An Act to Increase Housing Capacity and Protect the Municipal Tax Base and Working Lands Reference to the Joint Select Committee on Housing suggested and ordered printed.
Maine Legislature, Session 131, LD 1257
Committee: Housing
Sponsors: CRAFTS, HICKMAN, ANKELES, DUCHARME, GEIGER, JAUCH, LANDRY, PLUECKER, POLEWARCZYK
Amends: 30-A MRSA §4301, 30-A MRSA §4401, 30-A MRSA §4402, 30-A MRSA §4403, 30-A MRSA §4404

Legislative Document
No. 1257
H.P. 805
House of Representatives, March 21, 2023
An Act to Increase Housing Capacity and Protect the Municipal Tax 
Base and Working Lands
Reference to the Joint Select Committee on Housing suggested and ordered printed.
ROBERT B. HUNT
Clerk
Presented by Representative CRAFTS of Newcastle.
Cosponsored by Senator HICKMAN of Kennebec and
Representatives: ANKELES of Brunswick, DUCHARME of Madison, GEIGER of Rockland, 
JAUCH of Topsham, LANDRY of Farmington, PLUECKER of Warren, POLEWARCZYK of 
Wiscasset.
Be it enacted by the People of the State of Maine as follows:
Sec. 1.  30-A MRSA §4301, sub-§1-D is enacted to read:
1-D.  Administrative reviewing authority.  "Administrative reviewing authority" 
means a municipal employee or other designee of a municipality.
Sec. 2.  30-A MRSA §4301, sub-§12, as enacted by PL 1989, c. 104, Pt. A, §45 
and Pt. C, §10, is amended to read:
12.  Municipal reviewing authority.  "Municipal reviewing authority" means the 
municipal planning board, agency or, office, or administrative reviewing authority or, if 
none, the municipal officers.
Sec. 3.  30-A MRSA §4401, sub-§2-C is enacted to read:
2-C.  Municipal site plan review.  "Municipal site plan review" means review under 
a municipal ordinance that sets forth a process for determining whether a development 
meets certain specified criteria, which must include criteria regarding storm water 
management, sewage disposal, water supply and vehicular access and that may include 
criteria regarding other environmental effects, layout, scale, appearance and safety.
Sec. 4.  30-A MRSA §4401, sub-§4, as amended by PL 2019, c. 174, §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 4 or more dwelling units within a 5-year 
period, the construction or placement of 3 4 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 4 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 sibling, child or 
grandchild related by blood, marriage or adoption.  A gift under this paragraph can not 
cannot 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.
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, 2021.  
Such a municipality must file its conflicting definition at the county registry of deeds 
by June 30, 2020 for the definition to remain valid for the grace period ending January 
1, 2021.  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. 5.  30-A MRSA §4402, sub-§4, as amended by PL 2017, c. 104, §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. 6.  30-A MRSA §4402, sub-§5, ¶D, as amended by PL 2017, c. 104, §3, is 
further 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. 7.  30-A MRSA §4402, sub-§6, as amended by PL 2019, c. 174, §2, is 
repealed.
Sec. 8.  30-A MRSA §4402, sub-§7 is enacted to read:
7.  Structures on single lots in designated growth areas.  The construction or 
placement of, or the division of an existing structure into, more than 3 but not more than 
dwelling units on a single lot located in a designated growth area within a municipality, 
as described in section 4349-A, subsection 1, paragraph A or B, where the project is subject 
to municipal site plan review.
Sec. 9.  30-A MRSA §4403, sub-§1, as enacted by PL 1989, c. 104, Pt. A, §45 and 
Pt. C, §10, is amended to read:
1.  Municipal reviewing authority.  The Except as provided in subsection 1-B, the 
municipal reviewing authority shall review all requests for subdivision approval.  On all 
matters concerning subdivision review, the municipal reviewing authority shall maintain a 
permanent record of all its meetings, proceedings and correspondence.
Sec. 10.  30-A MRSA §4403, sub-§1-B is enacted to read:
1-B.  Review by administrative reviewing authority.  Notwithstanding any provision 
of this section to the contrary, the administrative reviewing authority shall review an 
application for subdivision approval that proposes the construction or placement of, or the 
division of an existing structure into, more than 3 but not more than 18 dwelling units on a 
single lot in a designated growth area within a municipality, as described in section 4349-A, 
subsection 1, paragraph A or B, and, if the municipality has adopted an ordinance providing 
for municipal site plan review, the administrative reviewing authority shall review the 
application in accordance with the municipal site plan review process.
Sec. 11.  30-A MRSA §4404, sub-§19, as amended by PL 2003, c. 622, §3, is 
further amended to read:
19.  Impact on adjoining municipality.  For any proposed subdivision that crosses 
municipal boundaries, the proposed subdivision will not cause unreasonable traffic 
congestion or unsafe conditions with respect to the use of existing public ways in an 
adjoining municipality in which part of the subdivision is located; and
Sec. 12.  30-A MRSA §4404, sub-§20, as enacted by PL 2003, c. 622, §4 and 
amended by PL 2011, c. 657, Pt. W, §§5, 7 and amended by PL 2013, c. 405, Pt. A, §23, 
is amended by amending the first blocked paragraph to read:
For the purposes of this subsection, "liquidation harvesting" has the same meaning as in 
Title 12, section 8868, subsection 6 and "parcel" means a contiguous area within one 
municipality, township or plantation owned by one person or a group of persons in common 
or joint ownership.  This subsection takes effect on the effective date of rules adopted 
pursuant to Title 12, section 8869, subsection 14.; and
Sec. 13.  30-A MRSA §4404, sub-§21 is enacted to read:
21.  Designated rural areas.  The proposed subdivision is not located in an area 
identified and designated in the municipality's comprehensive plan as a rural area, unless 
the area is a designated growth area, as described in section 4349-A, subsection 1, 
paragraph A or B, or an area for which the municipality has adopted a plan governing the 
approval of subdivisions.
SUMMARY
This bill makes the following changes to the laws governing subdivisions.
1.  It removes from subdivision review any projects that would result in the construction 
or placement of, or the division of an existing structure into, 3 dwelling units on a single 
tract or parcel of land. Current law provides that any such projects that would result in 3 or 
more dwelling units may be subject to subdivision review.
2.  It removes from subdivision review any projects that would result in the construction 
or placement of, or the division of an existing structure into, more than 3 but not more than 
dwelling units on a single lot located in a designated growth area within a municipality 
where the project is subject to municipal site plan review.
3.  It adopts a definition for "administrative reviewing authority," which means a 
municipal employee or other designee of a municipality. It also provides that the 
administrative reviewing authority must review any subdivision application that proposes 
the construction or placement of, or the division of an existing structure into, more than 3 
but not more than 18 dwelling units on a single lot in a designated growth area and, if the 
municipality has adopted a municipal site plan review ordinance, the administrative 
reviewing authority must review the application in accordance with the municipal site plan 
review process.
4.  It requires a municipal reviewing authority, when reviewing an application for 
subdivision approval, to determine that the proposed subdivision is not located in an area 
identified and designated in the municipality's comprehensive plan as a rural area, unless 
the area is a designated growth area or an area for which the municipality has adopted a 
plan governing the approval of subdivisions.