We know our member businesses are grappling with an acute shortage of affordable housing for their employees and are concerned about our states’ growing housing crisis. At a recent Housing Policy Conference hosted by the Maine Affordable Housing Coalition, stakeholders gathered to discuss potential solutions, policy developments, and strategies to address this major issue. 

These discussions have important implications for industries like tourism and hospitality, where workforce shortages are directly tied to the lack of available housing. For business owners and managers who have been struggling to secure housing for their staff, understanding the latest trends and initiatives in the housing market is crucial. In this summary, we highlight key insights from the conference that may help guide your business decisions in the coming months and years.

Part II: State Housing Policy Outlook

Senator Teresa Pierce (D-Falmouth) and Representative Mark Blier (R-Buxton) discussed the work of the Maine legislature's Special Housing Committee, its accomplishments, and the unfinished business in the housing space, including the need for a reliable funding stream, addressing infrastructure barriers, and changing the conversation around housing development at the state and local levels.

Key achievements from the previous legislature's Housing Committee included:

  1. Accessory Dwelling Units (ADUs): LD2003 changed zoning laws to require that municipalities allow between two and four housing units per lot where housing is permitted and requires that municipalities allow accessory dwelling units to be located on the same lot as a single-family home, under certain conditions. This enables more housing, especially for multigenerational families.

  2. Increased Funding: Secured over $100 million for housing programs, including first-time homeownership and support for vulnerable populations.

Unfinished goals include:

  • Establishing long-term funding mechanisms for housing initiatives.

  • Addressing infrastructure challenges like potable water and fire suppression in rural areas.

  • Overcoming barriers such as zoning restrictions and workforce shortages in construction trades and public services.

The panelists also stressed the importance of shifting public perception on housing projects, promoting a "Yes In My Backyard" (YIMBY) attitude to counter resistance rooted in outdated stigmas. 

Funding 

Both Senator Peirce and Representative Blier see the need for a reliable, ongoing funding source for housing as it is a critical investment for economic stability and individual well-being. However, the state is currently looking at a $1 billion shortfall within the budget, so this presents a challenge; they discussed potential solutions like bonds and tax incentives. Maine’s Constitution thwarts some potential funding streams, like option sales tax or using real estate transfer tax. While some view the state’s Budget Stabilization Fund as a resource to address housing, this is not a viable option because these reserves are meant for economic downturns or emergencies only.

Employer Involvement in Public-Private Partnerships:

  • Employers and private organizations are encouraged to participate in the construction of workforce housing, as public entities cannot possibly meet the need by themselves.

  • During the panel, Representative Blier floated the idea of tax incentives for employers to build housing, but this is part of the larger discussion around funding mechanisms.

  • Examples of employer involvement in housing include companies assisting employees with down payments and building dedicated housing for their staff.

The Upcoming Legislative Session

The panelists are optimistic about the legislature's ability to work together on housing issues, despite the potential for some disagreements. They see home ownership as a key focus area and are open to exploring various policy solutions, including:

  • The need for community education and collaboration to overcome resistance to development–this could potentially be done through regional entities like housing authorities.

  • Programs like historic rehabilitation tax credits have been effective in repurposing old structures into housing. Legislators express optimism about reintroducing and passing similar measures.

  • Both advocate for making the temporary housing committee a permanent joint standing committee to maintain focus on housing as a priority. The bipartisan work of the committee has proven effective.

  • Proposals include incentivizing developers, easing building regulations for accessory dwelling units (ADUs), and creating predictable, consistent funding sources.

 

Go to:
Part I: Federal Policy Outlook
Part III: Business Leaders on Housing
Part IV: Land Use and Permitting