Housing is the solution to many of Maine’s crises, but it’s a challenge to build, rent or buy affordably.

This year, Maine took decisive, positive action. Thanks to the leadership of the Legislature and Gov. Janet Mills, several bold new policies the Maine Affordable Housing Coalition (MAHC) prioritized were signed into law. They remove barriers to housing development, unlock critical investments and help Maine people — young workers, older adults, families and essential employees — live where they work and put down roots in the towns they love.

For the first time ever, Maine’s state budget includes a dedicated, ongoing revenue stream to support affordable housing production — a historic milestone and long-standing goal of MAHC.

This new funding comes from increasing the real estate transfer tax on the portion of sales over $1 million, while removing it on income-eligible first-time home buyers. The revenue will grow over time, and is a long-term, consistent investment in building homes for Maine people.

Several new laws will also remove outdated barriers that have prevented homes from being built in the right places. LD 1829 reforms zoning to allow housing on smaller lots in community-designated growth areas, grants a one-story height bonus for affordable housing and provides training for planning board members.

These targeted changes will help communities grow in a way that aligns with their comprehensive plans. LD 970 simplifies permitting for residential projects on infill sites, and LD 997 allows residential housing to be built in commercial zones. This is a common-sense change that reflects how Maine communities can evolve and embrace mixed-use development.

Another major step forward came with the expansion of the Maine Historic Rehabilitation Tax Credit.

Through LD 146, the program’s cap will allow $10 million in the first year, and through LD 1755, rural housing projects can access an increased credit of 35%. This enables more historic buildings, such as mills, schools and factories, in small and large towns to be quickly converted into much-needed housing, while preserving the town’s character.

These are transformational changes. But they didn’t happen in isolation. MAHC proudly supported other important housing-related bills that passed this session. LD 1375 will begin to tackle the complexity of Maine’s building codes, which often slow or discourage new construction. LD 546 enables municipalities to pre-approve common building types, speeding up the local review process. LD 1500 provides funding to capitalize the state’s Community Development Financial Institutions (CDFI) fund, which helps finance housing and community projects across the state.

Together, these wins reflect a growing, bipartisan recognition: Maine’s housing crisis demands smart, systemic change.

This year’s policies mark a shift toward treating housing as essential infrastructure — just like roads, schools and clean water. The Legislature also approved one year of increased emergency shelter funding and new support for resident ownership of manufactured housing parks, helping preserve affordable housing.

Looking ahead, we’re encouraged by the momentum and committed to keeping it going. Several impactful housing bills were carried over for next session, including several housing bond proposals that would provide critical resources to build homes. We urge lawmakers to keep the urgency of housing as the solution when they return to Augusta.

MAHC thanks the Legislature and Gov. Mills for their leadership. These victories would not have been possible without our members and the everyday Mainers who spoke up and said clearly: we need more homes, and we need them now.

We also appreciate the active engagement of other organizations on housing policy this session — the Maine Real Estate Development Association, the Maine State Chamber, the Portland Regional Chamber, the Maine Homeless Council, Grow Smart Maine and Build Maine.

There’s more work ahead. But today, we celebrate real progress — and recommit to the belief that everyone in Maine deserves a safe, affordable place to call home.