An Act to Limit
Maine Legislature, Session 132, LD 1498
Committee Amendment CA_A_H734 (House)
Amends: 5 MRSA §3205, 5 MRSA §13056-J, 30-A MRSA §4354

COMMITTEE AMENDMENT "f-\>> to H.P, 982, L,D. 1498, "An Act to Limit
Municipal Impact Fees on Housing Development"
Amend the bill by striking out the title and substituting the followmg:
'An Act to Address IVtaine's Housing Crisis by Limiting IVIunicipal Impact Fees on
Housing Development and Transferring Oversight of the Housing Opportunity
Program to the IMaine Office of Community Affairs'
Amend the bill by inserting after the title and before the enacting clause the following;
'Emergency preamble. Whereas, acts and resolves of the Legislature do not
become effective until 90 days after adjoumment unless enacted as emergencies; and
Whereas, the State is facmg a severe housing crisis, and to meet the goal of building
an additional 84,000 homes in the next 5 years to alleviate this crisis, housing production
in the State would need to roughly double its annual rate; and
Whereas, an array of changes needs to occur to address this crisis, starting with the
consolidation of efforts by the executive branch in this area; and
Whereas, transferring oversight of the Housing Opportunity Program from the
Department of Economic and Community Development is one. critical component in
focusing the State's efforts addressing this crisis; and
Whereas, delaying consolidation of efforts will further delay implementation of new
and ongoing legislative initiatives enacted in this Legislatoe and in the 131st Legislature;
and
Whereas, in the judgment of the Legislature, these facts create an emergency within
the meaning of the Constitution of Maine and requu-e the following legislation as
immediately necessary for the preservation of the public peace, health and safety; now,
therefore,'
Amend the bill by inserting after the enacting clause and before section 1 the following:
COMMITTEE AMENDMENT
COMMITTEE AMENDMENT " VC
COMMITTEE AMENDMENT " f^" to H,P, 982, L.D. 1498
'See. 1. 5 MRSA §3205, as enacted by PL 2023, c, 643, Pt, DD, §2, is amended to
read:
§3205. Acceptance and administration of funds
The office may accept, administer and expend funds, mcluding but not limited to funds
from the Federal Government or from private sources, for purposes consistent with this
chapter. The director shall provide a report of the amount of any outside funding received
from private sources and its designated purpose to the Governor, the joint standing
committee of the Legislature having jurisdiction over housing matters and the joint
standing committee of the Legislature having jurisdiction over municipal matters on an
annual basis,
Sec. 2. 5 MRSA c. 310-C is enacted to read;
CHAPTER 310-C
HOUSING PLANMNG
§3217. Housing Opportunity Program
1. Proeram established; administration. The Housing Opportunity Program,
referred to in this section as "the program." is established within the Maine Office of
Community Affairs, established in section 3202 and referred to in this section as "the
office." The program must encouraee and support the development of additional housing
units in the State, includme housing units that are affordable for low-income and mQderate-
income individuals and housing units targeted to community workforce housine needs. The
office shall administer the proei'am and provide technical and financial assistance to
support communities implementing zoning and land use-related policies necessary to
support increased housing develooment. The program must suoport regional approaches
and municipal model ordinance development and encourage policies that support increased
housing density, where feasible. to protect workine lands and natural lands,
2. Housing OpDortunitv Fund. The Housine OoDortumtv Fund. referred to in this
section as "the fund." is established as a fund within the office for the purpose ofprovidine
8 funds for the program, The fund consists of money aom'om'iated to the iundby the
Leeislatoe and any funds received by the office for the purposes of the program.
A, The office shall solicit applications for grants from the fund through a competitive
application process. Grants may be awarded to experienced service providers and
municipalities to;
d) Support municipal ordinance development, provide technical assistance and
encourage public participation and community engagement in the process of
5 increasine housing ODUortunities;
(2) Provide community housing plannme services to municipalities to support the
7 creation of housing development plans, including municipal ordmances, and policy
amendments to support those plans; and
(3) Provide community housing implementation services.
