No More Human Rights Act Provisions
Speaker Fecteau’s amendment entirely removes LD 2003’s earlier provisions that prohibited municipalities from restricting local housing development based on the character of a location, overcrowding, or density. Several commenters had raised issue with those restrictions as they appeared to conflict with established law governing shoreland zoning, comprehensive planning, subdivision review, and zoning variances. Their removal from LD 2003 removes a significant cloud over the impact LD 2003 would have on existing zoning laws and review processes and should come as a relief for most municipalities. The amendment does require municipalities to ensure that zoning ordinances affirmatively further the purposes of the Federal Fair Housing Act and Maine Human Rights Act; however, this more nebulous requirement provides additional leeway for implementation and interpretation of municipal ordinances and regulations.No More State Review of Local Decisions
Also removed from LD 2003 is the controversial Municipal Housing Development Review Board, which would have had the authority to review municipal decisions on housing development permit applications. It had been unclear how the Review Board would affect existing appeal processes and many commenters had expressed concern that State review of municipal decisions represented a loss of local control over distinctly local matters.Modification of Local Assistance
Speaker Fecteau’s amendment further modifies the technical and financial assistance offered to municipalities to adopt and implement ordinances promoting housing development. Many municipalities lack the capacity and funding to draft, adopt, and properly administer comprehensive zoning and land use ordinances. State support for these activities has been lacking since the closure of the State’s Planning Office in 2012. As originally drafted, LD 2003 committed over $4,000,000 for the Department of Economic and Community Development to provide municipalities with technical assistance and grants for the development and implementation of zoning and land use ordinances.The amendment creates the Housing Opportunity Program, administered by DECD, to provide grants to “experienced service providers” providing a range of services to municipalities related to promoting affordable housing development. The amendment commits $3,000,000 to the Housing Opportunity Program. The amendment removes funding originally committed to DECD to provide municipalities with technical assistance and instead authorizes DECD to provide such assistance to the extent possible “with available resources.” Additionally, the amendment removes the incentive funding available to municipalities working to adopt ordinances promoting affordable housing development. Together, these changes will reduce the much-needed technical assistance and funding available to municipalities but will generally expand DECD’s ability to assist municipalities.
While the reduction in available assistance is an unfortunate development, it is offset by the removal from LD 2003 of the requirement that all municipalities adopt zoning ordinances that prioritize areas for housing development. This requirement would have placed a significant burden on many smaller municipalities without comprehensive zoning that would not have been able to comply without technical and financial support from DECD.
Modified Density Requirements
Much of the controversy around the original LD 2003 involved its changes to municipal density restrictions. As drafted, LD 2003 required municipalities to permit affordable housing developments with dwelling unity densities at least 2.5 times greater than what was otherwise allowed in the underlying zone and allowed structures within residential zones to have up to four dwelling units, subject to some limitations. The amendment substantially narrows the density requirements of LD 2003 by only applying the 2.5 density multiplier for affordable housing developments in zones that permit multi-family dwelling units, and which are either within a designated growth area or served by public water and sewer systems. Additionally, the density requirement for residential zones has been reduced to two dwelling units for lots without an existing dwelling unit and four dwelling units for lots without an existing dwelling unit that are also within a designated growth area or served by public water and sewer systems. Municipalities are also required to permit lots with an existing dwelling unit to add up to two additional dwelling units, subject to certain restrictions.Delayed Implementation
Maine’s long-standing shortage of readily available, affordable housing became a full-blown crisis over the past three years, as the COVID-19 pandemic greatly increased demand and housing costs throughout the State for both home ownership and rentals. Nevertheless, bowing to concerns regarding the timeline for implementation of the changes in LD 2003, Speaker Fecteau’s recent amendment removes the emergency preamble from the bill and delays implementation of many requirements related to affordable housing and residential zone density requirements to July 2023. The delayed implementation should come as welcome news for many municipalities, which would have had very limited time to amend local ordinances and policies and would have had to call special town meetings to adopt them within that timeframe.Speaker Fecteau’s amendments address many of the concerns raised about LD 2003 and should largely come as welcome news to Maine municipalities. However, the bill will still need to proceed through the House and Senate, where it is likely to undergo additional changes.
