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LD 997

An Act To Allow Residential Use Development In Commercial Districts

132nd Legislature (2025-2026) Introduced by Ryan Fecteau and 3 co-sponsors

Authorizes residential use in commercial zones to spur mixed-use housing along corridors; prompts local zoning updates and Housing Opportunity Program rulemaking.

Signed by Governor
#housing #regulation #residentialuse
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Bill Summary · LD 997

Summary — LD 997: An Act To Allow Residential Use Development in Commercial Districts

Status: Signed by Governor (June 18, 2025)
Introduced: March 11, 2025
Sponsor: Rep. Malon, II of Biddeford
Committee: Housing and Economic Development
Enacted version: As amended by Committee Amendment “A” (H-686)

Purpose / Intent

The statute authorizes the development of residential uses within areas zoned for commercial activity. The intent is to expand opportunities for housing production by permitting or clarifying residential development in commercial districts, encouraging mixed‑use development, and increasing housing supply in commercial corridors.

Key provisions (as enacted)

  • Permits residential use or residential development in areas otherwise designated/commercially zoned. (The enacted language is the version amended by Committee Amendment “A” (H‑686).)
  • Includes direction that results in a rulemaking role for the state agency responsible for the Housing Opportunity Program (HOP), based on subsequent fiscal notes indicating rulemaking activity.
  • Other technical or procedural changes (setbacks, density, parking, permitting processes) are not detailed in the available summary; implementation will depend on the final statutory text and any implementing rules.

Who is affected

  • Property owners and developers in commercial districts — gain the option to build residential units or mixed‑use projects.
  • Municipalities and local planning and zoning boards — may need to adjust local ordinances, permitting practices, or comprehensive plans to implement the law.
  • Tenants, prospective homeowners, and the local housing market — may see increased housing options in commercial areas.
  • State agencies — the Housing Opportunity Program has rulemaking responsibilities tied to the law.

Fiscal and administrative impact

  • Initial preliminary fiscal note (03/18/2025) indicated no fiscal impact.
  • After committee amendments, fiscal notes (05/30/2025 and 06/13/2025) identified a minor General Fund cost increase related to HOP rulemaking. Those additional costs are expected to be absorbable within existing budgeted resources.

Legislative timeline / procedure

  • Referred to Housing and Economic Development: 03/11/2025
  • Committee work, work session, and divided report during spring 2025; Committee Amendment “A” adopted.
  • Passed both chambers and sent for concurrence in mid‑June 2025.
  • Passed to be enacted: 06/16/2025
  • Signed by Governor: 06/18/2025 — now law.

Note: This summary is based on available legislative actions and fiscal notes. For precise statutory text and implementation details (e.g., specific zoning changes, standards, or limits), consult the enacted bill language and any subsequent HOP rules.

Compiled from official sources — confirm details with the bill’s official record.

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