APPROVED CHAPTER
JULY 1, 2025 480
BY GOVERNOR PUBLIC LAW
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Sec. 1. 30-A MRSA §4354, first ¶, as repealed and replaced by PL 1991, c. 722,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;
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 (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.
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Statutes affected:
Bill Text ACTPUB , Chapter 480: 30-A.4354