Policy Tools
Accessory Dwelling Unit
Pre-Approved Plans
Definition: A self-contained dwelling located within, attached to, or detached from a primary unit on the same parcel. ADU pre-approved plans are construction-ready designs that have been vetted by local officials for fast-track approval and can be selected by homeowners for their own projects.
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Benefits: ADUs are ideal for seniors, empty nesters, and single adults while providing extra income for homeowners. Pre-approved plans lower costs and incentivize homeowners to build ADUs.
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Getting Started: Contract with a design or architecture firm to create a set of plans that the municipality will approve according to their regulations and code requirements. AIA Maine provides a list of Maine-based architecture firms. Review examples of local pre-approved ADU programs like those from the City of Seattle and the City of Los Angeles.
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State Policy & Local Examples: L.D. 654 includes recommendation for Maine to develop a pre-approved ADU design program. 
ADU being constructed in the Willard Beach neighborhood, South Portland, Maine.
Sip in style
Commercial Linkage
Definition: A requirement for commercial developers to contribute to affordable housing as a condition of approval. Developers could pay a fee used to fund the construction or preservation of affordable housing, or they could build affordable housing themselves.
Benefits: A linkage requirement provides a dedicated source of funding for affordable housing development near jobs while balancing impacts of new development. For communities undergoing substantial commercial development, a linkage requirement generates a reliable source of revenue
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Getting Started: Conduct a nexus study to assess linkage between new development and increased demand for facilities. Use results to establish maximum legal fees. Consider conducting a feasibility analysis to assess the impacts of different fee levels across development types. 
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State Policy & Local Examples: Linkage fee guidance is featured on the Local Housing Solutions website by NYU Furman Center and Abt Associates. Portland, where hotel development grew at a rate of nearly 15% between 2013 - 2016 imposes a one-time per-room for new hotel constructions.
Rendering of the Longfellow Hotel & Spa, under construction in Portland, Maine under conditions of commercial linkage. Photo courtesy of Uncommon Group and Archetype Architects.
Deed Restriction
Definition: Limitations written into the deed of a property that dictate certain conditions, such as affordability level, or prohibit specific uses. Restrictions “run with the land,” meaning they are binding not just on the current owner but also on subsequent owners.
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Benefits: Deed restrictions ensure long-term housing affordability by setting conditions on a property's use, such as by limiting the sale or rental price or by restricting property rental or sale to individuals or families that meet certain income requirements.
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Getting Started: Assess the feasibility and benefit of deed restrictions on a case-by-case basis. Deed restrictions are typically put in place upon development, often by a developer, builder, or local government as a condition of approval.
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State Policy & Local Examples: Maine authorizes "perpetual" deed restrictions for the purpose of preserving the affordability of subsidized owner-occupied housing (Local Housing Solutions). 
Landlord Engagement
Definition: The process of engaging landlords within a community to educate and promote the benefits of providing affordable housing, and to recruit and retain landlords that accept Housing Choice Vouchers. Activities include hosting public events, education through newsletters, briefings to community groups, and one-on-one meetings.​
Benefits: In addition to supporting recruitment and retention of landlords who accept housing vouchers, education and outreach improves landlord responsiveness, tenant-landlord relationship, and inspection processes.
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Getting Started: Identify target audiences, engagement outcomes, the information that will be delivered or received, and the structure of engagement activities.
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State Policy & Local Examples: The U.S. Department of Housing and Urban Development's HCV Landlord Guidebook and MaineHousing's Rental Housing Guide provides guidance on landlord engagement.
Community meeting on the future of Commercial Street in Portland, an example of an engagement activity commonly facilitated by GPCOG.
Local Housing Needs Analysis
Definition: A comprehensive study that compiles and evaluates a community's demographic data, its housing inventory, market trends, local policies and incentives, the adequacy and accessibility of community services, and the input of stakeholders and residents. The study typically concludes with an estimate of housing needed by quantity, affordability level, tenure, and target demographic.
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Benefits: The study identifies gaps in the local housing markets and informs development of housing policy and the prioritization and allocation of resources. It also promotes the alignment of key stakeholders, including developers, non-profits, and community groups. 
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Getting Started: Discuss and consider approval of funding for a local housing needs analysis and weigh the benefits of conducting analysis in-house versus working with a consultant. 
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State Policy & Local Examples:  The State of Maine Housing Production Needs Study presents statewide housing production targets based on demographic trends, economic development needs, and housing development constraints. Several Maine municipalities and regional planning organizations have conducted local-level analyses, like this regional housing needs analysis by Lincoln County Regional Planning Commission.
