Modular Housing Bill Fails in Maine, Threatening Hundreds of Planned Units

A legislative fix to address a 'gray area' in state building codes died in committee, putting nearly 250 planned modular units in limbo.

Apr. 8, 2026 at 7:20pm

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An abstract, impressionistic photograph showing the blurred outlines of modular home components being assembled, with the scene obscured by a hazy, rain-streaked lens, conveying a sense of the industry's current challenges.As Maine grapples with a regulatory gray area that threatens the future of modular housing, the industry's promise of faster, more affordable development remains shrouded in uncertainty.Portland Today

A bill that aimed to fix an 'arcane' code issue in Maine's modular housing industry failed in committee last month, putting nearly 250 planned units across the state in limbo and threatening the growing momentum around multifamily modular housing development. The code discrepancy went unnoticed for years, allowing some projects to be built without following all of the state's complex rules, but a recent high-profile project in Portland exposed the problem.

Why it matters

The failure of the legislation means higher costs, scheduling issues, and in some cases major restructuring for five modular housing projects in the pipeline that would add 246 units across Maine. It also threatens to chill further investment and expansion in the state's modular housing industry, which has been seen as a potential solution to the state's housing crisis.

The details

Under Maine statute, single- and two-family modular housing is regulated under building codes that have different plumbing and electrical inspection standards than those for larger-scale multifamily modular developments. This 'weird disconnect' went unnoticed for years, allowing some projects to be built without licensed tradespeople and local inspections. The failed bill would have brought Maine in line with other states, allowing unlicensed workers to install plumbing and electrical systems under supervision.

  • The code issue was identified in a report from the Legislature's Housing Production Innovation Working Group last year.
  • LD 2229, the bill to fix the code discrepancy, failed in committee last month.
  • The Legislature has allocated $900,000 in the governor's supplemental budget to help the projects already in the works make it over the finish line.

The players

Kara Wilbur

President of modular housing company Dooryard, which worked on projects in Madison, Newcastle, and Rumford that were built without following all of the state's rules.

Chris Marshall

Co-founder of GreenMars real estate, which planned to build a 130-unit project in Portland that included 26 accessory dwelling units.

Sen. Rick Bennett

Independent state senator from Oxford who supported the failed bill but opted to cast his vote to prevent a divided report.

Kelly Flagg

Executive director of the Maine Association of General Contractors, which was one of the few dissenting voices on the bill, concerned that it proposed drastic changes too quickly.

Greg Payne

The governor's senior housing policy adviser, who warned that without a long-term solution, there will be a 'serious chill' in multifamily modular development in Maine.

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What they’re saying

“We literally didn't know. People were going off this understanding that a factory-built building gets inspected in the factory and the (code enforcement officer) inspects the onsite portion, and everyone took that at face value.”

— Kara Wilbur, President, Dooryard

“Maine had been operating right up until last summer as if (LD) 2229 had passed years ago.”

— Chris Marshall, Co-founder, GreenMars real estate

“For whatever reason, there wasn't an appetite because of some of the complexities of tackling it. As a consequence we haven't solved this problem.”

— Sen. Rick Bennett, Independent state senator, Oxford

“Unless we can figure out a long-term solution to this code incompatibility there's going to be a serious chill in multifamily modular development in our state. We have important work ahead of us.”

— Greg Payne, Senior housing policy adviser, Governor's Office

What’s next

The Legislature has instructed the Governor's Office of Policy Innovation and the Future to explore a more long-term solution to the code discrepancy issue. In the meantime, the $900,000 allocated in the supplemental budget will help the projects already in the pipeline make it to completion.

The takeaway

The failure of the legislative fix highlights the complex regulatory challenges facing Maine's modular housing industry, which has been seen as a potential solution to the state's housing crisis. Without a clear path forward, the uncertainty threatens to stall further investment and expansion in this growing sector.