An Act to Clarify Statewide Laws Regarding Affordable Housing and Accessory Dwelling Units Reference to the Joint Select Committee on Housing suggested and ordered printed.
Maine Legislature, Session 131, LD 1706
Committee: Housing
Sponsors: MALON, PIERCE, GATTINE, GERE, GOLEK, KUHN, RANA, SHEEHAN
Amends: 30-A MRSA §4364, 30-A MRSA §4364-A, 30-A MRSA §4364-B

Legislative Document
No. 1706
H.P. 1095
House of Representatives, April 18, 2023
An Act to Clarify Statewide Laws Regarding Affordable Housing 
and Accessory Dwelling Units
Reference to the Joint Select Committee on Housing suggested and ordered printed.
ROBERT B. HUNT
Clerk
Presented by Representative MALON of Biddeford.
Cosponsored by Senator PIERCE of Cumberland and
Representatives: GATTINE of Westbrook, GERE of Kennebunkport, GOLEK of Harpswell, 
KUHN of Falmouth, RANA of Bangor, SHEEHAN of Biddeford.
Be it enacted by the People of the State of Maine as follows:
Sec. 1.  30-A MRSA §4364, sub-§1, as enacted by PL 2021, c. 672, §4, is amended 
to read:
1.  Definition.  For the purposes of this section, "affordable housing development" 
means:
A.  For rental housing, a development in which a household whose income does not 
exceed 80% of the median income for the area as defined by the United States 
Department of Housing and Urban Development under the United States Housing Act 
of 1937, Public Law 75-412, 50 Stat. 888, Section 8, as amended, can afford a majority 
of the units that the developer designates as affordable without spending more than 
30% of the household's monthly income on housing costs; and
B.  For owned housing, a development in which a household whose income does not 
exceed 120% of the median income for the area as defined by the United States 
Department of Housing and Urban Development under the United States Housing Act 
of 1937, Public Law 75-412, 50 Stat. 888, Section 8, as amended, can afford a majority 
of the units that the developer designates as affordable without spending more than 
30% of the household's monthly income on housing costs.
Sec. 2.  30-A MRSA §4364, sub-§3, as enacted by PL 2021, c. 672, §4, is amended 
to read:
3.  Long-term affordability.  Before approving granting final approval of an 
affordable housing development, including but not limited to issuing an occupancy permit, 
a municipality shall require that the owner of the affordable housing development have 
executed a restrictive covenant, recorded in the appropriate registry of deeds, for the benefit 
of and enforceable by a party acceptable to the municipality, to ensure that for at least 30 
years after completion of construction:
A.  For rental housing, occupancy of all of the units designated affordable in the 
development will remain limited to households at or below 80% of the local area 
median income at the time of initial occupancy; and
B.  For owned housing, occupancy of all of the units designated affordable in the 
development will remain limited to households at or below 120% of the local area 
median income at the time of initial occupancy.
Sec. 3.  30-A MRSA §4364, sub-§6, as enacted by PL 2021, c. 672, §4, is amended 
to read:
6.  Subdivision requirements.  This section may not be construed to exempt a 
subdivider from the requirements for division of a tract or parcel of land in accordance with 
subchapter 4.
Sec. 4.  30-A MRSA §4364-A, sub-§1, as enacted by PL 2021, c. 672, §5, is 
amended to read:
1.  Use allowed.  Notwithstanding any provision of law to the contrary, except as 
provided in Title 12, chapter 423-A, for any area in which housing is residential uses are 
allowed, including as a conditional use, a municipality shall allow structures with up to 2 
dwelling units per lot if that lot does not contain an existing dwelling unit, except that a 
municipality shall allow up to 4 dwelling units per lot if that lot does not contain an existing 
dwelling unit and the lot is located in a designated growth area within a municipality 
consistent with section 4349-A, subsection 1, paragraph A or B or if the lot is served by a 
public, special district or other centrally managed water system and a public, special district 
or other comparable sewer system in a municipality without a comprehensive plan.
A municipality shall allow on a lot with one existing dwelling unit the addition of up to 2 
dwelling units: one additional dwelling unit within or attached to an existing structure or 
one additional detached dwelling unit, or one of each.
A municipality may allow more units than the number required to be allowed by this 
subsection.
Sec. 5.  30-A MRSA §4364-A, sub-§2, ¶A, as enacted by PL 2021, c. 672, §5, is 
amended to read:
A.  If more than one dwelling unit has been constructed on a lot as a result of the 
allowance under this section or section 4364-B, the lot is not eligible for any additional 
increases in density except as allowed by the municipality.
