For Immediate Release

Contact: Dale McCormick
Maine State Housing Authority
626–4611

AUGUSTA – Full funding of the state's Housing Opportunities for Maine (HOME) program as proposed in Governor John E. Baldacci's budget will increase MaineHousing's ability to finance affordable housing for first–time homebuyers, low–income renters, and people who are homeless or have special housing needs, MaineHousing Director Dale McCormick said.

"This is great news for Maine's low and moderate income seniors and families who need safe, affordable housing, and the increased housing activity this money generates will help bolster the state's economy," McCormick said. “Full funding for the state HOME program means we can leverage additional federal and private housing resources and create affordable housing for more Maine people.”

Maine established the HOME program in the mid–1980s and committed 45 percent of the state's Real Estate Transfer Tax to fund it. For the past several years some of that revenue has been used in the state's general budget to address the budget shortfall instead.

"Governor Baldacci has been an extraordinarily responsive leader on housing issues," McCormick said. "During his first term he brought the plight of homeless people to light by creating the statewide Homeless Council and creating a cabinet position to deal with homeless issues.

"He also helped address the energy crisis by promoting state funding for heating assistance, and encouraged us to create a low–interest rate energy loan program for working homeowners. Now he is recognizing that this is a critical moment to invest more funds in housing to address runaway housing costs."

McCormick noted that over the past five years (2000–2005) median home prices rose 67.4 percent, median rents rose 32.5 percent, but median incomes rose only 14.2 percent.

"Buying a home or finding an affordable apartment is becoming increasingly difficult for the average Maine family," she said. "We estimate that more than two–thirds of them no longer can afford the median–priced home."

MaineHousing uses the HOME program money in conjunction with its housing bonds to provide low interest rate mortgages (currently 5.3 percent) to first–time homebuyers, and to finance the downpayment and closing cost assistance option for homebuyers.

It also uses the HOME fund to finance supportive housing developments that serve people with special needs, such as people who have mental disabilities or are homeless. Other uses include leveraging federal grants for low–income rental housing and home improvement, matching federal grants to remove lead poisoning hazards caused by lead–based paint, making housing accessible for people with physical disabilities, and making homes safe and accessible for seniors.

The mission of the Maine State Housing Authority is to assist Maine people to obtain and maintain decent, safe, affordable housing and services suitable to their unique housing needs. Please visit our Web site at http://www.mainehousing.org

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