COMMITTEE AMENDMENT
"^v"> i
COMMITTEE AMENDMENT "^" to H,P. 982, L,D,1498
Programs receiving grants under subparagraph d) may encouraee regional
coordination between municipalities.
Grants awarded must be for a period of up to 3 years, with required proei'ess reports
each year.
R The office shall provide technical assistance, housing policv development and
guidance directly to regional groups, municroalities and other housine stakeholders,, to
the extent feasible with available resources. This may include. but is not limited to,
assisting municipalities with information about available grant opportunities, sharme
best practices from jurisdictions inside and outside of the State, orovidine mQdel
language for municipal ordinances and policies and providing information to the
general public, which may support local and statewide nolicy changes meant to
increase the supply of housing,
3. Program evaluation. A recipient of grant funds throueh the prQgram shall
cooperate with the office in perfonnine evaluations and specific reporting requirements.
4.. Rulemaking, The office may. estabUsh_by rule the criteria for_eligibility for grants
from the proeram and the process for applymg to the program, Rules adopted pursuant to
this subsection are routme_technical mles as defined^^^^m^^^^ 5. chapter 375, subchapter 2-
A,
Sec. 3. 5 MRSA §13056-J, as enacted by PL 2021,c. 635, Ft, U, §1, is repealed.'
Amend the bill by striking out all of section 2 and inserting the following:
'See. 2. 30-A MRSA §4354, sub-§l, as amended by PL 1999,c.776,§11, is further
amended to read;
1. Construction or fees may be required. The requirements may include
construction of ©apitel infrastructure improvements or impact fees instead of eepitri
infrastructure improvements including the expansion or replacement of existing
infrastructure facilities and the construction of new mfi'astructure facilities. A municipality
shall demonstrate that a reguired mfrastructure improvement is necessarY to accommodate
the development and that the impact fee is based on the cost of the infrastructure
improvement and proportionate to the development's use of the mfrastructure
improvement.
A, For the purposes of this subsection, infrastructure facilities include, but are not
limited to:
(1) Waste water collection and treatment facilities;
(2) Municipal water facilities;
(3) Solid waste facilities;
(4) Public safety equipment and facilities;
(5) Roads and traffic control devices;
(6) Parks and other open space or recreational areas; and
(7) School facilities.'
Amend the bill in section 3 in paragraph C in the 2nd Ime (page 1, line 26 in L.D.) by
striking out the following; "use" and mserting the following: 'use encumber'
COMMITTEE AMENDMENT
COMMITTEE AMENDMENT "j
COMMITTEE AMENDMENT "/f" to H.P. 982, L.D. 1498
Amend the bill in section 3 in paragraph C in the 2nd line (page 1, line 26 in L.D.) by
striking out the following: "180" and insertmg the following: '360'
Amend the bill by inserting after section 3 the following:
'See. 4. Transition provisions; Housing Opportunity Program. The following
provisions govern the transition of the Housing Opportunity Program from the Department
of Economic and Community Development to the Maine Office of Community Affairs
established in the Maine Revised Stahites, Title 5, section 3202.
1, The Maine Office of Community Affairs is the successor in every way to the powers,
duties and functions of the Department of Economic and Community Development
regarding the Housing Opportunity Program.
2, All existing rules, regulations and procedures in effect, in operation or adopted in or
by the Department of Economic and Community Development regarding the Housing
Opportunity Program or any of its administrative units or officers are in effect and continue
in effect until rescinded, revised or amended by the Maine Office of Community Affairs.
3. All existing contracts, agreements and compacts currently in effect in the
Department of Economic and Community Development regarding the Housing
Opportunity Program continue in effect.
4. All records, property and equipment previously belonging to or allocated for the use
of the Housing Opportunity Program in the Department of Economic and Community
Development become, on the effective date of this Act, part of the property of the Maine
Office of Community Affairs.
5, All existing forms, licenses, letterheads and similar items bearing the name of or
referring to the Housing Opportunity Program may be used by the Maine Office of
Community Affairs until existing supplies of those items are exhausted,
Sec. 5. Appropriations and allocations. The following appropriations and
allocations are made.
