An Act To Provide Incentives for Affordable Neighborhood Developments
Maine Legislature, Session 121, LD 1084
Committee: Business, Research and Economic Development
Sponsors: BROMLEY, COWGER, FAIRCLOTH, LEMOINE, NORBERT, SULLIVAN, SUSLOVIC
Amends: 5 MRSA §12004

Legislative Document 
No. 1084 
H.P.802 
House of Representatives, March 4, 2003 
An Act To Provide Incentives for Affordable Neighborhood 
Developments 
Reference to the Committee on Business, Research and Economic Development suggested 
and ordered printed. 
Presented by Representati ve KOFFMAN of Bar Harbor. 
Cosponsored by Senator BROMLEY of Cumberland and 
If/~frJ.~ 
MILLICENT M. MacFARLAND 
Clerk 
Representatives: COWGER of Hallowell, FAIRCLOTH of Bangor, LEMOINE of Old Orchard 
Beach, McLAUGHLIN of Cape Elizabeth, NORBERT of Portland, SULLIVAN of Biddeford, 
SUSLOVIC of Portland. 
Printed on recycled paper 
Be it enacted by the People of the State of Maine as follows: 
Sec.i. 5 MRSA §12004·G, sub·§14.D is enacted to read: 
14-D. 
State 
;/175 12er 
30-A MR5A 
Housing 
AffQrgg,ble 
meeting 12l ys §436l 
NeighborhQog 
e X12en§e§ fQr 
Develo12ment 
certain 
Review Board 
members 
Sec. 2. 30·A MRSA §4361 is enacted to read: 
§4361. 
Regulation of affordable neighborhood development 
1. 
Definitions. 
As 
used 
in thi§ 
section, 
unless 
the 
context 
Qtherwise 
indicates, 
the 
following 
terms 
have 
the 
following meaning§. 
A. 
"Acce§sory dwelling unit" meg,ns a dwelling unit of 600 
sguare feet Qr less wi thin a 
§ingle-family dwelling or a 
building 
accessory 
to 
g,ng 
on 
the 
same 
lot 
as 
the 
single-family 
dwelling 
when 
the 
Qwner 
of 
the 
property 
occupie§ either the main dwelling Qr the accessory dwelling 
unit· 
B. 
"Affordable neighborhood gevelo12ment" means a primarily 
residential development on at least 3 contiguous acres in 
which at least 
25% of the dwelling units are affordable 
housing as defined by sectiQn 4301 and that is designed to 
be compact and walkable; is §erved by, or will be served by 
an extension of, 
a 
public sewer; 
includes internal open 
space g,nd other 
common 
Qpen space; 
includes one or more 
small-§cale nonresidential uses of §ervice to the residents 
of the develol?ment, either built within the development or 
available within 1/2 mile of the development; 
and meets 
design guidelines established pyrsug,nt to subsection 6. 
C. 
"Common ol?en space" means a I?arcel or I?arcels of land, 
an 
area of 
wg,ter 
Qr 
a 
combinatiQn of 
19,ng 
and 
water, 
including floodplain§ and wetlg,ngs, within or traversing 
c\ 
develQpment 
g,nd 
designeg 
ang 
intenged 
for 
the 
use 
and 
enjoyment of residents of the development. 
"Common open 
space" does not include 19,nd or yg,rg§ allocg,ted to specific 
dwelling 
units 
or 
other 
structures 
or 
in 
public 
right§-of-way. 
D. 
"Complete plan" means a plan signed ang sealed by the 
professiQnal land surveyor unger whose responsible charge a 
land 
§yrvey was 
completed 
and by 
a 
19,ng§cape 
architect 
certified 
~n the State under who§e responsible charge all 
Page l-LR0789(1) 
elements of the plan, as required by the design guidelines 
established in subsection 6, have been addressed. 
E. 
"Internal open space" means a component of common open 
space consisting of one or more parcels with a minimum area 
of 
square 
feet, 
of 
a 
distinct geometric 
shape 
and 
bounded by streets or other rights of way. 
f. 
"Precertified development" 
means 
a 
development that, 
prior to final approvals by a local board, has been reviewed 
by the board established in subsection 4 and certified as an 
affordable neighborhood development. 
2. 
Applicability. 
This section applies to a project if a 
municipality and 
a 
developer agree that the project will be 
regulated as an affordable neighborhood development under this 
section. 
3. 
Eligibility for funding. 
A municipality in which an 
affordable neighborhood development is constructed pursuant to 
this 
section 
is 
eligible 
for 
funding 
from 
the 
Affordable 
Neighborhood 
Development 
Fund, 
created in section 
4757, 
for 
school construction and renovation costs, transportation costs, 
sewer and water costs and open space costs. 
