Housing initiatives in New Hampshire appear stalled by politics

A debate is currently taking place about rolling out an additional $5 million in funding for affordable housing — which would be sourced from the state’s Real Estate Transfer Tax. But Senate Republicans are opposed to the idea and have placed the debate on hold, according to news outlet InDepthNH.

The debate is contextualized by S.B. 81, which would codify the added funding from the tax. It was originally introduced in January, but the Senate has made no actions regarding it since March.

“Democrats on the committee said the state should move forward with the measure noting polls have found that the public overwhelmingly supports efforts to increase affordable housing,” InDepthNH reported. “But Republicans, including the bill’s sponsor, said this may not be the time to add more funding for affordable housing.”

But there are clear warning signs in the New Hampshire housing market, particularly when it comes to affordable options for Granite State residents.

Action needed, consensus limited

As previously reported by HousingWire, the median list price of a home in the state recently surpassed $600,000, according to data from Altos. Population growth estimates pegged the need for more units at roughly 60,000. As a result, New Hampshire’s housing market has been heating up.

But with projected state revenues trending down, fiscal conservatives are warning of the need for tough decisions to be made. Gov. Kelly Ayotte (R) introduced her budget proposal in February, but its revenue projections are far more positive — and inaccurate, some lawmakers contend — than those relied upon today.

House revenue projections were much lower and its $16 billion budget proposal includes layoffs, terminations of programs and increased fees. “Hundreds came out to a public hearing and laid out concerns for cuts in the House version,” InDepthNH reported.

Lawmakers appear to be constrained by other issues viewed as priorities by constituents. These include the need for additional Medicaid funding, a community mental health program and funding for people with developmental disabilities.

These priorities, according to Sen. Dan Innis (R), who sponsored the affordable housing bill, may require waiting to act on the affordable housing issue.

“As much as I hate to say it, I am willing to let it go this time,” Innis told the outlet. “As we move into next year, and we see where our revenues are and how the budget is playing out we may be able to move back toward this.”

Democrats contend that housing action is required now, and the real estate transfer tax bill would be a relatively easy lift for the Legislature to make progress. Republicans are concerned about the availability of funding but concede that if funds can be found elsewhere, they could revisit debate on the bill.

Zoning moves

The state has had some movement on housing in regard to zoning.

Its current zoning laws are considered restrictive by some housing advocates, but the Senate last week moved to support a House bill that would allow for residential construction in areas zoned for commercial use. It is also considering a separate bill to permit manufactured housing construction in all residentially zoned areas.

But some Republicans are voicing opposition to these moves. They contend that cities and towns would be forced to financially reckon with zoning changes.

And even with the passage of these bills, housing advocates like Nick Taylor, director of Housing Action NH, say they aren’t helpful without the allocation of additional funding.

“Relaxing the regulatory piece is a big deal when it comes to allowing for more attainable market-rate options like [accessory dwelling units], like mixed-use development [and] manufactured housing,” Taylor told News From the States.

“But when you really get to the deeply affordable levels, you need the financing piece there too. And that is in danger of being left out of the equation this session.”