Maine LD 1246: Resolve, Directing The Department Of Economic And Community Development To Convene A Working Group To Review The Process Of Setting Impact Fees

Bill Text

Page 1 - 132LR2047(03)
STATE OF MAINE
_____
IN THE YEAR OF OUR LORD
TWO THOUSAND TWENTY-FIVE
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H.P. 821 - L.D. 1246
Resolve, Directing the Department of Economic and Community
Development to Convene a Working Group to Review the Process of Setting
Impact Fees
Emergency preamble. Whereas, acts and resolves of the Legislature do not
become effective until 90 days after adjournment unless enacted as emergencies; and
Whereas, the State is facing a housing crisis that harms the quality of life and
economic prosperity of all Maine residents that needs to be addressed as soon as possible;
and
Whereas, to address this crisis, an additional 84,000 new housing units must be built
by 2030; and
Whereas, a study on the barriers to addressing this crisis, completed in January 2025
by HR&A Advisors, found that unpredictable and overly burdensome costs and fees,
including impact fees, were a deterrent to the construction of housing; and
Whereas, the HR&A Advisors report recommends the State establish a working
group to review current local fees, including impact fees, and develop standards by which
a municipality determines the local infrastructure costs and impact fees resulting from a
housing development project, a transparent process by which municipalities establish those
fees and a requirement that the fees be established at the beginning of the project approval
process; and
Whereas, in the judgment of the Legislature, these facts create an emergency within
the meaning of the Constitution of Maine and require the following legislation as
immediately necessary for the preservation of the public peace, health and safety; now,
therefore, be it
Sec. 1. Department of Economic and Community Development to study
impact fees. Resolved: That the Department of Economic and Community
Development, as the state agency responsible for overseeing the Housing Opportunity
Program established in the Maine Revised Statutes, Title 5, section 13056-J, or a successor
agency, in collaboration with the Office of Policy Innovation and the Future and the Maine
Office of Community Affairs, shall convene a working group to study the process by which
APPROVED
JUNE 18, 2025
BY GOVERNOR
CHAPTER
85
RESOLVES

Page 2 - 132LR2047(03)
municipalities impose impact fees under Title 30-A, section 4354. The working group
must include representatives of municipalities and developers associated with municipal
infrastructure improvements and others with relevant experience. The study must include
a review of the existing process by which municipalities establish and impose impact fees,
guidance related to impact fees provided to developers and documentation municipalities
use in establishing impact fees. For the purposes of this section, "impact fee" has the same
meaning as in Title 30-A, section 4301, subsection 6-A. By December 3, 2025, the state
agency responsible for overseeing the Housing Opportunity Program shall submit a report
based on the study, including recommendations and any suggested legislation, to the Joint
Standing Committee on Housing and Economic Development, and the committee may
report out legislation related to the report to the Second Regular Session of the 132nd
Legislature.
Emergency clause. In view of the emergency cited in the preamble, this legislation
takes effect when approved.