Housing

This bill updates Maine's growth management laws to enhance housing affordability, infrastructure development, and environmental protection. It amends key definitions - such as setting "affordable housing" at 80% of area median income - and adds new funding categories for mixed-use housing projects, bicycle/pedestrian infrastructure, and public utility systems. The bill also revises program goals to prioritize affordable housing for low/moderate-income households, protect water resources, and support marine industries. These changes directly affect Maine municipalities implementing growth management plans and state agencies overseeing land use and housing policies.

This bill (LD 1940) revises definitions in Maine's Growth Management Program laws to clarify housing affordability standards. It defines "affordable housing" as housing costing no more than 30% of a household's income when income is at or below 80% of the area median, and "attainable housing" for households earning between 80% and 120% of the median. The bill also establishes definitions for terms like "cluster development" (reducing lot sizes to preserve open space), "accessory dwelling units" (secondary housing on single-family lots), and "age-friendly communities." These updated definitions directly affect local governments, developers, and housing programs implementing Maine's growth management policies. The changes aim to provide clearer standards for housing affordability without creating new programs or mandates.

LD 746 allows Maine municipalities to impose a 2% local sales tax on short-term lodging (like hotels and vacation rentals) if approved by voters through a referendum. The tax must be applied only to lodging already subject to state sales tax, and requires voter approval with a majority vote and at least 20% turnout from the previous gubernatorial election. Ten percent of the revenue collected must fund Maine's affordable housing programs through the State Housing Authority, while the remaining 90% goes directly to the municipality that enacted the tax. The tax cannot be applied in unorganized territory and cannot take effect before January 1, 2026.

LD 1657 expands Maine municipalities' ability to use tax increment revenue for affordable housing by adding specific allowable costs. The bill allows funds to cover development, purchase, operation, and financial support of affordable housing projects, including costs for creating municipal loan or grant programs that assist qualifying homebuyers. Crucially, it removes the requirement that these housing projects must be located within designated affordable housing development districts. This change gives municipalities greater flexibility to support affordable housing initiatives and workforce recruitment efforts outside existing tax increment zones.

LD 1476 imposes a $2 fee on the rental of living quarters in hotels or short-term rentals, and on recreational vehicle camping reservations, starting January 1, 2026. The revenue generated from this fee must be directed to the Maine Department of Health and Human Services. This funding is specifically designated to support the operational costs of homeless shelters across the state. The bill directly affects property owners and renters in the hospitality and camping sectors, while providing new resources for shelter services.