An example of a neighborhood street with a variety of housing types in Portland, Maine.
Reduced or Waived Fees
Definition: The reduction or waiver of development fees (e.g., application and building fees) for qualifying projects that will significantly contribute to the local affordable housing stock or another desired outcome, such as open space or park land. 
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Benefits: Reduced or waved fees incentivize development of affordable housing by lowering the net price of development. 
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Getting Started: Establish clear criteria for development fee reduction or waiver eligibility. Criteria should specify the income level(s) that must be serviced to qualify for reduced or waived fees, as well as any minimum threshold(s) for the percentage of units that must meet affordability requirements. 
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State Policy & Local Examples: A small number of Maine municipalities, including Brunswick and Pownal, have policies that allow for their governing bodies to reduce or waive development fees for affordable housing projects.
A rendering of the affordable housing development planned for the Wilbur's Woods development in Brunswick, Maine, where governing bodies can reduce or waive development fees for these kind of projects.
Reduced or Waived Parking Minimums
Definition: The reduction or waiver of the minimum number of required parking spaces, especially for projects near transit hubs. This can be done city or town-wide, in certain zoning districts, in areas that meet certain criteria (e.g. within 1/4 mile of transit stations), for particular housing types (e.g. multifamily), or other characteristics.
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Benefits: Reduced or waived parking minimums incentivize development by lowering the net price of development, potentially freeing up land for additional units, and may reduce the cost of housing for residents. 
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Getting Started: Review existing zoning code to understand what parking requirements exist for different uses, and how these might hinder flexible development. Victoria Transport Policy Institute's Parking Management guide outlines vetted strategies for reforming parking requirements.  
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State Policy & Local Examples: Maine law prohibits additional parking requirements for ADUs, as explained in Maine Department of Economic & Community Development's LD 2003 Guidance document. The City of Portland exempts the first four units in any residential use from off-street parking requirements.
A drone photo taken during peak-usage during the holiday shopping season in downtown Freeport as part of a study looking at parking capacity and usage downtown. The study could determine if a portion of some parking lots could be used for development.
Rent Stabilization
Definition: A system of laws or ordinances that limit the amount of rent that landlords can charge tenants, as well as restrictions on the frequency and percentage of rent increases.
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Benefits: Rent stabilization mitigates housing cost burdens for tenants by limiting rent increases, providing stability, and preventing displacement in rapidly gentrifying areas. 
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Getting Started: Assess local housing market dynamics, including rental prices, vacancy rates, and tenant demographics. Determine the projected need and feasibility of rental stabilization and potential impact on development market.
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State Policy & Local Examples: The State of Maine has not adopted a statewide rent stabilization policy. In November 2020, Portland voters approved a Rent Control Ordinance.
A seven-unit, multifamily rental property on the East End of Portland where a rent stabilization provision was passed by voters in November 2020. Photo courtesy of Benchmark Real Estate.
Short Term Rental Enforcement
Definition: A system for tracking, assessing fees on, and/or limiting the number pf short-term rentals, which are furnished living spaces available for short-term lease by companies like Airbnb or VRBO. 
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Benefits: Managing short term rentals incentivizes the preservation of long-term rental units and mitigates negative impacts on neighborhoods, such as noise disturbances, and can generate revenue for municipalities.
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Getting Started: Assess local short term rental market, including number of listings, occupancy rates, and impact of housing availability and affordability. If a management policy is deemed beneficial and is adopted by the governing body, municipalities may consider using a Short Term Rental Dashboard, such as that offered by GPCOG.
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State Policy & Local Examples: Several municipalities in Greater Portland are considering or have enacted short term rental ordinances, including Cape Elizabeth, Falmouth, Portland, Saco, Scarborough, and Yarmouth.
A screenshot of AirBnB listings of beach vacation rentals in Southern Maine, which make up a significant portion of accommodation options for seasonal tourists.
Transfer of Development Rights (TDR)
Definition: An incentive-based program that allows landowners to sell development rights from areas where a community seeks to limit growth (sending areas) to developers who want to increase the density of their development in areas where growth is directed (receiving areas). 
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Benefits: Transferring development rights directs growth to areas with sufficient infrastructure, preserves rural and agricultural lands, and incentivizes developers by allowing for higher densities. The program can encourage affordable housing development and stimulate redevelopment in urban areas while preserving rural areas.
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Getting Started: Assess level of demand for additional density on potential sites. Develop a transparent and streamlined method for processing development rights transfers and consider working with a local nonprofit partner to establish a “bank” that buys and holds development rights as needed until another viable buyer emerges.
