LD1498 • 2025

An Act to Address Maine's Housing Crisis by Limiting Municipal Impact Fees on Housing Development

Housing

Enacted

This bill passed the Legislature and reached final enactment based on the latest official action.

Sponsor: Representative Billy Bob Faulkingham
Last action: 2025-07-01
Official status: Signed by the Governor
Effective date: Not listed

Plain English Breakdown

Using official source text because the generated explanation was unavailable or could not be confirmed against the official bill text.

An Act to Address Maine's Housing Crisis by Limiting Municipal Impact Fees on Housing Development

An Act to Address Maine's Housing Crisis by Limiting Municipal Impact Fees on Housing Development Sponsor: Representative Billy Bob Faulkingham Reference committee: Housing and Economic Development Governor action: Signed by the Governor

What This Bill Does

An Act to Address Maine's Housing Crisis by Limiting Municipal Impact Fees on Housing Development Sponsor: Representative Billy Bob Faulkingham Reference committee: Housing and Economic Development Governor action: Signed by the Governor

Limits and Unknowns

This entry is temporarily using official source text because the generated explanation could not be confirmed against the official bill text during the last sync.

Amendments

These notes stay tied to the official amendment files and metadata from the legislature.

C-A (H-734)

Adopted by House & Senate

Plain English: Page 1 - 132LR2143(02) COMMITTEE AMENDMENT 1 L.D.

Page 1 - 132LR2143(02) COMMITTEE AMENDMENT 1 L.D.
1498 2 Date: (Filing No.
H- ) 3HOUSING AND ECONOMIC DEVELOPMENT 4 Reproduced and distributed under the direction of the Clerk of the House.
5STATE OF MAINE 6HOUSE OF REPRESENTATIVES 7132ND LEGISLATURE 8FIRST SPECIAL SESSION 9 COMMITTEE AMENDMENT “ ” to H.P.

S-A to C-A (S-476)

Sponsored By Senator Rotundo of Androscoggin , Adopted by House & Senate

Plain English: Page 1 - 132LR2143(04) SENATE AMENDMENT 1 L.D.

Page 1 - 132LR2143(04) SENATE AMENDMENT 1 L.D.
1498 2 Date: (Filing No.
S- ) 3 Reproduced and distributed under the direction of the Secretary of the Senate.
4STATE OF MAINE 5SENATE 6132ND LEGISLATURE 7FIRST SPECIAL SESSION 8 SENATE AMENDMENT “ ” to COMMITTEE AMENDMENT “A” to H.P.

Bill History

2025-07-01 Governor
Signed by the Governor
2025-06-25 House
PASSED TO BE ENACTED . Sent for concurrence. ORDERED SENT FORTHWITH.
2025-06-25 Senate
PASSED TO BE ENACTED , in concurrence.
2025-06-16 Committee
Reported Out; OTP-AM
2025-04-29 Committee
Work Session Held
2025-04-29 Committee
Voted; OTP-AM
2025-04-08 Committee
Referred to Committee on Housing and Economic Development.

Official Summary Text

An Act to Address Maine's Housing Crisis by Limiting Municipal Impact Fees on Housing Development
Sponsor:
Representative Billy Bob Faulkingham
Reference committee:
Housing and Economic Development
Governor action:
Signed by the Governor

Current Bill Text

Read the full stored bill text

Page 1 - 132LR2143(06)
STATE OF MAINE
_____
IN THE YEAR OF OUR LORD
TWO THOUSAND TWENTY-FIVE
_____
H.P. 982 - L.D. 1498
An Act to Address Maine's Housing Crisis by Limiting Municipal Impact
Fees on Housing Development
Be it enacted by the People of the State of Maine as follows:
Sec. 1. 30-A MRSA §4354, first ¶, as repealed and replaced by PL 1991, c. 722,
§8 and affected by §11, is amended to read:
A Subject to the requirements and restrictions set forth in this section, a municipality
may enact an ordinance under its home rule authority requiring the construction of off-site
capital infrastructure improvements or the payment of impact fees instead of the
construction of infrastructure improvements. Notwithstanding section 3442, subsection 2,
an impact fee may be imposed that results in a developer or developers paying the entire
cost of an infrastructure improvement. A municipality may impose an impact fee either
before or after completing the infrastructure improvement. The municipality shall establish
a policy document, accessible at the office of the municipality or on the publicly accessible
website of the municipality, that describes the manner by which the municipality
determines that a development necessitates an infrastructure improvement and how the
developer's share of the cost of that improvement is determined.
Sec. 2. 30-A MRSA §4354, sub-§1, 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 capital infrastructure improvements or impact fees instead of capital
infrastructure improvements including the expansion or replacement of existing
infrastructure facilities and the construction of new infrastructure facilities. A municipality
shall demonstrate that a required infrastructure 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 infrastructure
improvement.
A. For the purposes of this subsection, infrastructure facilities include, but are not
limited to:
(1) Waste water collection and treatment facilities;
APPROVED
JULY 1, 2025
BY GOVERNOR
CHAPTER
480
PUBLIC LAW
Page 2 - 132LR2143(06)
(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.
Sec. 3. 30-A MRSA §4354, sub-§2, ¶C, as enacted by PL 1989, c. 104, Pt. A, §45
and Pt. C, §10, is amended to read:
C. The ordinance must establish a reasonable schedule under which the municipality
is required to use encumber the funds within 360 days of receipt and in a manner
consistent with the capital investment component of the comprehensive plan.