An Act to Require Increased Housing Density or Lower Minimum
Maine Legislature, Session 132, LD 1926
Committee: Housing and Economic Development
Sponsors: STOVER, BALDACCI, FECTEAU, DAUGHTRY
Amends: 30-A MRSA §4364-D

Legislative Document
No. 1926
H.P. 1287
House of Representatives, May 6, 2025
An Act to Require Increased Housing Density or Lower Minimum 
Lot Sizes for Workforce Housing
Reference to the Committee on Housing and Economic Development suggested and 
ordered printed.
ROBERT B. HUNT
Clerk
Presented by Representative STOVER of Boothbay.
Cosponsored by Senator BALDACCI of Penobscot and
Representatives: ANKELES of Brunswick, COPELAND of Saco, Speaker FECTEAU of 
Biddeford, GERE of Kennebunkport, MALON of Biddeford, ROEDER of Bangor, Senators: 
President DAUGHTRY of Cumberland, TIPPING of Penobscot.
Be it enacted by the People of the State of Maine as follows:
Sec. 1.  30-A MRSA §4364-D is enacted to read:
§4364-D.  Workforce housing development
Notwithstanding any provision of law to the contrary, for a workforce housing 
development approved on or after the implementation date, this section applies.  
1.  Definitions.  As used in this section, unless the context otherwise indicates, the 
following terms have the following meanings. 
A. "Alternative minimum lot size" means a minimum lot size that is less than the 
minimum lot size required by statute or municipal ordinance. 
B. "Area median income" means the median income for an 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. 
C. "Implementation date" means January 1, 2026 for municipalities for which 
ordinances may be enacted by the municipal officers without further action or approval 
by the voters of the municipality and July 1, 2026 for all other municipalities.
D. "Workforce housing development" means a housing development with at least 5 
dwelling units in which at least 50% of the dwelling units are workforce housing units. 
E. "Workforce housing unit" means a dwelling unit that is offered for sale or rent to an 
individual whose income is less than 220% of the area median income. 
2.  Density increases for workforce housing developments.  A municipality shall 
allow workforce housing developments wherever single-family or multifamily residential 
housing is allowed.  A municipality shall allow a density increase for workforce housing 
developments as follows: 
A. For a workforce housing development in which workforce housing units are 
available for rent or sale only to households whose income is between 80% and 100% 
of the area median income, a dwelling unit density increase of at least 75% of the base 
density that is otherwise allowed in the location.  At least 50% of the increase in the 
number of units must be sold or rented to households whose income is within the limits 
set out in this paragraph; 
B. For a workforce housing development in which workforce housing units are 
available for rent or sale only to households whose income is between 101% and 120% 
of the area median income, a dwelling unit density increase of at least 60% of the base 
density that is otherwise allowed in the location.  At least 50% of the increase in the 
number of units must be sold or rented to households whose income is within the limits 
set out in this paragraph; 
C. For a workforce housing development in which workforce housing units are 
available for rent or sale only to households whose income is between 121% and 180% 
of the area median income, a dwelling unit density increase of at least 45% of the base 
density that is otherwise allowed in the location.  At least 50% of the increase in the 
number of units must be sold or rented to households whose income is within the limits 
set out in this paragraph; and 
D. For a workforce housing development in which workforce housing units are 
available for rent or sale only to households whose income is between 181% and 220% 
of the area median income, a dwelling unit density increase of at least 30% of the base 
density that is otherwise allowed in the location.  At least 50% of the increase in the 
number of units must be sold or rented to households whose income is within the limits 
set out in this paragraph. 
A municipality may not require more than one off-street parking space for every 3 
workforce housing development units.
3.  Density increase; blended percentage.  When a workforce housing development 
includes multiple dwelling units at different levels of income restriction, the municipality 
in which the development is located shall allow the workforce housing development to 
apply a blended percentage to determine the overall density increase permitted.  The 
blended percentage must be determined by the mean density increase percentage of all 
workforce housing units in the development. 
4.  Alternative minimum lot size.  An alternative minimum lot size is allowed for a 
workforce housing development located where single-family or multifamily dwelling units 
are allowed when the alternative minimum lot size results in a greater number of dwelling 
units in the development than would result from the density increase allowed under 
subsection 2, as follows: 
A. For a workforce housing development in which workforce housing units are 
available for rent or sale only to households whose income is between 80% and 100% 
of the area median income, an alternative minimum lot size of at least 90% less than 
the lot size otherwise allowed in the location; 
B. For a workforce housing development in which workforce housing units are 
available for rent or sale only to households whose income is between 101% and 120% 
of the area median income, an alternative minimum lot size of at least 75% less than 
the lot size otherwise allowed in the location; 
C. For a workforce housing development in which workforce housing units are 
available for rent or sale only to households whose income is between 121% and 180% 
of the area median income, an alternative minimum lot size of at least 65% less than 
the lot size otherwise allowed in the location; and 
D. For a workforce housing development in which workforce housing units are 
available for rent or sale only to households whose income is between 181% and 220% 
of the area median income, an alternative minimum lot size of at least 50% less than 
the lot size otherwise allowed in the location. 
