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Maine

Maine law (ME. REV. STAT. tit. 30-A, §§ 4971-4978) invests the Maine State Housing Authority with the “right of first refusal to purchase” certain properties that are both subject to federal or state income eligibility restrictions and where the rents within the projects are controlled, regulated or assisted by a federal or state agency pursuant to a regulatory or rental assistance agreement. This right appears to effectively operate as a preemptive option, not a right of first refusal. The statute defines the trigger for the right as “the sale, transfer, or other action that would result in termination of the financial assistance.” Owners must give 90-days’ notice to the tenants, the State Housing Authority and the local PHA. If the housing authority responds in writing within the 90-day period that it intends to exercise its right, it gains an additional 90 days to “buy or produce a buyer for the property.” The statute also imposes a civil penalty of at least $2,500 for any entity that fails to give the requisite notice before selling or converting a subsidized property.

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