CASE STUDY

While New York Needs More Housing, Maine Towns Adopt Housing Caps

While New York Needs More Housing, Maine Towns Adopt Housing Caps

New York ties state money to towns that commit to more housing. In Maine, towns are writing yearly caps on new homes into law, and keeping them when their own planners argue against them. Both directions are written down in the towns’ own minutes.

Two states, opposite directions

New York ties state money to building. Maine towns cap how many homes get built.

New York’s Governor set a goal of “800,000 new homes over the next decade to meet the historic shortage.” The state now makes Pro-Housing Community certification “a requirement for municipalities” applying to key discretionary funding programs. Maine has a housing push of its own, and its law now bars growth caps in a town’s designated growth areas. Outside them, Maine towns are capping.

Pledgetowns sign up to build more
New York
STATE GOAL
Jan 10, 2023
The Governor announced a plan to “build 800,000 new homes over the next decade to meet the historic shortage,” calling it “a severe, once-in-a-generation housing crisis.” Governor’s announcement, January 10, 2023
THE RULE
2023 on
An executive order created the Pro-Housing Communities program. The state housing agency says localities “must achieve the ‘Pro-Housing Communities’ certification to apply to key discretionary funding programs.” NYS Homes and Community Renewal, Pro-Housing Community Program
VOTE
Feb 2, 2026
Lackawanna’s City Council voted 5-0 to adopt the Pro-Housing Communities pledge: “every community must do their part to contribute to housing growth.” Its steps include “Increasing development capacity for residential uses.” City Council minutes, February 2, 2026
KEPT
Jun 4, 2026
The state wrote to the Town of Brighton that it keeps its status for 2026 and access to “the $750 million in State discretionary funding programs that is available exclusively to Pro Housing Communities.” State letter in the Town Board packet, June 24, 2026
20 a yearnew-home permits in the rural area · from Jan 1, 2027
Brunswick, Maine
FREEZE
Nov 2025
Agenda notes say the Town Council adopted a moratorium on rural subdivision applications “due to increased development activity and concerns about traffic safety, rural character, and natural resource protection.” Town Council agenda notes, April 6, 2026
EXTENDED
May 4, 2026
Set to expire May 16, the freeze came back to the council for an extension: “additional time is needed.” On May 4 the Town Council voted 9-0 to extend it. Town Council agenda notes, April 6, 2026 · Town Council minutes, May 4, 2026
DRAFT
Jun 5, 2026
Staff drafted a cap of 32 new homes a year in the rural area: “the average number of permits issued in rural districts over the past three years was 32.” Planning Board packet, June 9, 2026
VOTE
Aug 3, 2026
After a hearing with 13 speakers, the Town Council cut the cap to 20 and adopted it, 8-1. Town Council minutes, August 3, 2026
IN FORCE
Jan 1, 2027
“The maximum number of Rural Growth Permits issued during an Allocation Year shall be 20.” Permits not used by December 31 expire. Adopted ordinance, Sec. 5-53

The cap that stayed

Gray’s planners said the reason for its cap was gone. The council kept it, twice.

two council votes to repeal the cap · both failed
Gray, Maine
BACKGROUND
Apr 2026
Staff wrote that the council “approved the Growth Management Ordinance in April 2026,” timed to the state’s new housing density law. The state then changed that law in a way that removed “the main reason for the adoption of the growth ordinance.” Staff recommendation on repeal: “Ought to pass.” Staff commentary in the Town Council packet, August 4, 2026
VOTE
Aug 4, 2026
Repeal failed 2-3. The minutes record “some members favoring its retention to control development pace and others advocating for repeal to encourage housing growth.” Town Council draft minutes, August 4, 2026
HEARING
Aug 13, 2026
Planning Board members on the cap: “makes it harder for people to build new homes in Gray” and “see no reason to limit building permits, need tax base.” Planning Board minutes, August 13, 2026
VOTE
Aug 18, 2026
Repeal failed 2-3 again. The council “voted to keep the ordinance in place but agreed to revisit and potentially amend permit limits in a future workshop.” Town Council draft minutes, August 18, 2026, in the September 1 packet

What Maine’s law leaves open

Maine’s 2026 housing law, LD 2173, says a town “may not enact or enforce rate of growth ordinances that limit residential development in designated growth areas” except under strict conditions. For every other part of town: “A municipality may adopt a rate of growth ordinance applicable to all other areas without limitation by this section.” LD 2173 as filed in South Berwick’s June 16, 2026 hearing record

Towns noticed. In January, Cumberland’s Town Council voted 7-0 for a resolution that says “Maine faces a significant housing shortage” and, in the same text, that “the prohibition on growth caps in designated growth areas eliminates a critical tool.” It asks the Legislature to “repeal LD 1829 or delay its implementation.” Town Council minutes, January 28, 2026

Where it is on record now

Scarborough, Maine

On August 19, 2026 the Town Council voted 7-0 on the second reading of its 2027 home-permit allocation under its Rate of Growth Ordinance, after moving five permits to the rural area for an approved subdivision. A resident spoke about “the reduction in permits” and questioned the fairness of the process.

Source: Town Council minutes, August 19, 2026, in the September 2 packet

Falmouth, Maine

Town staff told a council committee on October 6, 2025 that one of the biggest proposed changes is “to reduce the town-wide cap for development outside of the Town’s growth districts,” and that the town “will eventually be having additional discussions in future years about further reducing growth allowances outside of the growth areas.”

Source: Community Development Committee minutes, October 6, 2025

Limerick, Maine

In July 2025 the town’s code officer, reporting on the year’s building permits, said “He would like to see the Moratorium that has been discussed come into place”; the draft covered subdivisions of 7 or more. The moratorium “was approved at the Special Town Meeting on 9/2/25.”

Source: Select Board minutes, July 21, 2025 · Select Board minutes, September 8, 2025

+More towns on the record

Why it matters

Where new homes may be built, and how many each year, is decided town by town, often by one or two votes. New York is paying towns to say yes. Maine’s towns are writing caps into law in the places the state still allows them. If you build, finance or buy land for housing, the cap that shapes your next year is already in a town’s minutes. Tell us the towns you work in, in the box below, and we will find the caps on their record.

If you sell software to towns

Every permit runs through somebody’s software, and usually through somebody’s payment screen. A town that commits to more homes is about to get busier at the permit desk: that is a reason to get its attention. A town that caps or pauses building gets quieter, and its rules get harder to run: that is the moment to look after the customer you already have. The signal only means something once you know who already serves the town. We read that from the same records: which vendors a town pays, and which way its housing rules are moving. Tell us your product and your towns in the box below.

METHODOLOGY: Every example above comes from the town’s own record, linked beside it. Agendas, packets and workshop papers show what was proposed; we say adopted or voted only where minutes or the adopted ordinance show it. Where minutes are drafts, or were filed inside a later meeting’s packet, the source says so.

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