Maine Lawmakers Remove Red Tape to Enable More Affordable Housing Construction

This article by Eesha Pendharkar was originally published in Maine Morning Star. It has been shortened by Planetizen.

A bill [Maine House of Representatives Speaker Ryan Fecteau] introduced — LD 1082, which eventually got wrapped into the budget — will increase the real estate transfer tax on properties that sell for more than a million dollars. That increased revenue, which only applies to the portion of the sale that exceeds one million dollars, will then be allocated to a dedicated fund for affordable housing.

LD 1829, another bill Fecteau sponsored, which was ultimately signed into law, makes comprehensive zoning changes to make it easier to build more units on the same lot, and removes some restrictions on the height, density and location of where housing can be built. 

The goal of the newly signed law is to increase smaller developments of two to four units on a lot, or make it easier to build that type of development in order to spur housing production close to existing public infrastructure such as sewer and water systems, for example, so that developers and municipalities don’t have to spend millions of dollars to extend those lines out to more rural areas.

Fecteau, McCollister, and Mitchell also pointed to several other bills that passed this session that will help increase the supply by easing some restrictions on developers. 

One such example is LD 146, sponsored by Sen. Peggy Rotundo (D-Androscoggin). The legislation streamlines the Historic Property Rehabilitation Tax Credit, which encourages private sector investment in the rehabilitation and re-use of historic buildings, by removing timeline barriers that have previously slowed down development projects.

Fecteau highlighted a new law introduced by Rep. Amy Roeder (D-Bangor), LD 427, that reduces the minimum parking requirements to one space per dwelling unit. Until now, some communities required a parking spot for every bedroom in a unit. 

Two successful measures from Rep. Marc Malon also create more opportunities for housing: LD 997, which allows residential construction in commercial zones, and LD 970, which opens up existing structures to be rehabilitated for housing.