Last Thursday, the 2026 New Hampshire legislative session came to an end, as both the House and Senate met for the last time and voted on the last of the nearly 1,400 bills introduced this year. Hundreds of those bills are now headed to the Governor’s desk for her consideration, and she will spend much of the summer either signing bills, vetoing them, or allowing them to become law without her signature.
Once that process is completed, NHAR will provide members with a full accounting of all the new laws impacting property owners and our members.
From Storefronts to Front Doors:
Lawmakers Fine-Tune Commercial-Zone Housing
In 2025, the Legislature enacted a new law requiring municipalities to provide opportunities for multifamily housing development in commercially zoned areas. That requirement takes effect on July 1.
This year, lawmakers sought to clarify how those developments would be reviewed and approved at the local level. Those companion bills are House Bill 1010 and House Bill 1588.
House Bill 1010 builds upon last year's legislation by establishing a more defined framework for permitting multifamily housing in commercial zones. The bill continues to require municipalities to allow residential development on commercially zoned land, while preserving local planning board authority to ensure that adequate infrastructure is available to support the project. Under the legislation, planning boards may deny an application in specific circumstances, including concerns related to traffic, water supply, or wastewater capacity.
The bill also addresses impacts on neighboring water sources by allowing a planning board to deny an application if the owner of an abutting well can demonstrate that the proposed development would cause the well to be unable to meet existing water demand.
House Bill 1588 states that municipalities cannot impose frontage, setback, and height requirements for multifamily developments in commercial zones which differ from those allowed for commercial development. It also clarifies that such multifamily construction in commercial zones is by-right and towns cannot enforce additional requirements unless expressly authorized by 674:80.
The bill also states that a municipality must allow pre-existing nonconforming structures to be converted to multifamily dwelling units or mixed use provided that the structure’s envelope is not altered to further violate zoning district dimensional requirements.
Importantly, if any owner of commercially-zoned property is improperly denied approval for multifamily housing and files suit against the municipality, they will be entitled to be reimbursed reasonable attorney's fees. That provision should give towns pause before denying an application without thorough and reasonable review of an application.
Both bills have passed and are on their way to the Governor’s desk for her signature. If she does attach her signature, both laws would go into effect on July 1.
New Laws Going into Effect
In addition to allowing multifamily in commercial zones, there a couple of other bills, passed in 2025,which are now set to go into effect on July 1.
Termination of tenancy at the expiration of the lease term (RSA 540-2): The new law makes the end of the lease term cause for an eviction. Currently, under NH law, the end of the lease contract is not considered “good cause” to evict. Keep in mind, a landlord is required to provide 60 days notice in advance of the termination of tenancy indicating the lease will not be renewed. (2025 - HB 60)
Prohibiting municipalities from denying housing permits for property adjacent to Class VI road under certain circumstances: It is important to keep in mind that the owner must sign a liability waiver, and the owner needs to provide evidence the building is insurable. (2025-SB 281)
Quote of the Week
“New Hampshire’s housing needs have reached a crisis point, and it is critical that we do all we can to increase the supply of affordable housing and lower costs on everything from rent to construction to repairs.”
—Congressman Chris Pappas (NH-2) on the passage of the bipartisan 21st Century ROAD to Housing Act, a measure strongly supported by the National Association of Realtors.
The legislation provides communities with new tools and resources to modernize zoning regulations, encourage housing development, and increase housing supply. It also streamlines federal permitting processes, expands financing opportunities for manufactured and rural housing, improves access to credit for prospective homebuyers, and helps ensure that veterans can fully utilize the benefits available through the VA home loan program.
Follow NHAR on Instagram (nhar603) and Facebook (New Hampshire REALTORS).
For more information, contact New Hampshire Realtors CEO Bob Quinn: bob@nhar.com.
