Process Underway to Build Affordable Housing with Union Labor in 2023

The Maine State Housing Authority has begun the process of awarding funds for the construction of affordable housing built with union labor. In total, six housing projects have moved to the next phase of possible funding, with a total request of over $45 million to build nearly 450 units of affordable housing. While the final number and size of the projects that will fall under this program is yet to be determined, the expected start date for them is in the fall of 2023.  

Funding for these housing projects comes from part of Maine’s $50 million share of the Biden administration's American Rescue Plan funds to be used on affordable housing initiatives. The Maine State Building & Construction Trades Council, the Maine AFL-CIO and our allies worked with Senate President Troy Jackson, Sen. Cathy Breen (D-Cumberland) and Rep. Rebecca Millett (D-Cape Elizabeth) to carve out $20 million to build affordable housing under project labor agreements — pre-hire agreements between building trades unions and the general contractor that establish fair labor standards and and a blueprint for efficient construction.

This initiative is being implemented through the Maine State Housing Authority's Low Income Housing Tax Credit (LIHTC) program, which provides credits to developers, who then sell them to corporate investors. Money raised from the sale is used as equity in the developer’s rental housing project.

Representatives from the Maine AFL-CIO and the Maine State Building & Construction Trades Council weighed in on the rule-making process for the proposal and educated housing officials about how developers and contractors can collaborate well and both benefit from project labor agreements. When the program opened up for applications, there were a pile of bid proposals ready to go and Maine Housing officials also notified additional potential applicants and interested parties of the RFP.

"Due to great demand and limited funding, we were quickly oversubscribed for funding through the 4 percent Tax Credit Walk-In Funding Program Using Project Labor Agreements," said Maine Housing officials. "Consequently, we are no longer accepting additional applications for funding under that program."

Pre-applications are being vetted by Maine Housing and the Maine Building & Construction Trades Council continues to meet with potential developers.

"We're always willing to work with anyone who is committed to a high-road construction project, whether they come to the table willingly or whether something or someone gives them a needed shove; and whether it's for one job or 20," said said Jason J. Shedock, Regional Organizer for the Laborers' Union and President of the Maine State Building & Construction Trades Council. "The important fact is that our building trades members and the community will benefit from raising the bar.”