An Act Enabling Municipalities to Protect Tenants and Stabilize
Maine Legislature, Session 132, LD 1534
Committee: Housing and Economic Development
Sponsors: BAILEY, GRAMLICH

Legislative Document
No. 1534
S.P. 618
In Senate, April 8, 2025
An Act Enabling Municipalities to Protect Tenants and Stabilize 
Rents
Reference to the Committee on Housing and Economic Development suggested and 
ordered printed.
DAREK M. GRANT
Secretary of the Senate
Presented by Senator BAILEY of York.
Cosponsored by Representative GRAMLICH of Old Orchard Beach and
Senator: TIPPING of Penobscot, Representatives: GERE of Kennebunkport, GOLEK of 
Harpswell, JULIA of Waterville, MALON of Biddeford, ROBERTS of South Berwick.
Be it enacted by the People of the State of Maine as follows:
Sec. 1.  30-A MRSA c. 187, sub-c. 7 is enacted to read:
SUBCHAPTER 7
MUNICIPAL REGULATION OF RESIDENTIAL DWELLING UNITS
§4459. Municipal opt-in
The provisions of this subchapter apply to a municipality if the municipality 
incorporates this subchapter by reference in the adoption of an ordinance or bylaw; in the 
amendment to or adoption of a charter provision; or in the adoption pursuant to a 
referendum.  Nothing in this subchapter limits the home rule authority of municipalities to 
adopt ordinances, bylaws or charter provisions on the same subject matter as this 
subchapter.
§4460.  Rent increase limits
A municipality may by adoption of an ordinance or bylaw; by amendment to or 
adoption of a charter provision; or by adoption pursuant to a referendum impose a limit on 
the amount of an annual rent increase for a residential dwelling unit within the municipality.  
A limit on an annual rent increase for a residential dwelling unit may not exceed the annual 
change in the Consumer Price Index, as defined in Title 25, section 1611, subsection 1-A, 
for the applicable area or 5% of the base rent, whichever is lower.
For purposes of this section, the rent amount in place 12 months prior to the date of 
adoption of the ordinance or bylaw; the amendment to or adoption of the charter provision; 
or adoption pursuant to a referendum is the base rent upon which an annual rent increase 
limit is calculated. If the residential dwelling unit was vacant 12 months prior to the date 
of adoption of the ordinance or bylaw; the amendment to or adoption of the charter 
provision; or adoption pursuant to a referendum, the last rent amount charged is the base 
rent. If there was no previous rent amount, or if no rent has been charged for at least the 
previous 5 years since adoption of the ordinance or bylaw; the amendment to or adoption 
of the charter provision; or adoption pursuant to a referendum, the rent amount the owner, 
landlord or property manager of the residential dwelling unit first charged is the base rent.
§4460-A. Evictions based on just cause
A municipality may by adoption of an ordinance or bylaw; by amendment to or 
adoption of a charter provision; or by adoption pursuant to a referendum require that an 
eviction or refusal by the owner, landlord or property manager of a residential dwelling 
unit to renew a lease be based on just cause. For purposes of this section, "just cause" 
includes:
1. Nonpayment. A tenant failing to pay rent;
2. Substantial violation. A tenant committing a substantial violation of a material lease 
term or term of the tenancy;
3. Criminal activity. A tenant engaging in criminal activity that threatens the health 
and safety of other tenants or persons lawfully on the premises of the residential dwelling 
unit; and
4. Removal of unit from rental market. An owner seeking to remove the residential 
dwelling unit from the rental market in order to convert the residential dwelling unit into a 
cooperative or condominium, to demolish the residential dwelling unit, to convert the 
residential dwelling unit to nonresidential use or to occupy the residential dwelling unit as 
the owner's principal residence.
A municipality may further define "just cause" by ordinance, bylaw, charter provision 
or  referendum.
§4460-B. Exemptions
The following types of residential dwelling units within a municipality that adopts the 
provisions of this subchapter are exempt from sections 4460 and 4460-A:
1. Owner-occupied units.  Residential dwelling units in owner-occupied buildings 
with 4 or fewer residential dwelling units;
2. Housing authority units.  Residential dwelling units subject to regulation by a 
housing authority as defined in section 4702, subsection 2, except that occupancy by a 
tenant receiving housing assistance under 42 United States Code, Section 1437f(o)(12) 
does not exempt a residential dwelling unit otherwise subject to the provisions of section 
4460 or 4460-A;
3. Dormitories.  Dormitories owned or managed by an educational institution where 
sleeping accommodations are provided in single rooms or in a series of closely associated 
rooms; and
4. Elderly residential care facilities. Facilities for the residential care of persons who 
are elderly.
Once annually, the owner, landlord or property manager of a residential dwelling unit 
shall provide a written notice to the tenant of an exempt residential dwelling unit citing the 
specific exemption for the residential dwelling unit under this section and the date an 
exemption expires, if any.
§4460-C. Reports
Beginning January 15, 2026, and annually thereafter, a municipality adopting the 
provisions of this subchapter pursuant to section 4459 shall provide a report to the Maine 
State Housing Authority and the Maine Office of Community Affairs.  The report must 
include the text of the ordinance, bylaw, charter provision or referendum adopting the 
provisions of this subchapter; any studies undertaken that informed the adoption of the 
ordinance, bylaw, charter provision or referendum; the number of residential dwelling units 
affected by the ordinance, bylaw, charter provision or referendum; and any other 
information or data considered relevant by the Maine State Housing Authority or the Maine 
Office of Community Affairs.
§4460-D.  Violations
Any violation of this subchapter is an unfair method of competition or an unfair or 
deceptive act or practice under Title 5, chapter 10.  Any person claiming a violation of this 
subchapter may pursue remedies under Title 5, chapter 10, and the Attorney General is 
authorized to bring an action or institute a proceeding under Title 5, section 209.
§4460-E. Other rights or protections
This subchapter may not be construed to interfere with any existing rights or 
protections afforded tenants under state or federal law.
SUMMARY
This bill permits a municipality to adopt an ordinance or bylaw; to amend or adopt a 
charter provision; or to adopt pursuant to a referendum rent increase limits and eviction 
protections.  It requires such a municipality to submit an annual report to the Maine State 
Housing Authority and the Maine Office of Community Affairs.  The bill establishes that 
a violation of the requirements established in the bill is an unfair method of competition or 
an unfair or deception act or practice pursuant to the Maine Unfair Trade Practices Act.