Housing (Land Use)

SB 175 allows municipalities to enforce valid private covenants (like neighborhood rules set by homeowners' associations) but prohibits them from requiring or encouraging such covenants as a condition for zoning or land use approvals. The bill specifically exempts workforce housing developments from this prohibition, permitting municipalities to require covenants for these projects under separate rules. This directly affects municipalities (which must adjust their approval processes), developers (especially for workforce housing), and property owners with existing covenants. The law takes effect 60 days after passage, creating clear boundaries for when covenants can be enforced versus when they cannot be mandated.

HB 1008 clarifies the definition of "inclusionary zoning" to include voluntary incentives like density bonuses or streamlined applications that encourage affordable housing development. It expands local government options for promoting affordable housing and creates a new process allowing developers to propose alternative compliance methods for inclusionary zoning requirements. If a planning board disagrees with an applicant's alternative solution, the bill permits third-party review under existing law. This directly affects municipalities establishing housing policies and developers seeking to build affordable units under local ordinances. The changes take effect 60 days after enactment.

SB 435 removes the requirement that property owners must prove an unusual hardship to obtain a zoning variance from a local zoning board. This directly affects homeowners, developers, and businesses seeking to modify land use under current zoning rules, as well as the zoning boards reviewing these requests. The bill repeals two specific sections of state law (RSA 674:33, I(a)(2)(E) and I(b)) that previously mandated hardship assessments for variances. The change simplifies the process by allowing boards to grant variances without evaluating hardship, effective 60 days after passage.

HB 1417 allows New Hampshire towns, cities, and villages to implement a land value tax (LVT) system, where land is taxed at a higher rate than buildings or improvements. Municipalities must hold a public hearing and adopt the system via local vote, setting separate tax rates for land value (higher) and improvement value (lower or zero), with a transition plan. The bill requires transparent public reporting of parcel-level land and improvement values and appropriates funds to the Department of Revenue Administration for implementation support. It ensures existing education and county taxes remain unchanged, and all state tax exemptions still apply first to building improvements before land. This policy shifts the tax burden from buildings to land ownership, aiming to encourage efficient land use and housing development.