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Ryan Fecteau is the speaker of the Maine House of Representatives.
“Hey, do you know of any houses or apartments for rent or for sale?”
I would venture to guess that we’ve all gotten a version of this question in the past few years from folks desperately in search of affordable housing. I get it almost every day. And the answer is too often a “no.”
The numbers are stark. A recent report found mortgage payments on a median-priced home hit a record high of $2,560 — 40 percent higher than in 1990, even after adjusting for inflation. We’re seeing the first decline in the homeownership rate in eight years, a record-high median age for first-time homebuyers, and the lowest number of existing home sales since 1995.
Housing is the top issue for 30 percent of Mainers, according to a recent poll. And no wonder. A state review found that we need 84,000 new units by 2030. To reach that goal, we’ll need to more than double our current rate of housing production.
The problem is the creation of new housing units is often hampered by complex rules that make it too expensive and frustrating for homeowners to build. And right now, not all communities are doing their fair share of homebuilding, leaving it to neighboring towns.
This session, I put forward a common-sense proposal that will lead to more housing: it cuts unnecessary red tape and levels the playing field across the state — encouraging all communities to be part of helping Mainers find a place to call home. The proposal earned unanimous bipartisan support in the Legislature before being signed by Gov. Janet Mills.
Here are the highlights of the bill, which will help us tackle the housing crisis:
You can now build a single-family, duplex or a triplex on any residential lot in Maine. In some towns, certain lots will allow up to a four-unit apartment or condominium. Homeowners now have clear options to create housing units for their family and community if they wish. You must still follow local rules.
As the owner, you do not need to live in either the primary home or the in-law apartment (ADU). You also won’t need to install a sprinkler system in the ADU. These components of the bill help homeowners access the financing they need to actually construct a new unit.
In areas designated for growth, minimum lot sizes cannot exceed 5,000 square feet and density cannot exceed 1,250 square feet per unit for the first four units and 5,000 square feet for any additional units. This limits California-style sprawl and keeps development away from our forests, agricultural fields, and wetlands.
Housing under four units will be subject to staff review only at the municipal level, aligning with single-family home review standards, and lowering costs for homeowners and developers who want to build these smaller multi-family homes.
We know that a one-size-fits-all approach won’t work for Maine’s unique communities. LD 1829 will intertwine with local nuance, including, but not limited to, setbacks, road frontage, height restrictions, lot coverage, driveway parameters, design standards, historic compliance, water and sewer requirements, and environmental protections.
A second initiative I proposed also became law, eliminating the real estate transfer tax entirely for qualified first-time homebuyers and those who sell property to them — the biggest tax cut for first-time homebuyers in state history. It also establishes Maine’s first-ever affordable housing production fund. The fund is capitalized by an increase in the real estate transfer tax, applied to the portion of a home sale that exceeds $1 million. And could the timing be any better? There are two homes for sale right now that will be among the highest home sales in Maine history at $16.25M and $15M respectively.
These new laws position Maine as the national leader in not just talking the talk, but walking the walk. It’s a walk that leads to the front door of a new home for your kids returning to Maine after graduation, or the new patrol officer on your local force, or the plumber who will be at the ready to fix a leaking pipe in your home. And to every Mainer who steps through the door to their new home, I simply say, “Welcome home.”
