Last week, the New Hampshire House of Representatives passed House Bill 577, which seeks to expands the ability of property owners to build an accessory dwelling unit (ADU) on their property (RSA 674:72). While the existing law only requires municipalities to allow for detached ADUs, HB 577 seeks to expand that requirement to detached units as well. NHAR testified in favor of the bill.
Additionally, the bill would remove a town’s authority to require a conditional use permit or special exception, but instead would be a matter of right. The bill also would expand the minimum size requirement of the ADU to 900 square feet. The Senate will take up the bill next month.
Meanwhile, the Senate delayed a vote on Senate Bill 84, which alters minimum lot sizes across the state. Over 500 Realtors contacted their Senators encouraging them to support the legislation.
If New Hampshire towns are to offer affordable housing to young families and workers and avoid eating up large tracts of rural land, New Hampshire will need to reduce the large-lot zoning restrictions that produce unaffordable housing and low-density sprawl.
SB 84 would limit a town’s ability to set minimum lot sizes for a single-family home with septic and a private well to no more than 66,000 square feet, or just over 1.5 acres (keep in mind, a football field is 1.3 acres).
The Senate is expected to take up the bill next week.
Right to build manufactured housing clears House
House Bill 685 would allow the construction of manufactured housing in all residential zones. The bill distinguishes manufactured housing from other housing options such as campers and recreational vehicles. NHAR testified in favor of the bill.
Supporters argued that manufactured housing is an important option in the housing affordability crisis as these homes are smaller, more energy efficient, and affordable starter and retirement homes for individuals.
Last week, the House of Representatives passed the bill. The Senate will likely hold a hearing next month.
Dollars for Housing
Senate Bill 279 would allow “housing champion communities” under RSA 162-A to participate in a business loan program administered by the Business Finance Authority. The legislation allocated $6 million for the program.
Through this program, the Authority could provide low interest loans to businesses in cities and towns that are designated as Housing Champions. So far, the program has awarded funds to 18 communities to help offset the cost of sewer and water infrastructure projects.
While the Senate Commerce committee unanimously approved the bill, it is understood that the $6 million price tag could be a challenge considering expected upcoming cuts to the state budget.
Quote of the Week
“Our economy and our economic competitiveness depend on a dynamic and skilled workforce. Solving our housing supply and affordability crisis is absolutely essential if we’re going to retain and attract people to our state.”
–Mike Skelton, CEO of the NH Business and Industry Association, announcing the formation of the Housing Supply Coalition, with both the NH Realtors and NH Homebuilders (NH Business Review “Housing Crisis Unites Business Groups,” March 5, 2025).
Bonus Quote of the Week
“We are hearing about the shortage of homes from the largest employers and the smallest employers as well. ... It’s hitting every level.”
–Tracy Hutchins, Upper Valley Business Alliance (Business NH Magazine, March 2025).
For more information, contact New Hampshire Realtors CEO Bob Quinn: bob@nhar.com.