An Act to Allow Residential Use Development in Commercial Districts

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STATE OF MAINE
_____
IN THE YEAR OF OUR LORD
TWO THOUSAND TWENTY-FIVE
_____
H.P. 644 - L.D. 997
An Act to Allow Residential Use Development in Commercial Districts
Be it enacted by the People of the State of Maine as follows:
Sec. 1. 30-A MRSA §4364-C, sub-§3, as amended by PL 2023, c. 536, §1, is
repealed.
Sec. 2. 30-A MRSA §4364-D is enacted to read:
§4364-D. Residential units in areas zoned for commercial use
A municipality shall allow residential units within buildings located in an area zoned
for commercial use, including, but not limited to, buildings that are vacant or partially
vacant retail property, except when a municipality determines that flooding or other natural
hazards in the zone makes a building located in an area zoned for commercial use unfit for
residential use. For purposes of this section, "commercial use" means the use of lands,
buildings or structures the intent or result of which is the production of income from the
buying or selling of goods or services. "Commercial use" does not include a home-based
business, the rental of a single dwelling unit on a single lot or incidental sales of goods or
services as may be allowed by permit or standard.
1. Allowable limitation on residential units in areas zoned for commercial use.
An ordinance adopted by a municipality that regulates the establishment of residential units
in an area zoned for commercial use may establish standards that limit the number of
residential units in a commercial development.
2. Allowable requirement for commercial use on ground floor. An ordinance
adopted by a municipality that regulates the establishment of residential units in an area
zoned for commercial use may require the ground floor of a building containing residential
units to be restricted for commercial use.
3. Allowable siting and design requirements for residential units in areas zoned
for commercial use. A municipality may adopt an ordinance regulating the siting and
design of a residential or mixed-use development established in an area zoned for
commercial use as long as the ordinance, alone or in combination with other siting and
design ordinances, does not discourage the development through unreasonable costs or
delays.
APPROVED
JUNE 18, 2025
BY GOVERNOR
CHAPTER
364
PUBLIC LAW
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4. Prohibited limitations on residential development. An ordinance adopted by a
municipality that regulates residential development in an area zoned for commercial use
may not contain restrictions or limitations more stringent than the restrictions or limitations
contained in section 4364, 4364-A or 4364-B.
5. Health and safety requirements. This section is not intended to reduce or change
health or safety requirements applicable to residential units located in a municipality.
6. Rulemaking. The state agency responsible for administering the Housing
Opportunity Program established in Title 5, section 13056-J may adopt rules to administer
and enforce this section. Rules adopted pursuant to this subsection are routine technical
rules as defined in Title 5, chapter 375, subchapter 2-A.
7. Implementation. A municipality must comply with the requirements of this section
beginning July 1, 2027.