News Briefs

Augusta may help homebuyers
By Elna Seabrooks
Staff Writer
AUGUSTA — Rep. Richard Cleary has teamed up with fellow lawmakers and state officials to craft a bill enabling first-time homebuyers to use stimulus tax credits up front for closing costs or energy-efficiency upgrades instead of waiting for a refund check from the IRS.
    “That tax credit is not available until next year at tax time,” says Cleary who adds that the federal tax credits are scheduled to expire at the end of November 2009 and “our bill would put legislation in place so that we could allow the first-time home buyer to have that money at the time of closing which would be very helpful.”
It means that Cleary’s late-session bill, which has strong support in Augusta, would create what amounts to a bridge loan for qualifying home buyers so they can get the stimulus cash immediately through deposits made by Maine’s treasurer to the buyer’s lending institution. To preclude getting paid twice, the buyer would, in turn, later repay the lender after filing an income tax return for the credits. Repayment would be made within a set amount of time to avoid penalties.     As part of President Barack Obama’s stimulus package to boost the country’s sagging economy, qualified first-time homebuyers can get up to $8,000 in tax credits when they file their income tax return in the spring. If the buyer qualifies for the maximum $8,000 credit and only has a $1,000 tax liability, for example, the taxpayer would receive $7,000 back from the government.
Unlike the July 2008 tax credit which was essentially a tax-free loan, this tax credit does not have to be repaid to the federal government.
To hasten the process and infuse more cash into Maine’s home-buying market, Cleary worked with a fellow lawmaker on the taxation committee, Rep. Elspeth Flemings (D-Bar Harbor), to develop the bill. The two representatives assembled a working group with House Majority Leader John Piotti, State Treasurer David Lemoine, Maine State Housing Authority Director Dale McCormick and legislative staff to figure out how to make the money available immediately.
The Maine State Housing Authority is the likely agency to administer the statewide program. And, qualifying guidelines for the proposed Maine program, if passed, mirror the federal guidelines. The buyer must not have owned a home three years prior to the purchase and must close on the sale before December 1, 2009 in addition to meeting income requirements and other criteria. Cleary says his bill helps buyers, realtors and sellers while stimulating the Maine market.
With the end of the legislative session upon them in mid June, the strategy has put the legislators in a position where they have to work fast since much of the prime home selling season would not benefit if the legislature adjourns without passage.
In spite of the time constraints, Cleary says: “I’m very optimistic. It was unanimous with all 10 members of leadership that the bill go forward to appropriations.”

Council gets energy and housing updates
By Elna Seabrooks
Staff Writer
HOULTON —  An update on the planned senior citizen affordable housing complex was the first topic discussed at the Houlton Town Council meeting May 26 with John Egan explaining that the delayed start was due to the national financial collapse. The planned year-long construction project developed by Coastal Enterprises, Inc. is scheduled to start construction in July on 28 apartments in the area off Market Square in the rear of the old Key Bank parking lot. Egan, director of housing development for the company, said the project now has stimulus money and tax credits in place.
Energy update
Geoff Clark presented an energy audit by Honeywell which found potential savings for town properties through energy conservation measures which include lighting upgrades, temperature control management, some window replacements and insulation.
Among Honeywell’s findings were potential utilities savings of $675,000 over 20 years taking consumption and cost escalation into account. Cost for the upgrades is projected at $211,375.
The audit stated that when the town replaced boilers, it “was a significant and sensible investment in town infrastructure.” The next step would be to find funding for retrofitting and upgrades, possibly from stimulus money or grants.
Other discussions and votes
Artists Glenn and Diane Hines are casting a statue of Houlton-born peace activist, Samantha Smith, who died tragically in a plane crash at age 13. After writing to Soviet leader Yuri Andropov in 1982, during the Cold War, the 10-year-old schoolgirl traveled to the USSR and became an international celebrity recognized as a representative for world peace.
The artists are working with Vital Pathways to raise money for the statue to be placed near the Cary Library.
The council accepted the following low bids: Keyes Paving of Smyrna for hand-placed pavement markings; Hi-Way Safety Systems, Inc. of Rockland, Mass. for machine-placed pavement markings; Maine Potato Growers for approximately 20,000 gallons of liquid calcium chloride; Steelstone Industries for asphalt street paving and sidewalk repair.
The council accepted a $25 donation from the Reed family for flowers on the islands at the I-95 exit.
Road and sidewalk projects
Road projects will involve a combination of overlaying, chip sealing, crack sealing and gravel road improvements. Sidewalk projects will consist of overlaying or removing existing sidewalks and replacing them.
In addition to projects funded from the recent bond, the town will use proceeds of a DOT grant to build new sidewalks on North Street from Marden’s Plaza to Walmart. A preliminary list of roads and sidewalks is available at the town office.
The next council meeting is  Monday, June 8 at 6:30 p.m.