LD 1535
pg. 3
Page 2 of 5 An Act Making Improvements to the Laws Regarding Local Land Use Ordinances ... Page 4 of 5
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LR 2018
Item 1

 
which a municipality may determine need.__Rules adopted pursuant to
this subsection are major substantive rules in accordance with
Title 5, chapter 375, subchapter 2-A and must be submitted to the
Legislature by February 1, 2006.

 
2.__Number of building permits under ordinance.__The
municipality may set the annual number of residential building
permits that are issued in a calendar year to a level no lower
than 50% the average number of residential building permits
issued during the preceding 2 calendar years or the average
number of residential building permits issued during the
preceding 7 calendar years, whichever is lower.__The municipality
may assign a higher proportion of the allowable permits to area
designated as growth areas in its comprehensive plan and a lower
proportion to areas designated as rural areas.

 
3.__Duration of ordinance.__A municipalitywide rate of growth
ordinance may be put in place for up to 5 years.__If predicated
on infrastructure needs that are being remedied by new
construction that is in progress but not yet complete, the rate
of growth ordinance may be phased out over a period of up to an
additional 3 years, with the allowable number of building permits
increasing by 1/3 per year.__A rate of growth ordinance may not
be in place for a period longer than 8 consecutive years.__A
municipality may not have a rate of growth ordinance in place for
more than 8 years in any 15-year period.

 
4.__Exemptions.__Notwithstanding subsection 3, the following
categories of housing may not be included in any numerical
building permit limitation under a rate of growth ordinance:

 
A.__The construction of a house by the original grantee of a
parcel created under the exemption to the definition of a
subdivision in section 4401, subsection 4, paragraph D-4 for
a gift to a person related to the donor; and

 
B.__Affordable housing, as defined in this chapter, when the
affordable housing is proposed for growth areas as
designated in the municipality's comprehensive plan.

 
5.__Allocation of building permits under ordinance.__In any
municipality adopting a rate of growth ordinance, the number of
building permits to be issued in any calendar year must be
divided in half and issued commencing January 1st and July 1st of
that year.__Unused permits from the first half of the year must
be carried over to the 2nd half of the year.__Unused permits from
the year must be carried over to the next year if a rate of
growth ordinance is in place the next year.__All permits must be
issued on a first-come, first-served basis, and there may be no
preference for local residents or local builders.__If the number


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