5.  Municipal regulation.  A workforce housing development must comply with 
municipal ordinances for setbacks, height limitations and other requirements that are not 
unreasonably restrictive of implementing the intent of this section, including shoreland 
zoning and water and wastewater services.  An owner of the workforce housing 
development who complies with section 4364, subsection 5 meets municipal requirements 
for water and wastewater services.
6.  Workforce income requirement.  A potential tenant or purchaser of a workforce 
housing unit must meet, at the time of tenancy or date of purchase, the applicable income 
limitations set out in subsections 2 and 4.  A tenant or purchaser of a workforce housing 
unit may not be required to vacate or sell the workforce housing unit if the tenant's or 
purchaser's future income exceeds the area median income requirement imposed at the time 
of rental or purchase. 
The income requirement does not apply to units within a workforce housing development 
that are not designated as workforce housing units. 
7.  Calculation of density, size or number.  Determination of compliance with 
municipal requirements that are based, in whole or in part, on the size of the workforce 
housing development structure or the number of units or lots in a workforce housing 
development must be based on the size of the structure or number of units or lots prior to a 
dwelling unit density increase under subsection 2 or an alternative minimum lot size 
allowance under subsection 4. 
8.  Compliance with state or local requirements.  Notwithstanding any provision of 
law to the contrary, a workforce housing development that receives a density increase 
pursuant to this section must be considered in compliance with any state or local 
requirement that a certain number or percentage of units in a housing development be 
affordable housing units as defined by the state or local requirement. 
9.  Declaration of restrictive covenant.  The owner of a workforce housing 
development shall record with the appropriate registry of deeds a declaration of restrictive 
covenant, on a form developed by the Maine State Housing Authority, that includes the 
following deed restrictions:
A. That, for a period of 30 years from the date the workforce housing development 
received all necessary state and local approvals or from the date the first workforce 
housing unit in the development is rented, whichever is later, all tenants of the 
workforce housing unit are subject to the income requirements of this section at the 
time of signing a rental agreement and the unit must be the tenant's primary residence; 
B. That, for a period of 30 years from the date the workforce housing development 
received all necessary state and local approvals or from the date the first workforce 
housing unit in the development is sold, whichever is later, all purchasers of the 
workforce housing unit are subject to the income requirements of this section and the 
unit must be the purchaser's primary residence; and 
C. That the municipality in which the workforce housing development is located has 
the right to enforce the restrictive covenants. 
The declaration must be filed within 30 days of receiving approval from the municipality 
that a density increase or alternative minimum lot size is granted for the workforce housing 
development or within 30 days of purchasing the real estate where the development will be 
located, whichever is later.  
10.  Record retention and compliance.  The owner, or agent of the owner, of a 
workforce housing unit designated as a workforce housing unit for rent shall keep records 
on file throughout the tenancy of a tenant, documenting the tenant's compliance with the 
income requirements of this section.  The purchaser of a workforce housing unit designated 
as a workforce housing unit for sale shall recite in the deed for the unit that by virtue of 
taking title the purchaser meets the income requirements of this section on the date of 
purchase. 
11.  Burden of proof; prima facie evidence.  In a civil action regarding the income 
restrictions of this section, the burden of proof is on the landlord or purchaser, as applicable, 
to prove that the tenant or purchaser met the income restrictions set out in subsections 2 
and 4 at the time of tenancy or purchase.  It is prima facie evidence that a tenant or purchaser 
meets the income restrictions if a 3rd-party organization, such as a municipal housing 
authority, bank, credit union or mortgage broker, provides written confirmation of the 
tenant's or purchaser's income at the time of tenancy or purchase.  A challenge to the written 
confirmation may be successful only if evidence proves beyond a reasonable doubt that the 
tenant or purchaser did not meet the income requirements of this section.  A cause of action 
is not available against a landlord or purchaser of a workforce housing unit for prior tenants 
or prior owners of the workforce housing unit.
SUMMARY
This bill requires municipalities to allow for increased housing density or lower 
minimum lot sizes for housing developments rented or sold to households earning less than 
220% of the median income for the area as defined by the United States Department of 
Housing and Urban Development.  The bill requires that the owner of a housing 
development with a housing density or minimum lot size adjustment under the bill file in 
the appropriate registry of deeds a declaration of restrictive covenant that requires the units 
in the development to be rented or sold in accordance with the income limitations in the 
bill for a period of 30 years.
The bill requires a municipality to determine compliance with requirements applicable 
to the structure or number of lots or units based on the size of the structure or number of 
lots or units prior to a dwelling unit increase or an alternative minimum lot size allowance.  
It provides that a workforce housing development that receives a density increase is in 
compliance with any state or local requirement that a certain number or percentage of units 
be affordable housing units as defined by the state or local requirement.