Zoning Tools

Contract Zoning

Definition: The process by which a property owner agrees to the imposition of certain conditions or restrictions not imposed on other similarly zoned properties to allow a particular kind of development where it otherwise would not be allowed.

Benefits: Contract zoning is traditionally used for the development of complex, multi-phase projects. 

Getting Started: Schedule a public hearing on the property to be contract zoned. Notice of the hearing must be: 1) posted in the municipal office at least 13 days prior; 2) Published at least two times in a local newspaper; 3) sent to the owner or owners of the property to be rezoned and to the owners of all property abutting the property to be rezoned; and 4) sent to a public drinking water supplier if the area to be rezoned is within its source water protection area. 

State Policy & Local Examples: 30-A M.R.S.A. § 4352 outlines the legal stipulations for contract zoning in the State of Maine. The Town of Standish developed an overview of contract zoning, including a sample agreement from the City of South Portland. 

In March 2024, Kennebunk voters approved a contract zone for a 70-unit affordable housing project on empty land adjacent to the Kennebunk Savings Bank operations center. The housing will cater to people age 55 and older who make up to 60 percent of the area's median income.

Form-Based Code

Definition: A type of land use regulation that focuses on the physical form of buildings and their relationship with the environment rather than solely on their use and permissibility within specific zoning districts. It is also known as ‘character-based’ zoning.

Benefits: Form-based codes provide predictable results and encourage "placemaking" by regulating relationships physical form rather than property uses.

Getting Started: Because form-based codes rely on a shared community vision, municipalities should conduct public engagement early in the process. Maine's Municipal Planning Assistance Program provides webinars and other resources about form-based codes, as well as a Community Visioning Handbook to help get you started.

State Policy & Local Examples: Several Maine municipalities utilize form-based codes to guide growth of certain districts or neighborhoods, including Auburn (Downtown Auburn and New Auburn), Portland (India Street), and Scarborough (Higgins Beach).

This 12-unit condominium development in Yarmouth is an example of using form-based codes to revitalize historic structures. Renovation of Shepley House and Weld House, historic buildings formerly owned by North Yarmouth Academy, illustrate how form-based codes can complement historic downtowns.

Inclusionary Zoning

Definition: A zoning practice that requires or encourages developers to include affordable housing in market-rate developments. Inclusionary zoning policies can be mandatory or voluntary and can be instituted city or town wide, or in targeted areas with elevated risk of displacement.

Benefits: Inclusionary policies yield affordable housing within market-rate development with little to no public subsidy.

Getting Started: Conduct an inclusionary housing feasibility study to ensure that a new inclusionary policy is economically sound, will not deter development, and will result in the type of affordable housing needed by a particular community. In a collaborative report, the Grounded Solutions Network, Terner Center for Housing Innovation, and Lincoln Institute of Land Use Policy provide guidance for conducting an inclusionary housing feasibility study.

State Policy & Local Examples: A few Maine municipalities have approved inclusionary zoning policies in recent years, including Brunswick and Portland.

Winchester Woods, a project made up of four 12-unit buildings on Sherwood Street in Portland's East Deering neighborhood, was the first multifamily project to be developed since voters approved the "Green New Deal" in 2020. The measure requires that developments of 10 or more units, 25% must be affordable to people making 80% of the area median income (AMI).

Overlay Districts

Definition: A regulatory land use tool that places a new layer (or “overlay”) of standards and criteria over the existing base zoning district to address specific development issues within a particular area. Overlay districts are often used to protect special features, guide development in an area, or to implement specific policies without changing the underlying zoning.

Benefits: Overlay districts can create more housing opportunities within a given area where otherwise prohibited by the underlying zoning. They can also make use of infill opportunities within specific areas, increasing cost-effectiveness for creating affordable housing due to existing infrastructure and services.

Getting Started: Assess the existing zoning and how it affects the development of affordable housing and identify areas where an overlay district would be most beneficial. Clearly establish the goals and objectives of the overlay district, such as incentivizing the development of or preserving existing affordable housing.

State Policy & Local Examples: Several Maine municipalities utilize overlay districts to encourage development of mixed-use, workforce, and/or affordable housing development, such as Gorham, and York.

In December 2023, Greenville voters approved an overlay district to permit the construction of homes with no minimum lot size, no minimum setbacks from property lines, no maximum lot coverage, no minimum frontage and no maximum height with the intent of making homes more affordable. Rendering courtesy of Principle Group.

Zoning Reform

Definition: A process that involves changes to zoning (land use) codes to allow for needed housing types in certain areas of or throughout a municipality. This includes things like adjustments to density, maximum lot sizes, setbacks, etc.

Benefits: Allows for a more flexible and useful range of land use, including in areas that have historically been limited to single family homes. Zoning reform can encourage development of more affordable housing to address local housing challenges, make places more walkable, preserve historic character and transit-oriented development, and improve parking practices.

Getting Started: Conduct a comprehensive review of existing zoning ordinances, engaging stakeholders to understand their needs and concerns. Smart Growth America Codes for Communities program helps municipalities across the country review and revise proposed and existing codes.

State Policy & Local Examples: In April 2022, the State of Maine enacted LD 2003 "An Act To Implement the Recommendation of the Commission To Increase Housing Opportunities in Maine by Studying Zoning and Land Use Restrictions.” Municipalities that adopt ordinances through town/city council were required to update and create ordinances to comply with LD 2003 by January 1, 2024. The City of Portland recently reformed their zoning code to exceed LD 2003 requirements.

An example of a neighborhood street with a variety of housing types in Portland, Maine.

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Contract Zoning

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Form-Based Code

Inclusionary Zoning

Overlay Districts

Zoning Reform