Downtown Housing Overlay District

Mixed-use, design-based zoning to support year-round infill housing and a strong local economy in Orleans’ commercial core

The Downtown Housing Overlay District is an optional zoning pathway created to encourage year-round attainable housing in Orleans’ sewered commercial areas.  The zoning includes comprehensive regulations and design standards for new development and redevelopment, unlocks the opportunity for a variety of missing-middle types, and offers a streamlined by-right approval process.

The Downtown Housing Overlay District was approved at the November 17, 2025 Special Town Meeting and was approved by the Attorney General on March 4, 2026.

Click here for the full text of the Downtown Housing Overlay District.

Click here for the zoning map amendments.

Click here for an Exhibit Map of the Downtown Housing Overlay District.

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The overlay district is designed to meet community housing goals by encouraging private investment in year-round, missing-middle housing.  It promotes a balanced approach to development, emphasizing a walkable downtown that reflects local character. 

  • Year-Round Requirement: All new developments must deed-restrict 50% of residential units for year-round occupancy.
  • Affordability Requirements: Developments of 10 or more units must restrict:
    • 10% of units as affordable (up to 80% of Area Median Income, or AMI).
    • An additional 15% of units as attainable (up to 200% of AMI).
  • Modern Design Standards: The proposal introduces comprehensive standards for building and site development that use a modern, design-based approach.

The district allows mixed-use development and multi-family housing by-right and creates two tiers of development standards:

  • Village-Scale Corridor Subdistrict: This area lines the historic village center streets and parts of Route 6A, maintaining a pattern of smaller buildings.
    1. Standard Height: 2.5 stories.
    2. Incentivized Height: A maximum height of 3.5 stories is allowed for developments where all units are restricted (10% affordable, 40% attainable, and 50% year-round).
    3. This district mandates mixed-use development in the Downtown core, encouraging the evolution of the village center into a vibrant, walkable area.
  • Commercial Center Subdistrict: This area focuses on allowing compact housing development.
    1. Standard Size: 3.5-story residential buildings with a maximum 8,000 square foot footprint.
    2. Incentivized Size: A maximum 10,000 square foot footprint is allowed for developments where all units are restricted (10% affordable, 40% attainable, and 50% year-round). 

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The Process

The housing overlay district was initiated by the Orleans Planning Board in response to recommendations in the Town’s Economic Development Plan and 10-Year Housing Strategy.  The goals of the zoning amendment were to:

  • Boost Housing: Encourage the production of privately funded affordable and attainable housing for year-round residents and incentivize the creation of varied rental and ownership options for people at various income levels and life stages.
  • Strengthen Downtown: Reinforce Downtown Orleans as a livable, walkable neighborhood, mitigating traffic congestion by promoting housing near commercial uses, public transit, and bicycle/pedestrian infrastructure.
  • Support Businesses: Increase the year-round customer base to support existing and future Orleans businesses as well as a stabilized workforce.
  • Protect Water Quality: Encourage multi-family development in sewered areas to ensure new wastewater flows do not compromise the Town's water quality.

Presentations and Documents

Community Meetings

A community meeting was held on August 19th to preview potential development regulations and take public feedback on priorities, form and design, and housing affordability and attainability.

A recording of the meeting is available here.

The presentation slides are available here.

A community meeting was held on April 11th to review the history of development in Orleans’ commercial center and to evaluate the current development regulations. Meeting participants engaged in conversations about where mixed-use development and higher density housing should go, and what types of uses and buildings they would like to see in downtown Orleans.

A recording of the meeting is available here.

The presentation slides are available here.

What is design-based or form-based code and why adopt one?

Traditional zoning was designed to keep incompatible uses separate.  It regulates lot sizes, property line setbacks, and units per acre to keep structures apart and to moderate density.  Traditional zoning does not consider how buildings interact with people, streets and sidewalks, and other public spaces.  It was written with single-family homes and apartment blocks in mind.  Traditional zoning is rigid and often does not allow existing buildings to be adapted, or for addition of missing-middle housing types that fit best in our community.

A design-based or form-based code is focused on creating cohesive places.  The USE of land continues to be regulated, but a greater focus is given to the FORM of the buildings – where they are placed on a lot, the height of each story, how the entrance relates to the sidewalk, where parking is in relation to the building, and so on.  These codes contain more detailed regulations: this approach produces more predictability in the resulting development, and requires less review, and thus less uncertainty, during the permit process.  

The process of writing a form-based code must be rooted in public process that generates and documents consensus amongst public and private stakeholders.  Form-based codes are designed to be contextual – they are calibrated to local conditions like climate, history, and market and can be adapted for different districts or neighborhoods within a town.  They’re also designed to be positive, and state what the community wants from the built environment, not just what is prohibited.  For these reasons, public participation throughout the process is essential.