Sec. 1. 5 MRSA §12004-G, sub-§14-D is enacted to read:

14-D. State $75 per 30-A

Housing Affordable meeting MRSA__4361

Neighborhood plus

Development expenses

Review for certain

Board members

Sec. 2. 30-A MRSA §4361 is enacted to read:

§4361.__Regulation of affordable neighborhood development

1.__Applicability.__This section applies to municipalities that are part of a labor market area, as defined by the Department of Labor, in which the Maine State Housing Authority, using common underwriting criteria, determines that a household at the median income for the labor market area can not afford to purchase a median-priced home.__The Maine State Housing Authority shall make this determination at least every 2 years.

2.__Definitions.__As used in this section, unless the context otherwise indicates, the following terms have the following meanings.

A.__"Accessory dwelling unit" means a dwelling unit of 600 square feet or less within a single-family dwelling or a building accessory to and on the same lot as the single- family dwelling when the owner of the property occupies either the main dwelling or the accessory dwelling unit.

B.__"Affordable neighborhood development" means a primarily residential development on at least 3 contiguous acres in which at least 25% of the dwelling units are affordable housing as defined by section 4301 and that is designed to be compact and walkable; is served by, or will be served by an extension of, a public sewer; includes internal open space and other common open space; includes one or more small-scale nonresidential uses of service to the residents of the development, either built within the development or available within 1/2 mile of the development; and meets design guidelines established pursuant to subsection 5.

C.__"Common open space" means a parcel or parcels of land, an area of water or a combination of land and water, including floodplains and wetlands, within or traversing an affordable neighborhood development and designed and