The board can not 
release funds pursuant to this subsection until a certificate of 
occupancy is issued. 
4. 
State Affordable Neighborhood Development Review Board. 
The 
State 
Affordable 
Neighborhood 
Development 
Review 
Board, 
referred to in this section as "the board," is established within 
the Maine State Housing Authority. 
A. 
The board consists of the following 6 members: 
(1) 
The Director of the Maine State Housing Authority 
or the director's designee, who is the chair; 
( 2 ) 
The Director of the State Planning Office or the 
director's designee; 
(3) 
The Commissioner of Environmental Protection 
the commissioner's designee; 
(4) 
A landscape architect certified in the State, 
appointed by the Governor; 
(5) 
A town or city planner employed by a municipality 
in the State, appointed by the Governor; and 
(6) 
An elected municipal official, appointed by the 
Governor. 
The Director of the Maine State Housing Authority or the 
directo 
.~ designee 
may 
not vote 
on 
an application 
fOl 
certification as an affordable neighborhood development if 
the applicant is seeking financing from the authority. 
B. 
Appointed members of the board serve 3-year terms or 
until a successor is named, whichever is later, as long as 
they 
continue 
to 
hold positions 
that qualify 
them 
for 
appointment. 
A quorum is 4 members. 
C. 
Members 
of 
the 
board 
who 
are 
employed 
by 
State 
Government serve without pay. 
Other members of the board 
are entitled to receive $75 per day for their attendance at 
meetings 
and 
to 
reimbursement 
for 
reasonable 
expenses, 
including travel, to be paid by the Maine State Housing 
Authority. 
D. 
Within 
days 
of 
receiving 
a 
written request 
for 
approval of a precertified development along with a complete 
plan, the board, by a vote of a majority of the members 
present and voting, shall issue a written finding: 
( 1) 
Certifying 
that 
the 
plan 
meets 
the 
design 
guidelines 
established 
in 
this 
section 
for 
an 
affordable neighborhood development: or 
(2) 
Denying certification that the plan meets 
the 
design 
guidelines 
for 
an 
affordable 
neighborhoocl 
development and giving the reasons for the denial. 
An 
applicant whose request for certification is denied may 
resubmit a new complete plan at a later date. 
5. 
Regulation of affordable neighborhood development. 
A 
municipality in which an affordable neighborhood development is 
proposed: 
A. 
Except 
as 
required under Title 
or 
an 
ordinance 
adopted 
pursuant 
to 
Title 
38, 
may 
not 
require 
a 
single-family house lot within a precertified development be 
larger than 6,500 square feet or have frontage of more than 
feet on any road, except that it may require that the 
average frontage of all lots in that development be at least 
feet, and may not require dimensional standards for lots, 
buildings 
or 
roads 
in 
excess 
of 
the 
design 
guidelines 
established pursuant to subsection 6: 
B. 
Except 
as 
required under Title 
or 
an 
ordinance 
adopted 
pursuant 
to Title 
38, 
may 
not 
require 
that 
a 
multifamily lot within a precertified development have fewer 
than 
dwelling 
units 
per 
acre 
and 
may 
not 
require 
dimensional standards for lots, buildings or roads in excess 
of the design guidelines established pursuant to subsection 
~ 
C. 
May allow a precertified development to be located in 
any area where other residential development is allowed as 
long 
as 
public 
sewer 
is 
available 
to 
the precertified 
development either through an existing line or 
one that 
could be extended to that development. If a municipal zoning 
district enacted pursuant to a consistent comprehensive plan 
permits 
only 
single-family 
dwellings, 
the 
precertified 
development must be restricted to single-family dwellings, 
accessory 
dwelling 
units 
and 
small-scale 
nonresidential 
structures and uses found by the board to be integral to the 
development: 
D. 
Shall 
apply to 
a 
precertified development 
the 
same 
municipal 
subdivision 
and site plan 
reviews 
that 
other 
residential developments in the municipality are subject to, 
except 
that 
such 
reviews 
may 
not 
require 
dimensional 
standards for lots, buildings or roads in excess of the 
design guidelines 
established pursuant 
to 
subsection 
6. 
Municipal subdivision and site plan reviews of precertified 
developments 
must 
be 
completed within 
days 
of 
the 
submission of a complete application for such reviews; 
E. 
May substitute its own definition of "accessory dwelling 
unit" for the definition in subsection 3, paragraph A as 
long 
as 
that 
definition 
does 
not 
have 
the 
effect 
of 
prohibiting 
such 
a 
unit 
in 
an 
affordable 
neighborhood 
development; and 
F. 
