An Act to Clarify the Use of Municipal Rate-of-growth Ordinances
Maine Legislature, Session 121, LD 0395
Committee: Natural Resources
Sponsors: SUSLOVIC, EDER, FAIRCLOTH, KOFFMAN, MILLS, SA VIELLO

12lst MAINE LEGISLATURE 
Legislative Document 
No. 395 
H.P.315 
House of Representatives, January 30, 2003 
An Act to Clarify the Use of Municipal Rate-of-growth Ordinances 
Reference to the Committee on Natural Resources suggested and ordered printed. 
Presented by Representative SUSLOVIC of Portland. 
/!l~ 
'1J1.17l~ 
MILLICENT M. MacFARLAND 
Clerk 
Cosponsored by Representatives: EDER of Portland, FAIRCLOTH of Bangor, KOFFMAN of 
Bar Harbor, MILLS of Cornville, SA VIELLO of Wilton. 
Printed on recycled paper 
Be it enacted by the People of the State of Maine as follows: 
Sec. 1. 30·A MRSA §4360, as enacted by PL 2001, c. 591, §l, 
is repealed and the following enacted in its place: 
§4360. 
Rate of growth ordinances 
A municipality may enact an ordinance under its home rule 
authority limiting the number of building or development permits 
issued over a designated time frame, referred to in this section 
as 
a 
"growth 
rate 
ordinance," 
only 
under 
the 
following 
circumstances. 
1. 
Temporary growth rate ordinance. 
A 
temporary growth 
rate ordinance must meet the following reguirements: 
A. 
The temporary growth rate ordinance is needed to provide 
time for the municipality while it takes specific actions to 
improve facilities or services needed to accommodate growth; 
B. 
The temporary growth rate ordinance is enacted for a 
definite 
term, 
not 
to 
exceed 
years, 
unless 
the 
municipality is 
granted 
an 
exception pursuant 
to 
rules 
established by the office. 
Rules adopted pursuant to this 
paragraph are major substantive rules as defined in Title 5, 
chapter 375, subchapter 2-A; and 
C. 
A municipality may not enact a temporary growth rate 
ordinance more than once during any lO-year period. 
2. 
Ongoing growth rate ordinance. 
An ongoing growth rate 
ordinance may be enacted only as part of an integrated growth 
management strategy that includes the following components: 
A. 
An adopted comprehensive plan that is consistent with 
the planning and land use regulation laws under this chapter; 
B. 
A clear justification in the comprehensive plan under 
paragraph A that: 
(1) 
Identifies existing or projected capacity problems 
regarding municipal facilities and services; 
(2) 
Provides a strategy in the capital investment plan 
for increasing capacity regarding municipal facilities 
and services; 
(3) 
Links the proposed growth rate ordinance to an 
allocation of existing and future capacity regarding 
municipal facilities and services; 
(4) 
Provides a basis for the amount of growth to be 
allowed under the growth rate ordinance that considers 
the 
municipality's 
historic 
growth 
rates 
and 
its 
reasonable share of future growth anticipated in the 
region: 
(5) 
Considers the impact of the growth rate ordinance 
on housing affordability: and 
(6) 
Considers the impact of the growth rate ordinance 
on neighboring communities; 
C. 
A requirement that the number of building permits issued 
annually under the growth rate ordinance must be no less 
than the average number of permits issued annually by the 
municipality for the 
years prior to adoption of the 
growth rate ordinance; 
D. 
A requirement in the growth rate ordinance that the 
municipali ty review every 5 years the justification in the 
comprehensive plan under paragraph B to determine whether 
the growth rate ordinance is still necessary and how the 
growth 
rate 
ordinance 
may 
be 
adjusted 
to 
meet 
current 
conditions; and 
E. 
A requirement that res idential housing units affordable 
to low-income households as defined by rule be exempt from 
building cap provisions within the municipality's growth 
areas 
as 
designated within its comprehensive plan under 
paragraph A. 
This exemption does not apply to communities 
that provide adequate housing opportunities locally for this 
income group and that provide a reasonable share of adequate 
housing opportunities on a regional basis, as determined by 
the 
Maine 
State 
Housing 
Authority. 
In 
reviewing 
and 
approving 
proposals 
for 
housing 
units 
affordable 
for 
low-income households, municipalities may require provisions 
ensuring that these units, as built, will be sold or rented 
for a price that is affordable for this group as established 
by rule and that the affordabili ty will be maintained in 
subsequent resale or future rental of the units. 
The office shall adopt rules to implement this subsection. 
Rules 
adopted pursuant to this subsection are major substantive rules 
as defined in Title 5, chapter 375, subchapter 2-A. 
3. 
Growth rate ordinances that applY' outside designated 
growth areas. 
A municipality with a comprehensive plan adopted 
pursuant to the planning and land use regulation laws under this 
chapter may adopt an ongoing growth rate ordinance that applies 
only to designated rural areas if: 
A. 
That 
growth 
rate 
ordinance 
is 
recommended 
in 
the 
comprehensive plan as a mechanism for guiding growth; and 
B. 
The comprehensive plan lays out policies and strategies 
for accommodating most of the community's future growth in 
designated growth areas. 
SUMMARY 
This bill outlines how a municipality may adopt a growth 
rate ordinance. 
Temporary growth rate ordinances may be enacted 
only to slow development while a community works toward solving 
the problems necessitating the growth rate ordinance. 
An ongoing 
growth 
rate 
ordinance 
may 
be 
enacted 
only 
as 
part 
of 
an 
integrated growth management strategy and also may be used in 
designated rural areas as a mechanism to guide growth within a 
community. 
The bill also clarifies that a municipality with a 
comprehensive plan may implement a growth rate ordinance that 
applies only to designated rural areas.