An Act To Streamline the Municipal Review Process When Dividing a Structure into 3 or More Dwelling Units and To Amend the Process for Recording Subdivision Variances
Maine Legislature, Session 128, LD 0805
Committee: Environment and Natural Resources
Sponsors: LIBBY, CAMPBELL, CARSON, GRATWICK, VOLK, JORGENSEN
Amends: 30-A MRSA §4401, 30-A MRSA §4402, 30-A MRSA §4406

Legislative Document
No. 805
S.P. 250
In Senate, March 2, 2017
An Act To Streamline the Municipal Review Process When Dividing 
a Structure into 3 or More Dwelling Units and To Amend the 
Process for Recording Subdivision Variances
Reference to the Committee on Environment and Natural Resources suggested and ordered 
printed.
HEATHER J.R. PRIEST
Secretary of the Senate
Presented by Senator LIBBY of Androscoggin.
Cosponsored by Representative CAMPBELL of Orrington and
Senators: CARSON of Cumberland, GRATWICK of Penobscot, VOLK of Cumberland, 
Representative: JORGENSEN of Portland.
Be it enacted by the People of the State of Maine as follows: 
Sec. 1.  30-A MRSA §4401, sub-§4, as amended by PL 2013, c. 126, §1, is 
further amended to read: 
4.  Subdivision.  "Subdivision" means the division of a tract or parcel of land into 3 
or more lots within any 5-year period that begins on or after September 23, 1971.  This 
definition applies whether the division is accomplished by sale, lease, development, 
buildings or otherwise.  The term "subdivision" also includes the division of a new 
structure or structures on a tract or parcel of land into 3 or more dwelling units within a 5-
year period, the construction or placement of 3 or more dwelling units on a single tract or 
parcel of land and the division of an existing structure or structures previously used for 
commercial or industrial use into 3 or more dwelling units within a 5-year period. 
A.  In determining whether a tract or parcel of land is divided into 3 or more lots, the 
first dividing of the tract or parcel is considered to create the first 2 lots and the next 
dividing of either of these first 2 lots, by whomever accomplished, is considered to 
create a 3rd lot, unless: 
(1)  Both dividings are accomplished by a subdivider who has retained one of the 
lots for the subdivider's own use as a single-family residence that has been the 
subdivider's principal residence for a period of at least 5 years immediately 
preceding the 2nd division; or 
(2)  The division of the tract or parcel is otherwise exempt under this subchapter. 
B.  The dividing of a tract or parcel of land and the lot or lots so made, which 
dividing or lots when made are not subject to this subchapter, do not become subject 
to this subchapter by the subsequent dividing of that tract or parcel of land or any 
portion of that tract or parcel.  The municipal reviewing authority shall consider the 
existence of the previously created lot or lots in reviewing a proposed subdivision 
created by a subsequent dividing. 
C.  A lot of 40 or more acres must be counted as a lot, except: 
(2)  When a municipality has, by ordinance, or the municipal reviewing authority 
has, by regulation, elected not to count lots of 40 or more acres as lots for the 
purposes of this subchapter when the parcel of land being divided is located 
entirely outside any shoreland area as defined in Title 38, section 435 or a 
municipality's shoreland zoning ordinance. 
D-1.  A division accomplished by devise does not create a lot or lots for the purposes 
of this definition, unless the intent of the transferor is to avoid the objectives of this 
subchapter. 
D-2.  A division accomplished by condemnation does not create a lot or lots for the 
purposes of this definition, unless the intent of the transferor is to avoid the objectives 
of this subchapter. 
D-3.  A division accomplished by order of court does not create a lot or lots for the 
purposes of this definition, unless the intent of the transferor is to avoid the objectives 
of this subchapter. 
D-4.  A division accomplished by gift to a person related to the donor of an interest in 
property held by the donor for a continuous period of 5 years prior to the division by 
gift does not create a lot or lots for the purposes of this definition, unless the intent of 
the transferor is to avoid the objectives of this subchapter.  If the real estate exempt 
under this paragraph is transferred within 5 years to another person not related to the 
donor of the exempt real estate as provided in this paragraph, then the previously 
exempt division creates a lot or lots for the purposes of this subsection.  "Person 
related to the donor" means a spouse, parent, grandparent, brother, sister, child or 
grandchild related by blood, marriage or adoption.  A gift under this paragraph can 
not be given for consideration that is more than 1/2 the assessed value of the real 
estate. 
D-5.  A division accomplished by a gift to a municipality if that municipality accepts 
the gift does not create a lot or lots for the purposes of this definition, unless the 
intent of the transferor is to avoid the objectives of this subchapter. 
D-6.  A division accomplished by the transfer of any interest in land to the owners of 
land abutting that land does not create a lot or lots for the purposes of this definition, 
unless the intent of the transferor is to avoid the objectives of this subchapter.  If the 
real estate exempt under this paragraph is transferred within 5 years to another person 
without all of the merged land, then the previously exempt division creates a lot or 
lots for the purposes of this subsection. 
E.  The division of a tract or parcel of land into 3 or more lots and upon each of 
which lots permanent dwelling structures legally existed before September 23, 1971 
is not a subdivision. 