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State Policy & Local Examples: GrowSmart Maine provides guidance on establishing TDR programs, including a copy of a New Gloucester zoning ordinance that includes TDR.
Development of new housing in Scarborough, Maine.
Accessory Dwelling Unit
Policy Toolkit
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This is a collection of tools and ideas municipalities and nonprofits can use to reduce barriers and incentivise ADU creation.
Remove zoning barriers to building ADUs
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Reduce setbacks to 5’ for accessory structures, allow at least 24’ height.
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Allow 3 ADUs or 4 units total per residential lot (LD2003 in Maine, 2022)
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Allow an ADU to be built on a lot with a one, two, or three dwelling units
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Don’t require owner occupancy
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Don’t restrict rentals to family members
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Don’t require common ownership - this allows for property to be condoized and can create new homeownership opportunities.
Remove permitting barriers to creating ADUs.
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Don’t require sprinklers for one or two story ADUs. New Hampshire (2024) made it illegal for towns to require sprinklers on buildings with fewer than 5 units.
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Don’t require separate sewer connection if current system has capacity
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Allow incinerating toilets
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Work with Backyard ADUs and/or Manufactured Housing Board to provide training to code enforcement officers on modular construction laws and processes.
Let residents know that you welcome ADUs in your community
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Add a page or blurb to the town website
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Post that it’s legal and any rules in newsletters, social media, and website
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Showcase successful ADU projects in newsletters, social media, and website
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Put posters up in public spaces
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Contact the local newspaper to do an article about it
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Backyard ADUs is happy to help provide content
Promote ADU resources for planning, financing, and construction
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Work with Backyard ADUs to host a webinar about ADUs
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Promote planning resources for building ADUs. Backyard has a tool to let people put in their address and drag and drop ADU footprints.
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Promote financing resources for building ADUs. Backyard has a tool to let people put in their numbers and estimate the costs of building an ADU.
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Backyard ADUs provides a low cost feasibility study that details what a homeowner can do, see Sample Backyard ADU Feasibility & Project Plans
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Create financial incentives for construction of ADUs
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Create a revolving loan fund for homeowners to create ADUs. If a municipality allocates $150k per year, that could create over 40 ADUs by year 10 and 5+ every year thereafter.
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If a state allocates $10M per year for 5 years to a revolving loan program for homeowners to create ADUs, that could create over 1,400 ADUs by year 11, and then more than 100 ADUs/year thereafter
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Revolving loans can deliver new ADUs at a cost to taxpayers as low as $36,000 per ADU, compared to over $200k/unit for other types of subsidized housing.
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Provide a financial incentive to homeowners at no cost to taxpayers by allowing Short Term Rentals for the first 5 years after construction. See Portland, Maine’s 2024 ordinance.
Amplify Impact by Partnering with Employers
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Employers often are willing to pay a small monthly amount to help recruit and maintain employees. This can enable mass ADU production that can be financed as a commercial loan by banks; homeowners can provide the yard space and just receive payments.
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See Backyard ADUs Rent Your Backyard Program. Pro Forma coming soon.
Bond to create greater impact.
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Revenue bonds can be used to borrow money at low interest rates to create a break-even revolving loan fund to incentivise homeowners to build ADUs.
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Montgomery County, Maryland, Chicago, and Atlanta have used bonds to create revolving loan funds for larger rental housing developments that follow the city’s rules for affordability; the same could be done for ADUs.
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2023 New York Times article about Montgomery County, MD This Is Public Housing. Just Don’t Call It That.
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2024 Study for Rhode Island: Publicly Driven Development and Ownership: A Scan of Models in the U.S. and Abroad NYU Furman Center for RIHousing and the Rhode Island Department of Housing
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Create a library of pre-approved building plans
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Pre-approved building plans save everyone time and money.
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The state could hold an open call for designs, and have a jury or committee. choose which plans to pre-approve, selecting a diverse variety.
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Individual towns could choose which of the designs they would allow without a detailed municipal building permitting process.
Regulate Short-Term Rentals (STR) to reduce local resistance to ADUs
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Require registration of units based on % of long-term rental registrations.
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Cap # of whole unit, non-owner occupied STRs.
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Hire a third party to track to make sure all listings on VRBO, Airbnb etc are registered.
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Require registration # in the online listing.
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Allow Short Term Rentals for the first 5 years after construction to provide a financial incentive to homeowners at no cost to taxpayers.
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See Portland Maine Chap 6, sec 6-151 for language.
Source: Backyard ADUs
ADUs can be an attractive addition to a home.