The Affordable Housing Tax Increment Financing (AHTIF) Program offers municipalities a flexible financing tool to assist affordable housing projects and support related infrastructure and facilities by designating a specific area of the municipality as an affordable housing development district and adopting an affordable housing development program for the district. AHTIF enables communities to use the incremental tax revenues from the affordable housing district to help make the housing affordable and to pay for related costs.
Communities using AHTIF also avoid the decreases in state revenue sharing and state education subsidy and increases in county taxes that otherwise would occur with increased property values from the AHTIF district.
Eligible uses of incremental tax revenues from a district include:
The AHTIF statute at 30-A M.R.S.A. §§5245-5250-G sets out the required elements of an AHTIF district and its affordable housing development program. Key requirements include:
The designation of an AHTIF district and the adoption of a program to develop affordable housing in the district must first be approved by the municipality’s legislative body after a minimum 10-day public notice and a public hearing. Maine law requires municipalities to apply to MaineHousing for review of the district and development program approved by the municipality to ensure compliance with the conditions set out in the AHTIF statute.
Applications to MaineHousing must be submitted on the Application for Affordable Housing Tax Increment Financing. The information on the first two pages of the application, which is in fillable PDF format, needs to be provided along with the attachments listed in the application, but municipalities have the flexibility to provide information about the AHTIF district and the development program in a format of their own choosing, as long as the requirements of the AHTIF statute are met.
To assist municipalities in complying with the AHTIF statute’s requirements, the application includes some guidance on the various conditions of the statute that need to be satisfied and the information that MaineHousing will be looking for when it reviews the district and development program approved by a municipality. We encourage municipalities to provide us with a draft of the proposed AHTIF district and development program before it is submitted to their legislative body for approval.
AHTIF Program Administrator