LAND USE REGULATION COMMISSION

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AFFORDABLE HOUSING Draft Policy Statement and
Proposed Rule Changes
LAND USE REGULATION COMMISSION 4 APRIL 2007
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BACKGROUND

• Commission directed staff to draft rules in
  August 2006
• Staff presented draft policy statement and rules
  in February 2007
• Commission posted drafts to 30-day public
  comment period
• Comments incorporated into proposed policy
  statement and rules

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CHANGES TO AFFORDABLE HOUSING POLICY STATEMENT

• Comments made by Commissioners were directed at
  Policy Statement
• Comments tended to raise subjects that require
  further consideration
• Only one resulted in proposed changes
• Ensure that dimensional requirements and land use
  standards for residential structures and
  subdivisions do not contain any unnecessary
  barriers to the creation of affordable
  residential lots and construction of affordable
  dwelling units.

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CHANGES TO AFFORDABLE HOUSING RULES

• Maine State Housing Authority submitted
  extensive, detailed comments
• Monhegan Island and Maine SPO made briefer
  comments
• Summary of Comments/Responses organized by
  sections in the rules

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10.02 AFFORDABLE HOUSING DEFINITION

• Comments by MaineHousing SPO concurred
• Be consistent with established definitions
• Response completely replaced
• Modify definition of moderate income households
  and lower limit on hh income for housing costs
• Response left income category at 150 of area
  median and left income limit on costs at 33

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AFFORDABLE HOUSING COVENANT DEFINITION

• Use the term qualified housing entity in place
  of qualified holder
• Response qualified holder replaced in
  definition and throughout the rules
• Delete reference to 33 MRSA 121(1)
• Response statutory reference deleted

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10.25,U. AFFORDABLE HOUSING 1. Dimensional
Requirements

• Do not specify a minimum lot size (mls). Let
  the site, site design and other rules determine
  what lot size is sufficient.
  MaineHousing
• What purpose does the 20,000 sq. ft. requirement
  serve? To maximize affordability, allow
  densities greater than 1 unit per 20,000 sq.
  ft. SPO
• Response the reduction of the mls in Chapter 10
  to a 20,000 sq. ft. minimum is being retained for
  consistency with the State Minimum Lot Size Law,
  although additional language has been added to
  allow further reductions in accordance with that
  statute.

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3. Maintenance of Long-term Affordability

• Refer to the defined term affordable housing
  covenants rather than other terms, expand the
  rules to refer to rental units, and refer to the
  Affordable Housing Covenants statute, 33 MRSA
  122, concerning creation, conveyance, acceptance
  and duration. MaineHousing
• Response the rules have been so revised.

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3.(b) Rentals

• Tie any rent increases to changes in the rental
  market, such as HUD published fair market rents,
  and refer to HUD HMFAs, not MaineHousing.
  MaineHousing
• Response the rules have been so revised.

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3.(c) Other Mechanisms

• Refer to other affordability mechanisms listed
  in the Affordable Housing Covenants statute at 33
  MRSA 124. MaineHousing
• Response the reference to the Affordable
  Housing Covenants statute, 33 MRSA 124, has been
  incorporated into the rules.

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4.(b) (c) Qualified Housing Entities

• There can be only one covenant holder and not a
  back-up holder. Clarify that the back-up entity
  needs Commission approval also.
  MaineHousing
• Response the references to covenant holder and
  back-up holder have been deleted from the rules
  the terms qualified housing entity and back-up
  qualified housing entity remain. The rules under
  the Affordable Housing Agreement require that
  both entities be acceptable to the Commission.

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5. Affordable Housing Agreement

• The terms of the agreement between the qualified
  housing entity and the back-up entity should be
  reviewed by LURC. MaineHousing
• Response a new provision, 5(b), has been
  incorporated into the rules, requiring the
  submission of the agreement to the Commission.

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5.(f) Affordable Housing Agreement

• If housing is returned to market rates, why is
  there an expectation that excess profits would
  be returned? MaineHousing
• Response the return of profits to the
  oversight entity helps maintain a stock of
  affordable dwelling units the seller who returns
  the unit(s) to market rates does not retain the
  profit.

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5.(g) Affordable Housing Agreement

• Would LURC clarify what documentation will be
  needed to comply with the rule regarding the
  waiver? Monhegan Island Sustainable
  Community Assoc.
• Response sales on the island over the last few
  years would be used to define the housing market
  MaineHousing can provide info on Monhegans
  median income, upon request by MISCA.

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5.(h) Affordable Housing Agreement

• Add a new part to the agreement that requires
  the submission of reports to LURC by the
  qualified housing entity at specified times.
  MaineHousing
• Response a new item, 5,(h), requires the
  submission of annual reports by the qualified
  housing entity.

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10.26,G Exceptions to Dimensional Requirements

• Pending changes to LURCs dimensional lot
  standards could reduce shore frontages to as
  little as 75 on coastal islands. DEP/Army Corps
  have 25 property line setbacks, BPL submerged
  lands - 25 littoral line setbacks, new 50
  setbacks from adjacent piers and floats. Siting
  new piers may become more problematic.
  BPL Submerged Lands Program
• Response proposed reductions are to the
  minimum extent necessary to accommodate units
  where applicant demonstrates no undue adverse
  effects. Commission will have discretion.

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STAFF RECOMMENDATION
ADOPT DRAFT AFFORDABLE HOUSING POLICY
STATEMENT AND PROPOSED RULE CHANGES