May 
not 
impose 
an 
impact 
fee 
on 
an 
affordable 
neighborhood development. 
6. 
Design guidelines; rule. 
The board shall adopt by rule 
design guidelines for an affordable neighborhood development. The 
State Planning Office, 
in cooperation with the board, 
shall 
prepare draft guidelines for 
the board's consideration. 
The 
guidelines must include submission requirements and related fees 
and 
must 
generally 
respect 
the 
principles 
of 
walkable 
neighborhoods with a variety of lot sizes and types of housing 
for households of different incomes that respect the natural 
environment, 
provide for 
adequate fire protection 
and public 
safety and provide for appropriate internal open space and other 
common open space. 
Rules adopted pursuant to this subsection are 
major substantive rules as defined in Title 5, 
chapter 
375, 
subchapter 2-A. 
7. 
Funding 
rules. 
The 
board 
shall 
adopt 
rules, 
in 
cooperation with the Maine State Housing Authority, necessary to 
implement 
the 
Affordable 
Neighborhood 
Development 
Fund, 
established in section 4757. 
The rules must reguire the board to 
first look to the Land for Maine's Future Fund, established in 
Title 5, section 6203, and other state funding sources that fund 
open space preservation for funding costs associated with open 
space and to the Department of Transportation for funding costs 
associated with transportation before allocating funds from the 
Affordable Neighborhood Development Fund for such purposes. 
The 
rules must provide preferences for projects that are proposed in 
communi ties where there is a demonstrated need for affordable 
housing. 
Rules adopted pursuant to this subsection are routine 
technical rules as defined in Title 5, chapter 375, subchapter 
2-A. 
8. 
Reports. 
The Maine State Housing Authority shall report 
to 
the 
joint 
standing 
committee 
of 
the 
Legislature 
having 
jurisdiction over housing matters in January 2005 and January 
2007 
on the status of the affordable neighborhood development 
program and the Affordable Neighborhood Development Fund. 
9. 
Repeal. 
This section is repealed April 30, 2008. 
Sec. 3. 30·A MRSA ~4757 is enacted to read: 
§4757. 
Affordable Neighborhood Development Fund 
1. 
Establishment. 
The Affordable Neighborhood Development 
Fund is established under the jurisdiction of the Maine State 
Housing Authority. 
For the purposes of this subchapter, "fund" 
means the Affordable Neighborhood Development Fund. 
2. 
Sources of fund. 
The following must be paid into the 
A. 
All money appropriated for inclusion in the fund; 
B. 
From the real estate transfer tax imposed by Title 36, 
section 4641-A, $100,000 per month; 
C. 
Subject to any pledge, contract or other obligation, all 
interest, dividends or other income from investment of the 
fund; and 
D. 
Any other money, including federal money, deposited in 
the fund to implement the provisions of this section. 
3. 
AJlPlication of fund. 
The Maine State Housing Authority 
may apply money in the fund for purposes authorized by section 
4361. 
Money in the fund not needed for purposes of this section 
may be deposited with the Maine State Housing Authority to the 
credit of the fund or may be invested as provided by law. 
4. 
Accounts within fund. 
The Maine State Housing Authority 
may divide money in the fund into separate accounts determined 
necessary or convenient for carrying out this section. 
5. 
Revolving fund. 
The 
fund is a 
nonlapsing revolving 
fund. 
All money in the fund must be continuously applied by the 
Maine State Housing Authority to carry out this section. 
6. 
Program lapses. 
Notwithstanding subsection 5, if the 
purposes of the fund authorized by section 4361 are repealed, any 
uncommitted money in the fund lapses to the General Fund. 
7. 
Repeal. 
This section is repealed April 30, 2008. 
Sec. 4. 
Submission of rules. 
Rules adopted by the State 
Affordable Neighborhood Development Review Board pursuant to the 
Maine Revised Statutes, Title 30-A, section 4361, subsection 6 
must be submitted to the Legislature in accordance with Title 5, 
chapter 375, subchapter 2-A no later than December 1, 2004. 
SUMMARY 
This bill establishes 
the 
State Affordable 
Neighborhood 
Development Review Board within the Maine State Housing Authority 
under which a municipality may voluntarily agree to the creation 
of 
an 
affordable 
neighborhood 
development. 
The 
bill 
also 
establishes standards 
for 
affordable neighborhood developments 
and establishes incentives for municipalities to participate. 
The bill also creates the Affordable Neighborhood Development 
Fund.