Last week, the Senate passed an amended version of the "Starter Home Bill," Senate Bill 84, relative to minimum lot sizing requirements for residential construction. NHAR supported the amended version of the legislation.
It was truly a bipartisan bill, with seven Republicans and seven Democrats voting in support.
As passed by the Senate, a municipality could not require a lot size greater than 88,000 square feet (2.02 acres) for single-family residential uses if the lot is not served by either municipal water or sewer.
For lots serviced by municipal or community water infrastructure, towns could not require lot sizes greater than 44,000 square feet (1.01 acres) for single-family residential, unless the municipality provides empirical evidence that the water system cannot support additional homes.
If the lot is served by municipal water and sewer, towns could not require lots greater than 22,000 square feet (a half-acre). Again, a town could override this state requirement if they can show empirical evidence that the land cannot support more housing.
Importantly, these provisions would apply to only a majority of the residential-zoned land in a municipality. In other words, at least 51 percent of that land must comply.
All other municipal zoning ordinances not related to minimum lot sizes, such as frontage or setbacks, still must be met by the developer.
For additional details on the bill, find our FAQs here.
Thank you to the nearly 600 Realtors who contacted their respective Senators in support of the bill. If enacted, the bill would go into effect in July 2026. The legislation is now moving to the House of Representatives.
Multiple land use changes pass Senate
The Senate also passed, unanimously, Senate Bill 170, which makes several critical changes to the state zoning statute, including restricting a town’s authority to limit road frontage requirements and setbacks for lot lines to no more than 50 feet to improve housing density, as long as that setback remains consistent with existing state shoreland protection standards and does not override any other state environmental standards. NHAR supports the bill.
In addition, SB 170 also provides that:
Municipalities cannot mandate that occupants of housing units be related by blood or marriage.
Municipalities cannot require more stringent test-pitting requirements for septic systems than the NH Department of Environmental Services requires.
Municipalities cannot limit maximum road length to impede development, provided that the proposed roadway or extension complies with the state fire code.
Municipalities cannot impose a cap on the number of housing lots on dead-end roads or streets.
Municipalities are required to stamp and accept changes to plans within three days as they are submitted, after an initial review, when requested by municipality, provided the developer has made the requested alterations based on the initial planning board review.
The bill is now headed to the House of Representatives.
One stairway is enough
Senate Bill 282 would allow residential buildings between four and six floors above grade to have only one stairway under certain conditions. Stairways are expensive, and they remove valuable living space.
At least 17 states and several cities have enacted similar legislation to bring down housing costs. This bill would restore flexibility in residential designs, while also maintaining safety. The Senate Commerce attached an amendment which dealt with concerns raised by the State Fire Marshal. The bill has passed out of the Senate and is headed to the House of Representatives.
NHAR Supports the bill.
Current use tax holiday nixed
Senate Bill 55 would have provided a temporary exemption through 2030 from the current use land use change tax for certain housing projects with more than 20 housing units. During the hearing, Senators expressed concerns that as land is removed from current use, municipalities would lose out on revenue. Advocates for the bill argued that towns would more than make up for that lost municipal revenue with the property tax revenue from new housing. Last week, the Senate voted to kill the bill.
Quotes of the Week
“(Housing) is a crisis, make no mistake. ... This is perhaps, among all the zoning issues we have this year, the single most important bill.”
–Sen. Tim McGough of Merrimack (R-District 11), arguing on the Senate floor in favor of Senate Bill 84, relative to minimum lot sizes. (InDepth NH, “Affordable Housing Lot Sizes Pass NH Senate,” March 21, 2025.)
“We heard the voters loud and clear: The cost of housing is too high, indicating a lack of supply. Housing prices are up 59 percent in just the last four years. A coalition of builders, Realtors, housing advocates, and employers suggested legislation to get the government out of the way and lower prices by increasing supply."
–Sen. Keith Murphy of Manchester (R-District 16), during the debate in support of SB 84.
“Our small businesses are starved for a strong workforce, and we can’t meet this need without affordable housing. ... Housing remains the number one issue, and these bills will move the needle by spurring affordable housing and starter home development while still respecting local control.”
–Sen. Rebecca Perkins Kwoka of Portsmouth (D-District 21), during the debate in support of SB 84.
For more information, contact New Hampshire Realtors CEO Bob Quinn: bob@nhar.com.