ME LD1238

Creates a Small-cap Loan Guarantee Program providing state-backed loan guarantees to investors and developers for affordable housing construction or rehabilitation projects valued at $1,000,000 or less

Loan guarantees may cover up to 20% of the loan amount based on risk assessment, remaining in place for up to 20 years

Targets housing affordable to households at or below 80% of area median income (affordable housing) or 60% of area median income (low-income housing), with units required to maintain affordability status for 10 years after project completion

Maine State Housing Authority administers the program, funded by application fees rather than direct state appropriation, with annual reporting to the Legislature and State Auditor review

Takes effect July 1, 2026, with applications accepted beginning January 1, 2027