ECONOMIC AND COMMUNITY DEVELOPMENT, DEPARTMENT OF
Housing Opportunity Program Z336
Initiative: Continues and makes permanent 2 Public Service Coordinator H positions
previously continued by Public Law 2023, chapter 412 and previously established by
Public Law 2021, chapter 63 5 and reduces All Other to fund the positions,
GENERAL FUND
3 POSITIONS - LEGISLATWE COUNT
Personal Services
All Other
3637 GENERAL FUND TOTAL $0 $0
8 Housing Opportunity Program Z336
Initiative; Transfers All Other funding from the Housing Opportunity Program within the
Department of Economic and Community Development to the Housing Opportunity
Program withm the Maine Office of Community Affairs within the same fund to provide
COMMITTEE AMENDMENT
2025-26
2,000
$327,236
($327,236)
2026-27
2,000
$340,694
($340,694)
<ff^ COMMITTEE AMENDMENT "f\ " to H.P, 982, L.D, 1498
coordinated and efficient technical assistance and funding in partnership with communities.
across the State,
GENERAL FUND 2025-26 2026-27
AllOther ($2,060,118) ($2,046,660)
GENERAL FUND TOTAL ($2,060,118) ($2,046,660)
Housing Opportunity Program Z336
Initiative; Transfers 2 Public Service Coordmator II positions from the Housing
Opportunity Program within the Department of Economic and Community Development
to the Housing Opportunity Program within the Maine Office of Community Affairs within
the same fund to provide coordinated and efficient technical assistance and funding in
partnership with communities across the State, Two authorized positions and any
incumbent personnel as of July 1, 2025 in the Department of Economic and Community
Development are transferred to the Maine Office of Community Affairs, All transferred
positions, including those currently unclassified, are classified positions at the Maine
Office of Community Affairs. The designation of each position as either confidential or
bargaining unit is based on the classification of the position, Those employees retain their
accrued vacation and sick leave balances,
GENERAL FUND 2025-26 2026-27
POSITIONS - LEGISLATFVE COUNT (2.000) (2,000)
Personal Services ($327,236) ($340,694)
GENERAL FUND TOTAL ($327,236) ($340,694)
ECONOMIC AND COMMUNITY
DEVELOPMENT, DEPARTMENT OF
DEPARTMENT TOTALS 2025-26 2026-27
GENERAL FUND ($2,387,354) ($2,387,354)
DEPARTMENT TOTAL - ALL FUNDS ($2,387,354) ($2,387,354)
MAINE OFFICE OF COMMUNHY AFFAIRS
Housing Opportunity Program Z336
Initiative; Transfers All Other funding from the Housing Opportunity Program within the
Department of Economic and Community Development to the Housing Opportunity
Program within the Maine Office of Community Affau-s within the same fund to provide
coordinated and efficient technical assistance and fundmg in partnership with communities
across the State,
GENERAL FUND 2025-26 2026-27
AllOther $2,060,174 $2,046,718
GENERAL FUND TOTAL $2,060,174 $2,046,718
Housing Opportunity Program Z336
COMMITTEE AMENDMENT
•A"
COMMITTEE AMENDMENT "/+"' to H,P, 982, L.D, 1498
Initiative: Transfers 2 Public Service Coordinator H positions from the Housing
Opportunity Program within the Department of Economic and Community Development
to the Housing Opportunity Program within the Maine Office of Community Affau-s within
the same fund to provide coordinated and efficient technical assistance and funding in
partnership with communities across the State, Two authorized positions and any
incumbent personnel as of July 1, 2025 in the Department of Economic and Community
Development are transferred to the Maine Office of Community Affairs, All transferred
positions, including those currently unclassified, are classified positions at the Maine
Office of Community Affairs, The designation of each position as either confidential or
bargaining unit is based on the classification of the position, Those employees retain their
accmed vacation and sick leave balances,
GENERAL FUND 2025-26 2026-27
POSITIONS - LEGISLATIVE COUNT 2.000 2.000