Sec. 6.  30-A MRSA §4364-A, sub-§3, as enacted by PL 2021, c. 672, §5, is 
amended to read:
3.  General requirements.  A municipal ordinance may not establish dimensional 
requirements or, including but not limited to setback requirements, for dwelling units 
allowed under this section that are greater than dimensional requirements or, including but 
not limited to setback requirements, for single-family housing units, except that a municipal 
ordinance may establish requirements for a lot area per dwelling unit as long as the required 
lot area for subsequent units on a lot is not greater than the required lot area for the first 
unit.
Sec. 7.  30-A MRSA §4364-A, sub-§7, as enacted by PL 2021, c. 672, §5, is 
amended to read:
7.  Subdivision requirements.  This section may not be construed to exempt a 
subdivider from the requirements for division of a tract or parcel of land in accordance with 
subchapter 4.
Sec. 8.  30-A MRSA §4364-B, sub-§1, as enacted by PL 2021, c. 672, §6, is 
amended to read:
1.  Use permitted.  Except as provided in Title 12, chapter 423‑A, a municipality shall 
allow an accessory dwelling unit to be located on the same lot as a single-family dwelling 
unit in any area in which housing is residential uses are permitted, including as a conditional 
use.  
Sec. 9.  30-A MRSA §4364-B, sub-§3, as enacted by PL 2021, c. 672, §6, is 
amended to read:
3.  Zoning requirements.  With respect to accessory dwelling units, municipal zoning 
ordinances must comply with the following conditions:
A.  At least one accessory dwelling unit must be allowed on any lot where a single-
family dwelling unit is the principal structure; and
B.  If more than one accessory dwelling unit has been constructed on a lot as a result 
of the allowance under this section or section 4364‑A, the lot is not eligible for any 
additional increases in density except as allowed by the municipality.; and
C.  An accessory dwelling unit is allowed on a lot that does not conform to the 
municipal zoning ordinance if the accessory dwelling unit does not further increase the 
nonconformity.
Sec. 10.  30-A MRSA §4364-B, sub-§4, ¶B, as corrected by RR 2021, c. 2, Pt. A, 
§110, is amended to read:
B.  For an accessory dwelling unit located within the same structure as a single-family 
dwelling unit or attached to or sharing a wall with a single-family dwelling unit, the 
setback requirements and dimensional requirements, including but not limited to 
setback requirements, must be the same as the setback requirements and dimensional 
requirements, including but not limited to setback requirements, of the single-family 
dwelling unit, except for an accessory dwelling unit permitted in an existing accessory 
building or secondary building or garage as of July 1, 2023, in which case the requisite 
setback requirements for such a structure apply.  A municipality may establish more 
permissive dimensional and setback requirements, including but not limited to setback 
requirements, for an accessory dwelling unit.
Sec. 11.  30-A MRSA §4364-B, sub-§4, ¶D is enacted to read:
D.  An accessory dwelling unit that was not built with municipal approval must be 
allowed if the accessory dwelling unit otherwise meets the requirements for accessory 
dwelling units of the municipality and under this section.
Sec. 12.  30-A MRSA §4364-B, sub-§5, as enacted by PL 2021, c. 672, §6, is 
amended to read:
5.  Shoreland zoning.  An Notwithstanding subsection 4, paragraph A, an accessory 
dwelling unit must comply with shoreland zoning requirements established by the 
Department of Environmental Protection under Title 38, chapter 3 and municipal shoreland 
zoning ordinances.
Sec. 13.  30-A MRSA §4364-B, sub-§8, ¶A, as enacted by PL 2021, c. 672, §6, is 
amended to read:
A.  Establish an application and permitting process for accessory dwelling units that 
does not require planning board approval;
Sec. 14.  30-A MRSA §4364-B, sub-§10, as enacted by PL 2021, c. 672, §6, is 
amended to read:
10.  Subdivision requirements.  This section may not be construed to exempt a 
subdivider from the requirements for division of a tract or parcel of land in accordance with 
subchapter 4.
SUMMARY
This bill makes changes to provisions of law regarding affordable housing and 
accessory dwelling units by:
1. Removing from the definition of "affordable housing development" that the 
developer designates the development as affordable;
2. Clarifying that municipal approval of an affordable housing development for 
purposes of timing of the execution of a restrictive covenant means granting final approval, 
including issuing an occupancy permit;
3. Clarifying that setback requirements are just one type of dimensional requirements;
4. Changing language stating where housing is allowed or permitted to refer to where 
residential uses, including as a conditional use, are allowed or permitted;
5. Allowing accessory dwelling units on nonconforming lots, including in shoreland 
zones, if the accessory dwelling units do not further increase the nonconformity;
6. Allowing accessory dwelling units built without municipal approval, including 
accessory dwelling units in shoreland zones, if the accessory dwelling units otherwise meet 
state and municipal requirements for accessory dwelling units; and
7. Allowing municipalities to approve accessory dwelling units through a permitting 
process that does not require planning board approval.