7.__Funding rules.__The board shall adopt rules, in cooperation with the Maine State Housing Authority, necessary to implement the Affordable Neighborhood Development Fund, established in section 4757.__The rules must require the board to first look to the Land for Maine's Future Fund, established in Title 5, section 6203, and other state funding sources that fund open space preservation for funding costs associated with open space and to the Department of Transportation for funding costs associated with transportation before allocating funds from the Affordable Neighborhood Development Fund for such purposes.__The rules must provide preferences for projects that are proposed in communities where there is a demonstrated need for affordable housing.__Rules adopted pursuant to this subsection are routine technical rules as defined in Title 5, chapter 375, subchapter 2-A.

8.__Reports.__The Maine State Housing Authority shall report to the joint standing committee of the Legislature having jurisdiction over housing matters in January 2005 and January 2007 on the status of the affordable neighborhood development program and the Affordable Neighborhood Development Fund.

9.__Repeal.__This section is repealed April 30, 2008.

Sec. 3. 30-A MRSA §4757 is enacted to read:

§4757.__Affordable Neighborhood Development Fund

1.__Establishment.__The Affordable Neighborhood Development Fund is established under the jurisdiction of the Maine State Housing Authority.__For the purposes of this subchapter, "fund" means the Affordable Neighborhood Development Fund.

2.__Sources of fund.__The following must be paid into the fund:

A.__All money appropriated for inclusion in the fund;

B.__From the real estate transfer tax imposed by Title 36, section 4641-A, $100,000 per month;

C.__Subject to any pledge, contract or other obligation, all interest, dividends or other income from investment of the fund; and

D.__Any other money, including federal money, deposited in the fund to implement the provisions of this section.