Emergency Bill LD 2003 has passed with bipartisan support in both the House and Senate despite opposition by the Maine Municipal Association and was signed by the governor on April 27, 2022 helping to create pathways to increase the supply of affordable housing.
It is based on the recommendations included in the report by the Commission To Increase Housing Opportunities in Maine by Studying Zoning and Land Use Restrictions. The spirit of this action is to incentivize municipalities to promote the availability of affordable housing by making changes to zoning of single-family dwellings and land use laws while honoring local control and incorporating often overlooked stakeholders in the conversation to explore solutions to the ongoing housing crisis here in Maine.
In addition to the recommendations by the Commission The Department of Economic and Community Development has created a Housing Opportunity Fund with $3.5 million to support municipalities with both technical and financial assistance. This bill encourages public investment through pro-growth policies while creating opportunities for smaller participation by not only looking to larger developments and instead letting landowners, builders, developers, and people who want to buy property be a part of the solution to the housing crisis.
Last year Maine led the nation in domestic migration, with more buyers moving here from other states than any other state and our housing stock is the oldest in the country. One in five homeowners in Maine are paying more than half of their monthly income for housing while it is recommended to not exceed 30 percent of your monthly income toward housing costs.
The bill introduces a state-wide density bonus for multi-family housing increasing permissible density by 2.5 times, its current base density in areas where multi-family housing is already allowed. Affordable housing developments approved on or after April 20, 2022 where at least 50 percent of the units meet the designated income guidelines must also ensure long term affordability by use of restrictive covenants for at least 30 years.
The density bonus may only be leveraged in areas identified by a Town’s Comprehensive Growth Plan or in areas where public water and sewer are available.
Another sweeping statewide change presented is to allow the construction of duplexes on vacant land where single family homes are permitted, even if in the past zoning did now allow for duplexes to be built in that area previously.
Current setbacks and dimensional requirements must be adhered to, and any Shoreland Zoning or deed restrictions must also be followed. In designated growth areas or lots which are connected to public water and sewer the bill will allow for up to four units where single family homes are permitted.
For already existing single-family homes in designated growth areas or those with public water and sewer up to two additional dwelling units may be added. Municipalities will be required to allow one attached unit to an already existing structure including conversions of garage or attic or one detached dwelling unit or one of each. Accessory Dwelling Units (ADU’s) will no longer count against a municipality’s growth cap giving flexibility where previously ADU’s could be denied for growth cap purposes. ADU’s will be permitted wherever single-family homes are allowed but must meet area setback requirements. One of the largest barriers for many projects is minimum lot size, which this bill does not address.
Towns are encouraged to welcome community members to take part in the process and conversation surrounding zoning ordinance changes which promote growth. 202 of the 500 municipalities in our state have no Zoning at all, so each Town will face its own challenges in preparation for the July 1, 2023 changes to take effect.
If you currently own property, it is important for you to take the time to learn more about what your municipality is considering for implementation as this will directly impact property use and values.
Knowing the full potential of what may be done with your property is an important first step when weighing decisions of what your own next steps might be. Contact your local Code Enforcement Department to inquire about ways to become involved in the process at a local level or to see how your own property will be affected. <
Nicole Foster is a Broker with Locations Real Estate with over 16 years of experience helping buyers and sellers in Maine. She is a Windham parent and resident who loves people and real estate.
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