An Act to Allow Residential Use Development in Commercial Districts
Sponsored By: Marc Malon (Democratic)
Became Law
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Bill Overview
Analyzed Economic Effects
4 provisions identified: 3 benefits, 0 costs, 1 mixed.
Homes allowed in commercial areas
Beginning July 1, 2027, towns must allow homes inside buildings in commercial zones, including empty or partly empty stores. A town can refuse only if it finds flooding or another natural hazard makes the building unfit to live in. Commercial use means property used to earn income by selling goods or services; it does not include home businesses, renting one home on a lot, or small permitted sales.
State limits local barriers to conversions
The law limits how strict local rules can be for housing in commercial zones. Starting July 1, 2027, towns may set design and siting rules, but not ones that make projects unreasonably costly or slow. Local rules also cannot be stricter than the state’s baseline standards. An older subsection is repealed to fit this new framework.
Home safety rules stay the same
The law does not change building, health, or safety rules for homes. All current safety standards still apply to any new units in commercial areas.
Towns may cap units, keep retail
A town may limit how many homes are in a single commercial project. It may also require the ground floor of a mixed-use building to stay commercial. These rules can support street shops but can reduce space for apartments.
Sponsors & Cosponsors
Sponsor
Marc Malon
Democratic • House
Cosponsors
Cassie Julia
Democratic • House
Cheryl Golek
Democratic • House
Ryan Fecteau
Democratic • House
Roll Call Votes
No roll call votes available for this bill.
Actions Timeline
ACTPUB Chapter 364
5/1/2026PASSED TO BE ENACTED, in concurrence.
6/16/2025SenatePASSED TO BE ENACTED. Sent for concurrence. ORDERED SENT FORTHWITH.
6/16/2025HouseReports READ On motion by Senator CURRY of Waldo The Majority Ought to Pass As Amended Report ACCEPTED in concurrence READ ONCE Committee Amendment "A" (H-686) READ. READ and ADOPTED in concurrence Under suspension of the Rules, READ A SECOND TIME and PASSED TO BE ENGROSSED AS AMENDED by Committee Amendment "A" (H-686) in concurrence Ordered sent down forthwith
6/13/2025SenateReports READ.On motion of Representative GERE of Kennebunkport, the Majority Ought to Pass as Amended Report was ACCEPTED.The Bill was READ ONCE.Committee Amendment "A" (H-686) was READ and ADOPTED.Under suspension of the rules, the Bill was given its SECOND READING without REFERENCE to the Committee on Bills in the Second Reading.The Bill was PASSED TO BE ENGROSSED as Amended by Committee Amendment "A" (H-686). Sent for concurrence. ORDERED SENT FORTHWITH.
6/13/2025HouseCarried over, in the same posture, to the next special or regular session of the 132nd Legislature, pursuant to Joint Order SP 519.
3/21/2025HouseThe Bill was REFERRED to the Committee on HOUSING AND ECONOMIC DEVELOPMENT in concurrence
3/11/2025SenateCommittee on Housing and Economic Development suggested and ordered printed. The Bill was REFERRED to the Committee on HOUSING AND ECONOMIC DEVELOPMENT.Sent for concurrence. ORDERED SENT FORTHWITH.
3/11/2025House
Bill Text
Enacted
Engrossed
Introduced
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