A Democrat representative from Kennebunkport has introduced a bill that would establish a new program and non-lapsing fund to support the conversion of vacant school buildings into residential housing.
Sponsored by Rep. Traci Gere (D-Kennebunkport), LD 2164 posits allocating $5 million in the 2026-27 fiscal year to the proposed Maine School Conversion Fund, portions of which would be used for a variety of expenses associated with transforming empty school buildings into usable housing.
Termed the Vacant School Housing Conversion Program, the proposed initiative would be established within the Maine Redevelopment Land Bank Authority and be authorized to provide “technical and financial assistance” to municipalities that choose to undertake such conversion projects.
In order to be eligible to participate in this program, a percentage of the units in the redeveloped property would need to be reserved for affordable housing.
The exact share is not specified in the proposed law, instead leaving that detail to the memorandum of understanding between the authority and the municipality.
Source: Proposed Language for LD 2164
Interested municipalities would need to enter into a “memorandum of understanding” with the Maine Redevelopment Land Bank Authority as a condition of their participation in the program.
By working with the authority, municipalities would be able to get help with determining the legal and financial feasibility of property conversion, navigating zoning and regulatory requirements, and identifying financing strategies to develop the property, among other things.
The Maine School Conversion Fund, with its starting appropriation of $5 million, would only be able to be tapped by the authority when it is serving as the administrator of requests for proposals on behalf of a participating municipality.
Source: Proposed Language for LD 2164
Included in the proposed legislation is a non-exhaustive list of the potential ways these funds could be spent, such as on design and engineering studies, property improvements, and hazardous material removal, among other things.
Beginning on February 1, 2027, the authority would be required to submit an annual report to the appropriate legislative committee detailing the work they’ve done and evaluating the “impact attributed to the program on the economy and housing supply of participating municipalities.”
LD 2162 has been referred to the Health Coverage, Insurance and Financial Services (HCIFS) Committee and will likely be the subject of a public hearing in the near future.
