Maine Deploys $35 Million from Supplemental Budget for Rural Workforce Housing Construction

AUGUSTA, ME — Maine Governor Janet Mills and the Maine State Housing Authority (MaineHousing) announced the deployment of $35 million authorized under the FY 2026–2027 Supplemental Budget to fund the Rural Affordable Rental Housing Program across Aroostook, Washington, and Oxford counties.

Unlocking Middle-Income Housing in Rural Communities

The funding provides forgivable construction subsidies up to $75,000 per unit for non-profit and private developers building multi-family apartments restricted to households earning between 60% and 100% of Area Median Income (AMI). The program addresses acute workforce housing shortages that have left rural hospitals, public school districts, and paper mills struggling to recruit essential personnel.

Governor Mills emphasized that every Maine community needs housing that working families, nurses, and teachers can afford, ensuring rural towns remain vibrant and economically competitive.

Hospital Coalitions and Rural Chamber Feedback

Rural healthcare federations praised the targeted investment, noting that medical staff vacancies often stem directly from a total lack of rental housing stock.

MaineHousing confirmed that funding will support modular and energy-efficient timber construction to withstand severe winter climates.

Application Intake Schedule

Developer funding applications open through MaineHousing on September 15, 2026, with awards announced in November.