F.  In determining the number of dwelling units in a structure, the provisions of this 
subsection regarding the determination of the number of lots apply, including 
exemptions from the definition of a subdivision of land. 
G.    Notwithstanding the provisions of this subsection, leased dwelling units are not 
subject to subdivision review if the municipal reviewing authority has determined 
that the units are otherwise subject to municipal review at least as stringent as that 
required under this subchapter. 
H-1.    This subchapter may not be construed to prevent a municipality from enacting 
an ordinance under its home rule authority that: 
 (1)  Expands the definition of "subdivision" to include the division of a structure 
for commercial or industrial use; or 
 (2)  Otherwise regulates land use activities. 
A municipality may not enact an ordinance that expands the definition of 
"subdivision" except as provided in this subchapter.  A municipality that has a 
definition of "subdivision" that conflicts with the requirements of this subsection at 
the time this paragraph takes effect shall comply with this subsection no later than 
January 1, 2006.  Such a municipality must file its conflicting definition at the county 
registry of deeds by June 30, 2003 for the definition to remain valid for the grace 
period ending January 1, 2006.  A filing required under this paragraph must be 
collected and indexed in a separate book in the registry of deeds for the county in 
which the municipality is located. 
H-2.  This subchapter may not be construed to prevent a municipality from enacting 
an ordinance under its home rule authority that otherwise regulates land use activities. 
A municipality may not enact an ordinance that expands the definition of 
"subdivision" except as provided in this subchapter.  A municipality that has a 
definition of "subdivision" that conflicts with the requirements of this subsection at 
the time this paragraph takes effect shall comply with this subsection no later than 
January 1, 2019.  Such a municipality must file its conflicting definition at the county 
registry of deeds by June 30, 2018 for the definition to remain valid for the grace 
period ending January 1, 2019.  A filing required under this paragraph must be 
collected and indexed in a separate book in the registry of deeds for the county in 
which the municipality is located. 
I.  The grant of a bona fide security interest in an entire lot that has been exempted 
from the definition of subdivision under paragraphs D-1 to D-6, or subsequent 
transfer of that entire lot by the original holder of the security interest or that person's 
successor in interest, does not create a lot for the purposes of this definition, unless 
the intent of the transferor is to avoid the objectives of this subchapter. 
Sec. 2.  30-A MRSA §4402, sub-§4, as amended by PL 1997, c. 323, §2, is 
further amended to read: 
4.  Airports with an approved airport layout plan.  Any airport with an airport 
layout plan that has received final approval from the airport sponsor, the Department of 
Transportation and the Federal Aviation Administration; or 
Sec. 3.  30-A MRSA §4402, sub-§5, ¶D, as enacted by PL 1997, c. 323, §3, is 
amended to read: 
D.  That has been the subject of an enforcement action or order, and record of the 
action or order was recorded in the appropriate registry of deeds.; or 
Sec. 4.  30-A MRSA §4402, sub-§6 is enacted to read: 
6.  Division of new or existing structures.  A division of a new or existing structure 
into 3 or more dwelling units whether the division is accomplished by sale, lease, 
development or otherwise in a municipality where the project is subject to municipal site 
plan review in accordance with Title 38, section 488, subsection 19 or Title 38, section 
489-A. 
Sec. 5.  30-A MRSA §4406, sub-§1, ¶B, as enacted by PL 1989, c. 104, Pt. A, 
§45 and Pt. C, §10 and amended by c. 362, §2 and c. 769, §1, is further amended to read: 
B.  Whenever the initial approval or any subsequent amendment of a subdivision is 
based in part on the granting of a variance from any applicable subdivision approval 
standard, that fact must be expressly noted on the face of the subdivision plan to be 
recorded in the registry of deeds. 
(1)  In the case of an amendment, if no amended plan is to be recorded, a 
certificate must be prepared in recordable form and recorded in the registry of 
deeds.  This certificate must: 
(a)  Indicate the name of the current property owner; 
(b)  Identify the property by reference to the last recorded deed in its chain of 
title; and 
(c)  Indicate the fact that a variance, including any conditions on the variance, 
has been granted and the date of the granting. 
(2)  The variance is not valid until recorded as provided in this paragraph.  
Recording must occur within 90 days of the final subdivision approval or 
approval under Title 38, chapter 3, subchapter I, article 6, where applicable, 
whichever date is later, or the variance is void. 
SUMMARY 
This bill amends the laws governing subdivisions.  The bill exempts from the law 
governing subdivisions a division of a structure into 3 or more dwelling units in a 
municipality where the project is subject to municipal site plan review.  The bill amends 
the provision concerning when a municipal ordinance may have a definition of 
"subdivision" that conflicts with state law.  The bill removes the authority of a 
municipality to expand the definition of "subdivision" to include the division of a 
structure into commercial or industrial units.  The bill removes the requirement that 
variances from subdivision criteria be recorded in the registry of deeds within 90 days 
after final approval of a subdivision plan, but retains the requirement that the variance be 
recorded to be valid.  The bill repeals provisions under which leased dwelling units are 
not subject to subdivision review.