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State House: July 1

Last week, by just a single vote (183-182) the New Hampshire House of Representatives passed a two-year state budget (House Bill 2). While HB 2 is supposed to simply set budget requirements for state government operations, the bill also included a number of non-financial provisions which will impact the real estate industry. Here are a few such items included in the state budget document: 

Prohibition on certain foreign principals from purchasing or leasing property in NHNHAR was heavily involved in this discussion during this session and convinced budget writers to add important liability protections for agents, landlords and buyers. 

This legislation prohibits individuals and entities identified as "foreign principals" from certain "foreign countries of concern" – specifically China, Russia, Iran, Syria, and North Korea – from owning, leasing, or controlling real property in New Hampshire. A "foreign principal" is broadly defined to include foreign governments or officials, companies organized under these countries, and individuals acting as employees or agents of those governments. 

NHAR had requested the statute include language which stipulates that, “a real estate or closing agent shall bear no obligation or requirement to instruct, disclose, assist, or authenticate a person or entity who leases or acquires, or seeks to lease or acquire, an ownership or controlling interest in real property. Responsibility for knowledge of and compliance with the provisions of this subdivision shall lie solely with the foreign principal.” 

The legislature agreed to add the language, which significantly decreases the potential liability of licensees and sellers. 

The original version of the language would have required a notarized affidavit by every individual or company purchasing or leasing property within 10 miles of a military installation, attesting they were not a foreign agent. NHAR objected to that language, and it was eventually removed from the final bill.

This new law went into effect when the bill was signed on June 27.

Endangered species and wildlife permit reviews move from Fish & Game to NHDESThe NH Department of Environmental Services (NHDES) is now responsible for conducting environmental reviews tied to certain permits (under RSA 482-A, RSA 485-A, and RSA 236) to ensure compliance with species protection rules. The department must adopt rules and a fee schedule within 90 days, and reviews must generally be completed within 60 days unless extended by the applicant or paused for additional information. If deadlines are not met, the project is presumed to not jeopardize endangered species. 

Fish and Game had been identified as a major bottleneck in the state permit process. Legislators believe giving NHDES this authority will make the process faster and less costly.

New fees on NH DES permitsNumerous fees were increased related to shoreline structures, dredging, filling in wetlands, review of sewage disposal systems, and other permits. Fees for various project types, including permanent and seasonal docks, dredge or fill areas, and voluntary dock registrations, have been raised by 50 percent, with base fees rising from $400 to $600 and per-square-foot fees increasing proportionally.

This legislation increases fees for terrain alteration permits and establishes a new fee structure based on the size of the disturbed area. It also introduces a $3,125 flat fee for projects qualifying for a new “permit by notification” option for disturbances under 150,000 square feet, which the Department of Environmental Services must formalize through rules by January 1, 2026. The intent is to decrease the permitting time for smaller projects.

New boathouse requirementsBeginning July 1, 2025, new boathouses built over public waters in New Hampshire must not exceed 18 feet in height, may not have a second floor, and must limit storage to items directly related to boating. Existing boathouses as of that date cannot be modified to increase height or add floors.

Violations of these boathouse restrictions – or related wetland structure rules – will require removal of the noncompliant structure and may result in civil or criminal penalties, with any fines going to the municipality where the violation occurred.

Housing Appeals Board changesThe housing appeals board is now administratively attached to the board of tax and land appeals for budgetary and administrative purposes, and instead of three members it will now have two. The members of both the housing appeals board and Bureau of Land & Tax Appeals shall serve at the pleasure of the governor and council, rather than fixed terms.

QUOTE OF THE WEEK

“Like older adults across the country, people in New Hampshire want to age in their homes or in their communities for as long as their health allows them to.” 

–Christina FitzPatrick, state director of AARP-NH, regarding House Bill 577, which will expand a property owner’s right to build an accessory dwelling unit. (New Hampshire Business Review, June 28, 2025)

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

Jul 01, 2025

"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."

Susan Cole, 2025 President, New Hampshire REALTORS