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

14-D. State $75 per 30-A MRSA

Housing Affordable meeting §4360

Neighborhood plus

Development expenses for

Review certain

Board members

Sec. 2. 30-A MRSA §4301, sub-§1, as repealed and replaced by PL 1989, c. 878, Pt. A, §83, is repealed and the following enacted in its place:

1.__Affordable housing.__"Affordable housing" means a decent, safe and sanitary dwelling, apartment or other living accommodation for a household whose income does not exceed 80% of the median income for the area as defined by the United States Department of Housing and Urban Development under the United States Housing Act of 1937, Public Law 412, 50 Stat. 888, Section 8, as amended.

Sec. 3. 30-A MRSA §4360 is enacted to read:

§4360.__Regulation of affordable neighborhood development

1.__ Applicability.__This section applies in 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