March 10, 2023
WASHINGTON, DC—Following troubling reports that affordable housing complexes in Maine may lose federal protections, Congresswoman Chellie Pingree (D-Maine) and U.S. Senator Angus King (I-Maine) are urging the U.S. Department of Agriculture (USDA) to take action that will safeguard critical housing.
“We understand and appreciate that USDA RD is working to prioritize Section 515 properties for preservation,” Pingree and King said. “Unfortunately, two Section 515 properties in Maine, Whispering Pines and Jordan Courts II, may lose affordable units if they are transferred to private owners following section 515 loan accelerations. The sale of Whispering Pines may result in weaker affordability protections for 60 percent of the units. Similarly, there are 24 units in the Jordan Courts II complex that are also now at risk of losing affordability protections. We are concerned by recent reporting that RD has not communicated the sale of these properties to mission-driven housing groups committed to preserving affordability.”
In their letter, Pingree and King urged USDA Secretary Tom Vilsack to “examine regulatory codes that allow Section 515 properties to be sold to private developers through an accelerated sale, disadvantaging local housing authorities as potential buyers.”
The full letter is copied below and available online here.
Pingree is a senior member of the House Agriculture Committee and House Appropriations Subcommittee on Agriculture, Rural Development, Food and Drug Administration, and Related Agencies. Earlier this month, Pingree announced more than $1.2 million in grant funding for affordable housing efforts in Maine’s First Congressional District.
Senator King has long been committed to ensuring Maine people across the state can access affordable, safe housing. Last year, he introduced a bipartisan bill to help students who are currently homeless access affordable housing while pursuing their education, and has worked to expand affordable workforce housing on Mount Desert Island.
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Dear Secretary Vilsack:
We write to convey our serious concerns over the increasing number of United States Department of Agriculture (USDA) Rural Development (RD) Section 515 housing units in Maine that are losing affordability protections.
Maine is experiencing a housing crisis, with an estimated shortage of 20,000-25,000 units for low-income residents. The Section 515 properties have critically-needed affordability protections, including income limits and rent prices set below market rate. We understand many of these properties were built many years ago and are reaching loan maturity. The sale of these properties is resulting in Mainers losing access to affordable housing.
We understand and appreciate that USDA RD is working to prioritize Section 515 properties for preservation. Unfortunately, two Section 515 properties in Maine, Whispering Pines and Jordan Courts II, may lose affordable units if they are transferred to private owners following section 515 loan accelerations. The sale of Whispering Pines may result in weaker affordability protections for 60 percent of the units. Similarly, there are 24 units in the Jordan Courts II complex that are also now at risk of losing affordability protections. We are concerned by recent reporting that RD has not communicated the sale of these properties to mission-driven housing groups committed to preserving affordability.
We respectfully ask that you examine regulatory codes that allow Section 515 properties to be sold to private developers through an accelerated sale, disadvantaging local housing authorities as potential buyers. Additionally, we request responses to the following questions by March 23, 2023:
Preserving Section 515 options is vital for states like Maine where so many of our neighbors need safe, affordable housing. Thank you for your prompt responses to our concerns.
