An Act to Amend Maine's Municipal Subdivision Standards to
Maine Legislature, Session 132, LD 1396
Committee: Housing and Economic Development
Sponsors: ROBERTS
Amends: 30-A MRSA §4401, 30-A MRSA §4402

Legislative Document
No. 1396
H.P. 918
House of Representatives, April 1, 2025
An Act to Amend Maine's Municipal Subdivision Standards to 
Increase the Number of Dwelling Units on or Divisions of a Tract of 
Land Before the Tract is Considered a Subdivision
Reference to the Committee on Housing and Economic Development suggested and 
ordered printed.
ROBERT B. HUNT
Clerk
Presented by Representative ROBERTS of South Berwick.
Cosponsored by Representatives: DUCHARME of Madison, HASENFUS of Readfield, 
JULIA of Waterville, MALON of Biddeford, MORRIS of Turner, SACHS of Freeport.
Be it enacted by the People of the State of Maine as follows:
Sec. 1.  30-A MRSA §4401, sub-§4, as amended by PL 2023, c. 79, §1, is further 
amended to read:
4.  Subdivision.  "Subdivision" means the division of a tract or parcel of land into 3 5 
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 5 or more dwelling units within a 5-year 
period, the construction or placement of 3 5 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 5 or more dwelling units within a 5-year period.
A.  In determining whether a tract or parcel of land is divided into 3 5 or more lots, the 
first dividing 3 dividings of the tract or parcel is are considered to create the first 2 4 
lots and the next dividing of either any of these first 2 4 lots, by whomever 
accomplished, is considered to create a 3rd 5th 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, 
including a division of land or creation of a unit or lot that does not meet the 
definition of "subdivision" in this subsection.
B.  The dividing of a tract or parcel of land and the lot or lots so made, which if the 
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 or other applicable municipal requirements including road or safety 
standards.
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, 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 by deeds in the form of a boundary adjustment agreement or 
reciprocal deeds between the abutting land owners 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 
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.
D-7.  A division accomplished by the creation of an accessory dwelling unit, whether 
attached or detached from an existing dwelling unit, does not create a lot for the 
purposes of this definition.
E.  The division of a tract or parcel of land into 3 5 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 if 
the ordinance does not conflict with this section or prevent the creation of a housing 
unit by defining the unit as a lot for purposes of review by a local legislative body, 
except in the limited manner prescribed in this subchapter.
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 
2026.  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 D-7, 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.  A mortgage, pledge or other 
instrument of hypothecation against a dwelling unit or a portion of real property within 
a parcel that is otherwise defined by this section as a lot is not a lot for purposes of this 
section. For purposes of this paragraph, "hypothecation" means a pledge of collateral 
by a debtor to secure a debt or a loan.
J.  Unless the intent of a transferor is to avoid the objectives of this subchapter, the 
division of a tract or parcel of land accomplished by the transfer of any interest in the 
land to a holder does not create a lot or lots for purposes of this definition if:
(1)  The transferred interest, as expressed by conservation easement, binding 
agreement, declaration of trust or otherwise, is to be permanently held for one or 
more of the following conservation purposes:
(a)  Retaining or protecting the natural, scenic or open space values of the land;
(b)  Ensuring the availability of the land for agricultural, forest, recreational or 
open space use;
(c)  Protecting natural resources; or
(d)  Maintaining or enhancing air quality or water quality; and
(2)  The transferred interest is not subsequently further divided or transferred 
except to another holder.
As used in this paragraph, "holder" has the same meaning as in Title 33, section 476, 
subsection 2.
K.  The creation of a dwelling unit or division of land that does not meet the definition 
of "subdivision" in this section may not be construed as intent to avoid the objectives 
of this chapter if the dwelling unit or division of land otherwise complies with state and 
local land use and zoning laws and ordinances as determined by an appropriate officer 
of the municipality or unorganized territory in which the dwelling unit or division of 
land is located.
Sec. 2.  30-A MRSA §4402, sub-§6, as amended by PL 2019, c. 174, §2, is further 
amended to read:
6.  Division of new or existing structures.  Beginning July 1, 2018, a division of a 
new or existing structure into 3 or more dwelling units whether the division is accomplished 
by sale, lease, development or otherwise in a municipality where the project is subject to 
municipal site plan review.  Beginning January 1, 2026, this subchapter does not apply to 
the creation of any number of dwelling units within an existing structure, whether by 
creating a condominium or through the redevelopment of the interior of the structure or by 
any other means, if the project is subject to municipal site plan review and approval.
A.  For the purposes of this subsection, "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 
stormwater management, sewage disposal, water supply and vehicular access and 
which may include criteria regarding other environmental effects, layout, scale, 
appearance and safety.
B.  The municipal reviewing authority in each municipality shall determine whether a 
municipal site plan review ordinance adopted by the municipality meets the 
requirements of paragraph A.
SUMMARY
This bill amends the definition of "subdivision" within the land use planning laws 
governing subdivisions to exclude from the definition the creation of up to 4 lots or 
dwelling units on a parcel of land. The bill provides that the addition or creation of an 
attached or unattached accessory dwelling unit does not constitute a lot. The bill also 
amends the exception to the subdivision law for a division of a new or existing structure 
into 3 or more dwelling units by allowing the creation of any number of dwelling units, 
whether by creation of a condominium or through redevelopment of the interior of the 
structure.