Housing Legislation LD 2003

LD 2003 was passed by the State Legislature and signed by the Governor in April 2022, and went into effect July 27, 2022. The goal of the new law is to alleviate the housing affordability issues in Maine by increase housing opportunities.

LD 1706, An Act to Clarify Statewide Laws Regarding Affordable Housing and Accessory Dwelling Units, became effective on June 16, 2023. 

This legislation amends LD 2003 by extending the implementation date of July 1, 2023, to January 1, 2024, for municipalities that enact ordinances by municipal officer without further action or approval by voters of the municipality and July 1, 2024, for all other municipalities. 

 

What is LD2003?

It requires towns and cities to increase housing density allowed in their zoning ordinances in several different ways.

  1. It requires municipalities to allow additional units on lots zoned for single-family homes.
  2. It requires municipalities allow at least one accessory dwelling unit on lots with existing single-family homes.
  3. In some areas, (see below) it requires municipalities to allow 2 1/2 times the currently allowed housing units, for developments where most of the units meet standard affordability definitions.
  4. The extent of the law’s requirements are determined by “growth areas”.

 

Where is our "growth area"?

The law defines a growth area as:

1) Locally designated growth areas identified in a comprehensive plan which meets consistency guidelines of the Growth Management Program

OR in the absence of a consistent comprehensive plan

2) an area served by a public sewer system with capacity for a growth-related project

3) an area identified in the most recent Decennial Census as a census-designated place, or

4) a compact area of an urban compact municipality

 

Where can I get more information?

The Maine Department of Community and Economic Development (DECD) has provided a Guidance Document (Updated Oct 2023) to clarify the different aspects of the law. 

 

The DECD has released final rule for LD2003:

 

What help is available?

Municipal Payment Program: The DECD has established a municipal payment program for municipalities to seek funding or reimbursement for updating their land use ordinances. 

a. Eligible municipalities that have (1) one or more designated growth areas or (2) a public, special district, or other centrally managed water system and a public, special district, or other comparable sewer system shall receive up to $10,000.
 
b. Eligible municipalities that do not have (1) designated growth areas or (2) a public, special district, or other centrally managed water system and a public, special district or other comparable sewer system shall receive up to $5,000.

For more information, go to maine.gov/decd/housingopportunityprogram