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LD 1498

An Act To Limit Municipal Impact Fees On Housing Development

132nd Legislature (2025-2026) Introduced by Rick Bennett and 9 co-sponsors

Limits municipal impact fees on housing development and shifts the Housing Opportunity Program from DECD to the Maine Office of Community Affairs, effective immediately.

Signed by Governor
#construction #housing #impactfees
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Bill Summary · LD 1498

Summary — LD 1498: An Act To Limit Municipal Impact Fees On Housing Development

Status: Signed by Governor (enacted as an emergency measure) — July 1, 2025
Introduced: April 8, 2025
Committee: Housing and Economic Development
Key amendments: Committee Amendment A (H‑734); Senate Amendment A (S‑476)

Purpose / Intent

LD 1498 is intended to reduce costs and regulatory barriers to new housing by limiting municipal impact fees charged on housing development and to consolidate state oversight of housing grant/assistance activity by transferring the Housing Opportunity Program from the Department of Economic and Community Development (DECD) to the Maine Office of Community Affairs (OCA).

Key provisions

  • Limits municipal impact fees on housing development (bill text with specific fee caps or formulas not included in provided documents).
  • Repeals the Housing Opportunity Program within DECD and transfers program oversight, statutory responsibility, and associated funding to the Maine Office of Community Affairs.
  • Authorized staffing and administrative support associated with the transferred program:
    • Earlier bill language and fiscal notes proposed establishing DECD positions (2 Public Service Coordinator II) and OCA positions (1 Secretary Specialist and 1 Public Service Coordinator I) with associated All Other costs.
  • Includes emergency-measure language (required two‑thirds vote) so provisions took effect immediately upon enactment.

Fiscal impact

  • Initial fiscal notes (as amended in committee) showed appropriations to create positions and transfer program funding:
    • Proposed transfer of Housing Opportunity Program funding of $2,387,354 each year (FY 2025‑26 and FY 2026‑27).
    • Proposed DECD appropriations: $327,236 (FY25‑26) and $340,694 (FY26‑27) for 2 positions.
    • Proposed OCA appropriations: $232,202 (FY25‑26) and $248,902 (FY26‑27) for 2 positions/support.
  • Subsequent Senate amendment removed the duplicative appropriations and deappropriations because those actions were already included in the 2026‑2027 biennial budget (Public Law 2025, ch. 388 / LD 210). The fiscal note for the final amended bill reports no net fiscal impact to the General Fund.

Who is affected

  • Municipalities: will be subject to new limits on charging impact fees for housing development.
  • Housing developers and prospective housing projects: likely face lower or more predictable municipal development costs.
  • State agencies: oversight responsibility for the Housing Opportunity Program shifts from DECD to the Maine Office of Community Affairs; program funding and administrative responsibilities move accordingly.
  • Program recipients and subgrantees served by the Housing Opportunity Program: continuity of services is intended, with administration under OCA.

Legislative timeline / procedural notes

  • Committee work session and OTP‑AM recommendation: April–April 29, 2025.
  • Passed both chambers with Committee Amendment A (H‑734) and Senate Amendment A (S‑476) in June 2025.
  • Declared an emergency measure (two‑thirds vote required and obtained on June 17, 2025).
  • Signed by the Governor and enacted July 1, 2025.

Note: The summary reflects available fiscal notes and legislative actions. The bill’s statutory text (not provided) would contain specific fee‑limiting language and precise statutory changes transferring program authority.

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

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