House Bill 577 would require that all municipalities allow, in residentially zoned areas, one accessory dwelling unit, which may be either attached or detached, as a matter of right. Last week, the Senate passed the bill, and it is now headed to the Governor’s desk. This is an important victory for homeowners and private property rights advocates.
See House Bill 577 here.
Towns can still require setbacks, aesthetic requirements, design review requirements, and frontage requirements, as long as those requirements are not beyond what would be required for a single-family home.
Under HB 577, municipalities cannot restrict the total living space of an ADU to less than 750 square feet. However, the total living space of the ADU cannot exceed 950 square feet unless authorized by the municipality. Adequate provisions for water and sewage must meet all NH Department of Environmental standards, but separate systems cannot be required for the principal and accessory dwelling units.
Existing NH statute (RSA 674:72) simply mandates municipalities to allow for an attached ADU, and towns were allowed to require a more expensive conditional use permit process. Allowing ADUs by right should reduce costs.
The Governor has, in the past, voiced support for the expanding of the ADU statute. If she signs the bill into law, the new requirement will go into effect in July.
Senate: The end of the lease is the end of the lease, but only sometimes, and not now
New Hampshire is just one of six states in the country which does not recognize the end of a residential lease term as cause for an eviction (RSA 540:2). House Bill 60 would align New Hampshire with the other 44 states by allowing property owners to evict tenants at the end of the contract.
These “no fault” evictions mean the reason for the eviction was not due to the action of the tenant (failure to pay rent, destruction of property etc.), but rather due to the term of the lease contract expiring.
Earlier this year, the House of Representatives passed the legislation. This past week, the Senate Commerce Committee significantly amended the bill to allow for such no-fault evictions in New Hampshire, but only when the state has a rental vacancy rate of 5 percent or higher for each quarter for that calendar year, according to data from the Federal Reserve.
The current rental vacancy rate in January was 4 percent, according to the Federal Reserve, and the last time it was above 5 percent for four quarters was in 2015.
The House of Representatives has also placed language in the state budget (HB 2) which creates no-fault evictions in New Hampshire. The differences in the House and Senate versions will be resolved one way or another in the next month.
Building on Class VI roads
Senate Bill 281 alters language in RSA 674:41, I(c) that already allows homes to be built along class VI roads under certain circumstances.
Under this bill, provided that other building permit requirements are met, a municipality must issue a building permit provided the applicant signs and records a waiver with the county register of deeds which states that: the municipality will not maintain the highway nor provide any services; the municipality will not accept responsibility for any losses or damages; and the applicant is solely responsible for any services.
The bill requires that the lot and all buildings are insurable before any building permit is issued.
The Senate has passed the bill and the full House of Representatives will vote on SB 281 later this week.
Quote of the Week
“Not only does the bill allow property owners to enhance asset value, but it also enables them to give their family members a jump start on living at home when they are young. By removing unnecessary red tape and making it easier to build ... we’re helping seniors stay close to loved ones.”
–Sen. Tim McGough (R-Merrimack) during the debate on HB 577, expanding the state’s accessory dwelling unit law (“Bill Expanding access to ADUs get final nod,” Union Leader, May 15, 2025)
For more information, contact New Hampshire Realtors CEO Bob Quinn: bob@nhar.com.