Personal Services $327,180 $340,636
GENERAL FUND TOTAL $327,180 $340,636
Maine Office of Community Affairs Z396
Initiative: Establishes one Secretary Specialist position and one Public Service Coordinator
I position to provide administrative support for the Maine Office of Community Affairs
and provides funding for related All Other costs,
GENERAL FUND
POSITIONS - LEGISLATIVE COUNT
Personal Services
All Other
GENERAL FUND TOTAL $232,202 $248,902
MAINE OFFICE OF COMMUNITY AFFAIRS
DEPARTMENT TOTALS
GENERAL FUND
DEPARTMENT TOTAL - ALL FUNDS
SECTION TOTALS
GENERAL FUND
SECTION TOTAL-ALL FUNDS $232,202 $248,902
Amend the bill by adding before the summary the following:
'Emergency clause. In view of the emergency cited in the preamble, this legislation
takes effect when approved,'
COMMITTEE AMENDMENT
2025-26
2.000
$214,376
$17,826
2026-27
2.000
$231,076
$17,826
2025-26
$2,619,556
$2,619,556
2025-26
$232,202
2026-27
$2,636,256
$2,636,256
2026-27
$248,902
.flw COMMITTEE AMENDMENT " i
COMMITTEE AMENDMENT "^'" to H,P, 982, L.D. 1498
Amend the bill by relettering or renumbering any nonconsecutive Part letter or section
number to read consecutively.
SUMMARY
This amendment changes the title of the bill and adds an emergency preamble and
emergency clause. The amendment amends the time within which a municipality must
encumber an impact fee from 180 days, as proposed in the bill, to 360 days after receipt,
The amendment changes "capital improvements" to "infrastruchire improvements"
throughout the provisions of law amended in the bill to provide consistency. The
amendment removes the limitation proposed in the bill that impact fees must be related to
infrastructure improvements on land or property that directly abuts the development. The
amendment repeals the provisions of law that established the Housing Opportunity
Program within the Department of Economic and Community Development and
establishes the program in the Maine Office of Community Affairs. The amendment
includes an appropriations and allocations section to accomplish this transfer.
FISCAL NOTE REQUIRED
(See attached)
COMMITTEE AMENDMENT
Approved: 05/20/25
JL.RL-
LD 1498 LR 2143(02)
An Act to Limit JVIunicipal Impact Fees on Housing Development
Fiscal Note for Bill as Amended by Committee Amendment
Committee: Housing and Economic Development
Fiscal Note Required: Yes
•^^
Fiscal Note
Projections Projections
FY 2025-26 FY 2026-27 FY 2027-28 FY 2028-29
Net Cost (Savings)
General Fund $232,202 $248,902 $271,467 $294«60
Appropriations/AlIocations
General.Fund $232,202 $248,902 $271,467 $294,860
Fiscal Detail and Notes
This bj.11 includes General Fund appropriations to the Department of Economic and Community Development (DECD)
of $327,236 in fiscal year 2025-26 and $340,694 in fiscal year 2026-27 to establish 2 Public Service Coordinator II
positions within the Housing Opportunity Program and transfers All Other funding to Personal Services to fund the
position, It also repeals the Housing Opportunity Program within DECD and transfers the program and its funding of
$2,387,354 in fiscal year 2025-26 and $2,387,354 in fiscal year 2026-27 to the Office of Community Affairs. There is
no net General Fund cost in the 2026-2027 biennium as a result of these initiatives.
The bill also includes General Fund appropriations to the Maine Office of Community Affairs of $232,202 in fiscal
year 2025-26 and $248,902 in fiscal year 2026-27 to establish one Secretary Specialist position and one Public
Service Coordinator I position to provide administrative support for the office and provides funding for related All
Other costs.
These initiatives are also included in LD 210, the 2026-2027 biemiial budget. The fiscal impact of this bill, as well as
the General Fund appropriations included in this bill, may need to be adjusted based on final legislative actions on LD
210.
LR2143(02) - Fiscal Note - Page 1 of 1