 | Program Summary |
The Affordable Housing Tax Increment Financing (AHTIF) Program offers communities a flexible financing tool to assist affordable housing projects and support related infrastructure and facilities, including local schools. AHTIF enables communities to dedicate the incremental tax revenues from new affordable housing development to help make the housing affordable or to pay for related costs.
Communities using AHTIF also avoid the decreases in state revenue sharing and increases in county taxes that otherwise would occur with increased property values.
Eligible uses of incremental tax revenues include:
- Housing development or operating costs within the AHTIF district, such as capital investments, financing costs, project operating costs, professional service fees, administrative and start-up expenses, and the costs of recreational and child care facilities.
- Investments outside the AHTIF district that are necessary because of activities within the district, such as: infrastructure or public safety improvements, and mitigation of adverse impacts on the community (including costs to local schools).
- Establishing permanent housing development revolving loan or investment.
Several Maine municipalities already have used the AHTIF program since it became available in 2004. Click here for a summary of approved AHTIF districts and development programs.
| Am I Eligible? |
Municipalities with qualifying proposals are eligible for the AHTIF program. Key requirements include:
- At least 25% of the district area must be suitable for residential use, and development within the district must be primarily residential.
- The development must address an identified community housing need and comply with Maine law regarding growth-related capital investments.
- At least 33% of the housing units must be for households earning no more than 120% of area median income.
- The affordability of rental units must be maintained for at least 30 years; the affordability of homeownership units must be maintained for at least 10 years.
| How Do I Apply? |
A community designates an area as an Affordable Housing Development District, develops an Affordable Housing Development Program for the district, and applies to MaineHousing for approval. Steps include: - Municipality shares informal ideas and draft proposals with MaineHousing staff for early, informal review.
- Municipality’s council, selectmen, or other legislative body designates an Affordable Housing Development District and adopts an associated Affordable Housing Development Program.
- Municipality submits a completed application to MaineHousing for approval.
If MaineHousing approval is needed before the end of a given tax year (March 31), MaineHousing must receive the completed application no later than March 15. Applications must be submitted using the standard application form. Applications are processed in the order received.
For more information, see the related documents or contact:
| | Program Resources
Additional Resources |