Maine Gov. Paul LePage has lifted a two-year moratorium on the sale of mortgage revenue bonds.
In the next few weeks it is expected that the Maine State Housing Authority will commence the sale of the tax-exempt bonds. The bonds will support the construction of about $40 million in affordable rental housing units in the next few months, LePage said.
“This type of bond is one more economic stimulus tool the state has in its tool box to create jobs and improve Maine’s economy through private investment,” LePage said. “Most importantly, it will fund the creation or renovation of affordable rental housing for income-eligible working individuals and their families.”
The authority could issue up to $120 million of the bonds in the next couple of years.
The authority’s bonds require the governor’s signature for Maine’s moral obligation to stand behind them.
The bonds are rated Aa1 by Moody’s Investors Service and AA-plus by Standard & Poor’s.
When LePage became governor in January 2011 he used his power to block issuance of already approved bonds, saying that Maine already had too much debt. Over the last few months, his opposition to bonds has softened and he has approved several new bonds.