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Legislative Update: May 21, 2024

Legislative Update: May 21, 2024

Taking action on ADUs

By BOB QUINN
Chief Executive Officer

NHAR has initiated a Call for Action on House Bill 1291, which expands private property rights by ensuring owners can construct either an attached or detached accessory dwelling unit (ADU) by right. Roughly 650 REALTORS have responded, contacting their Senators in support of the bill. If you have not already responded to the Call for Action, please check your Monday email for an Enews from NHAR.

Current law mandates that municipalities must allow a property owner to construct an attached ADU (RSA 674:72). Towns often impose expensive and time-consuming permit requirements which make ADUs for some too expensive. The vote will occur later this week.

Lease termination procedure for victims
of domestic violence becomes law

House Bill 261 was first introduced in 2023 and was intended to allow a victim of domestic violence to terminate a residential lease. Last year, the bill was held up after domestic violence advocates brought up concerns that it might conflict with federal laws. Those concerns were resolved, and the Governor signed the bill last week. The law will take effect on January 1, 2025.

The law states that a residential tenant or household member of a tenant who is the victim and initiates legal action must first do one of the following:

  1. Initiate legal action to obtain a protective order and provide written verification to the landlord or property owner; or
  2. Report the domestic violence, sexual assault, or stalking to a law enforcement agency and provide written verification to the landlord or property owner; or
  3. Provide written verification from a law enforcement official, victim’s advocate, attorney, or health care provider that he or she is a victim of domestic violence, sexual assault, or stalking; or
  4. Provide a signed self-certification form provided by the circuit court. The circuit court will develop the form.

The landlord is required to keep any such verification in strict confidence and shall not disclose without the victim’s prior authorization. The tenant may terminate the lease within 30 days’ notice.

For the purposes of determining rent owed, a tenant who terminates a lease or rental agreement is only liable for rent owed through the date of termination or the date the tenant vacates the premises, whichever is later. The security deposit, if any, shall remain applied to the rental of the premises until all tenants have vacated, at which time the security deposit shall be returned pursuant to RSA 540-A:7.

The statute also states that any false statements made by the tenant may be subject to criminal penalties, including potential perjury.

Septic notification mandated
during transfer of food establishments

House Bill 1144 was introduced on behalf of the NH Department of Environmental Services, primarily to ensure buyers of restaurants are made aware of the seating capacity allowed under the approved sewage disposal system, which is generally available at NHDES or the town office. 

The original version of the legislation also mandated that sellers of residential property would be required to provide septic approval documents to the buyer. NHAR objected, and both NHDES and legislators agreed that such a mandate was not needed.

NHDES testified that a number of restaurant buyers were unaware that the establishments’ current seating layout was not supported by the size of the septic system. The Department wanted to mandate that the seller would be required to provide the buyer with the septic permit and seating capacity. Again, NHAR objected.

The final version of the bill states that sellers will need to provide “Information relative to approved seating capacity based on the sewage disposal system, if the property is a food service establishment.” If the seller does not have a copy of the septic permit nor is aware of its capacity, they will simply need to inform that buyer of that. The Senate Commerce Committee has approved the bill and the full Senate will take final action next week. 

Quote of the Week

This bill is extremely ill-advised as it displaces business tenants, making them homeless when business space is converted to residential use.

–NH Rep. Diane Pauer, arguing against passage of SB 480, the HOMEnibus bill. The legislation would have simply allowed municipalities to grant tax-incentives to developers when converting office space to residential use. ("House kills 'HOMEnibus bill,' voting against attempt to incentivize housing," NH Bulletin, May 7)

“It’s hard to fathom that the House voted down the HOMEnibus bill in the midst of New Hampshire’s housing crisis.

–Elissa Margolin, director of Housing Action NH, an advocacy group. (NH Bulletin, May 7)

For more information, contact New Hampshire Realtors CEO Bob Quinn: bob@nhar.com.

"Amidst the sea of change to which the New Hampshire Association of REALTORS has played witness in its 85 years, one thing that has remained constant is the Realtor 'R' and the value we bring to every real estate transaction in which we take part. We are part of a unique community where our familial cooperation transcends our business competition. These are not mere platitudes, but our living ideals, and they are, in fact, the foundation on which we conduct ourselves in our day-to-day affairs."

Joanie McIntire, 2024 President, New Hampshire REALTORS