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Municipal association says cities, towns unfairly blamed for housing problem by NH Business Review for Rick Green -The Keene Sentinel

There is no lack of legislation in Concord this year aimed at solving what many people regard as the state’s biggest problem, the high cost of housing.

Proponents say restrictive municipal zoning policies and anti-development sentiments are driving up the price and driving down the availability of homes.

What remains to be seen is whether these bills can overcome contentions that they would usurp local officials’ ability to decide whether or not to allow home construction.

The N.H. Municipal Association, whose membership includes every town and city in the state, has come out against four measures now pending in the Housing Committee of the state House of Representatives.

Legislative leaders created the panel late last year amid growing concerns about the lack of affordable housing in a state where the median price of a new home now tops $500,000 and only 13 percent of two-bedroom apartments are affordable to the median renter.

Housing costs were identified by 36 percent of University of New Hampshire Granite State Poll respondents last year as the state’s biggest issue, five times higher than any other concern.

In its Feb. 6 Legislative Bulletin, the municipal association stated that the high cost and lack of availability of housing stems from factors including higher interest rates and increased labor and material costs.

“Based on the majority of housing-related bills introduced in 2025, the legislature’s overarching response to this multi-pronged issue is to blame the cities and towns to the exclusion of other factors, bulldozing over local control and planning and zoning regulations,” the statement said.

It also said state mandates imposed on local communities would strip voters of the right to make local decisions.

The organization is opposing four bills now being considered by the Housing Committee:

House Bill 577 would mandate that municipalities allow one detached or attached accessory dwelling unit on single-family lots.

House Bill 685 would require that manufactured housing be allowed in residentially zoned areas.

House Bill 631 would mandate that multifamily or mixed-used developments be permitted in certain areas designated as urban by the U.S. Census, including Keene.

House Bill 382 would remove the authority of municipalities to regulate some parking requirements.

The N.H. Municipal Association is also opposing Senate Bill 84, which the Senate Commerce Committee unanimously passed Tuesday and sent to the full Senate. It would mandate ordinances to allow smaller lot sizes for single-family homes.

Rep. David Paige, D-Conway, who is on the Housing Committee, said Friday in an interview that he is seeing bipartisan support for housing legislation.

“I feel pretty good that we will be able to drive forward momentum on a lot of these,” he said.

For example, there seems to be a consensus that accessory dwelling units, or home additions, can boost housing supplies, he said.

“We all feel this is a powerful tool to drive incremental growth in housing availability,” Paige said, adding that legislation can be written to make sure there is enough septic capacity and that such additions won’t lead to a proliferation of short-term housing.

He acknowledged there is a difference of opinion between those who prioritize local control on housing and those who feel state mandates are needed.

Paige also said a variety of factors contribute to the high cost of housing, including corporate interests that buy up homes.

The committee heard from someone who was outbid on a home purchase by a corporation, which then turned around and asked the private party if they wished to rent it.

On Feb. 6, the House rejected House Bill 623, which would have put some restrictions on corporate purchases of single-family homes.

Paige said there were some technical problems with the measure that argued against its passage, and an attempt to create a study committee to look into the corporate-purchases issues was unsuccessful.

The N.H. House of Representatives’ Housing Committee planned to meet again on Feb. 18.

This article is being shared by partners in the Granite State News Collaborative. For more information, visit collaborativenh.org.

Categories: Government, News, Real Estate & Construction
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