When the "real estate transfer tax" was passed, in the '80s, it was the intent of the state legislature and Governor to allocate 45 percent of its proceeds to a fund, Housing Opportunities for Maine which is administered by the Maine Housing Authority.

The HOME Fund, whose coffers are replenished each year by the Real Estate Transfer Tax being collected each year does far more than add $7.5M into the home fund. It leverages many times that amount from Federal and private resources. A Short list of some of the funding it leverages includes:

4% Low Income Housing Tax Credits (used for developing housing)
Debt–free supportive housing
Bond cap
9% Low Income Housing Tax Credits
Fed Home Money
Continuum of Care money (HUD Homeless allocation)

Rural Development (RD) money
RD Rental

Affordable Housing Program money (through Federal Home Loan Bank grants And loans)

Federal Grants
Grants through Department of Veterans Affairs
Federal Homeless Youth and Runaway Act money

During the last few years, the "Housing Boom" has kept some resources above this initial $7.5 million available. However, with the recent slackening of, and prospect of a continuing slide in real estate sales, the transfer tax collections will be less, fewer sales equal less tax collected. This will directly effect what the HOME Fund monies can do toward upgrading Maine's affordable and low income housing; Maine has one of the oldest housing stocks in the US.

Keeping the $7.5M in the fund prevents waste. Leveraged resources are just sitting there when there is no money in the Home Fund; they End up being sent back to Washington and we lose the opportunity to increase our stock of low income and affordable housing.

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