Maine has an affordable housing problem

Last week, developers canceled plans to construct an affordable housing complex in the affluent town of Cape Elizabeth following a referendum campaign by residents in opposition to the project. The project, the first of its kind in Cape in 50 years, faced backlash from the start in a town where the average two-bedroom apartment is unaffordable to anyone making less than $92,000 a year.

“It’s an unfortunate loss for the community of Cape Elizabeth,” said Cape Elizabeth Town Council Chairman Jamie Garvin. “Affordable housing is something that is needed throughout the Greater Portland area and all of Maine. There are thousands of people in need of affordable and attainable housing. Every community in the area has a role to play in contributing to a solution to that problem.”

This project shutdown is symptomatic of a larger problem: Maine has a major shortage of affordable housing. According to housing experts, this is a problem that has existed for well over a decade, but it has become increasingly worse since the pandemic. Large, less populous states like Maine have become popular among out-of-state buyers seeking to leave major cities like Boston and New York. Experts estimate that the state currently lacks about 20,000 affordable housing units, and the state builds an average of just 230 units per year. At that rate, barring any other change in demand, it would take 87 years to cover the shortage.

This is unacceptable. Mainers are being pushed out of their communities by rent increases, which creates a ripple effect in employment, education, and more.

Some Maine communities are starting to take up the torch that Cape Elizabeth dropped. Bath, Skowhegan, and Portland are building 300 apartments between them using an $80 million tax credit program created by the Maine Legislature and Governor Mills in 2020. This program, the single largest investment in housing in the state’s history, aims to build nearly 1,000 affordable housing units over the next eight years. Another $50 million in federal funding allocated from the American Recovery Plan will be used to build additional units.

Governor Mills and the Maine Legislature have worked diligently to make the available housing supply affordable. They passed a series of bills to this end in 2021, including:

• LD 609: This law creates a commission to review barriers to producing more affordable housing in Maine.
  

• LD 953: This law helps cities and towns cover the cost of building affordable housing units both within and outside development districts to reduce homelessness.
  

• LD 1645: This law creates a statewide affordable housing tax credit, half of which is reserved for building new housing for seniors and residents of rural areas.
  

• The supplemental budget includes measures to permanently extend the Property Tax Fairness Credit to an additional 83,000 Mainers.

Mainers for Working Families applauds the Maine Legislature and Governor Mills for investing so heavily in addressing the affordable housing crisis in Maine. While more is needed to resolve the situation, we hope they continue their efforts to help Mainers afford a roof over their heads.

Addressing the Rising Cost of Home Heating in Maine

Anyone who’s spent a winter in Maine knows we’re in a constant battle with the elements. But for many Mainers, winter is also a time of major financial stress due to the cost of heating our homes.

Last winter, amidst the COVID-19 pandemic, prices for home heating oil and propane were at their lowest in eight years due to lower demand for petroleum products. It was a relief for many families who faced financial difficulties during this time. But experts say that demand has rebounded, and with a colder winter predicted for 2021-22, the prices are spiking. The federal Energy Information Administration projects that the cost per gallon of heating oil, natural gas, and propane will rise by as much as 43 percent, 30 percent, and 54 percent, respectively.

So how can Mainers afford to heat their homes this winter?

MaineHousing’s Home Energy Assistance Program (HEAP)

MaineHousing offers the Home Energy Assistance Program (HEAP), which offsets a portion of heating costs for Maine homeowners and renters. Benefits include help paying for fuel and emergency fuel delivery, as well as energy-related repairs. Eligibility depends on household size, income, and energy costs.

MaineHousing and other local agencies have $70 million available to support Maine families this winter. HEAP, though well-established, frequently goes unused.

“Only 20 to 25% of income-eligible households actually reach out and apply for the heating assistance program,” said MaineHousing Director Dan Brennan. “That’s only a quarter of people who are eligible. So people in Maine, our folks are proud and they don’t want to ask for help. They think that, you know, their neighbor needs it more than I do. There’s plenty of money. We have a lot of money available. We’re not going to run out. Please apply.”

Applications for HEAP are currently open. To see if you qualify and apply for the program, contact your local Community Action Agency (CAA).

2021 State Initiatives

In addition to the resources available through MaineHousing, Governor Mills has announced that the state will invest nearly $30 million in federal funding in heating assistance through the Maine Jobs and Recovery Plan. This money will be used in part to help low- and moderate-income families weatherize their homes through Efficiency Maine, adding insulation to help keep heat in and use less energy. $5.5 million will also be used to train people for jobs in the growing clean energy sector.

“Right now, Maine is the most heating oil-dependent state in the nation, something that our environment and Maine people pay the price for every time they go to turn up their thermostat. But it’s also something we can change,” said Governor Mills when announcing the planned investment. “Making homes and businesses more energy-efficient through weatherization cuts down on our use of harmful fossil fuels, protects our environment, and saves people money. Through the Maine Jobs & Recovery Plan, we will expand incentives to help people weatherize their homes and keep more of their hard-earned money, and we will train more Maine people to work in our growing clean energy sector, creating new green jobs and strengthening our economy.”

Energy Office Resource Guide

The Governor’s Energy Office has published a tips and resources guide designed to help Mainers ensure their heating system is efficient and get assistance if needed. Tips include scheduling annual system maintenance, asking your fuel provider about locking in a price for the winter, and scheduling automatic delivery to avoid emergency fueling.

The guide, as well as additional winter energy resources information, can be found here.

A rise in heating costs does not mean anyone has to freeze. There are programs and funds available to ensure that every Mainer stays warm this winter.

What Makes a Strong Paid Family and Medical Leave Policy?

The Commission on Paid Family and Medical Leave is in the midst of crafting its recommendations for Maine’s statewide Paid Family and Medical Leave Program. What can we expect that program to entail?

Last month, the Maine Paid Leave Coalition put forth its suggestions in a letter to the Commission, urging a comprehensive, universal approach to this much-needed policy. The Maine Paid Leave Coalition represents tens of thousands of Mainers among its organizations, including Mainers For Working Families, the Maine Women’s Lobby, the Maine People’s Alliance, Maine Center for Economic Policy, and Planned Parenthood.

Among the Coalition’s recommendations to the Commission on Paid Family and Medical Leave:

• A Universal Approach: For a Paid Family and Medical Leave policy to work in Maine, it must work for all Mainers. Regardless of gender, occupation, or family structure, every Mainer should have the opportunity to access paid leave. This leave should cover a variety of situations: leave for bonding with and caring for a new child, caring for a sick family member, addressing one’s own serious medical and mental health needs, and preparation and reintegration following military deployment.
  

• Job and Wage Security: Too many Americans come back from a leave of absence to find that they have lost the job they once had. Others taking leave don’t receive enough in replacement wages to cover their basic needs. No Mainer should have to choose between losing their income and taking care of themselves or their loved ones.
  

• 100% Public: Maine’s Paid Family and Medical Leave program should be administered exclusively by the State, with no private involvement from third parties or non-profits.
  

• Social Insurance: Just as every working Mainer should be able to take advantage of Paid Family and Medical Leave, every working Mainer should pay into the system to apply it effectively. It’s the same logic behind Social Security: employers and employees pay a small tax in order to access benefits in retirement.

You can read the Coalition’s full letter here.

Every single one of us has faced or will face a time when we need to take time off from work to care for ourselves or our loved ones. Nobody should have to choose between using leave and keeping their job to meet their basic needs. Mainers deserve a comprehensive, easily accessible Paid Family and Medical Leave program that benefits our families, our small businesses, and our communities.