7/17/26: Housing Matters Newsletter

Welcome to a summer edition of our Housing Matters Newsletter!

It’s been a few weeks since we’ve been in your inbox, and A LOT has happened. The Governor acted on all the housing bills that passed this legislative session and, down in Washington, DC, the bipartisan 21st Century Road to Housing Act – a comprehensive federal package that includes dozens of reforms to help communities build more homes, preserve existing affordable housing, and reduce unnecessary barriers to development – became law.

In this newsletter, we’ll take you through the state legislative updates and key provisions of the 21st Century Road to Housing Act.

As a reminder, there is no Housing Matters Zoom meeting in July or August. We will pick up our monthly meetings on the third Friday of each month again in September.

Finally, on July 1, 2026, New Hampshire’s homes-near-jobs bill from 2025 officially took effect. This law allows multi-family development in commercial zones, which opens up more opportunities for attainable housing options near jobs and existing infrastructure. Check out this recently released study from The Pew Charitable Trusts about the economic benefits of building homes near jobs.

As always, if you have questions about the legislation we mention in the newsletter or housing-related proposals that aren’t included, please don’t hesitate to reach out.

If you were forwarded this newsletter and would like to receive future updates, you can sign up here.

Best,

Nick Taylor

Executive Director

Housing Action NH

nick@housingactionnh.org

The Governor’s Action on 2026 Legislation

Over the last few weeks, legislation passed by both the House and the Senate proceeded through the enrolled bill process and made it to the Governor’s desk. She has now acted on all housing related legislation.

If the Governor signed legislation, it goes into effect on the effective date specified in the legislation. The effective date is typically determined by the type of policy changes outlined in the bill. For example, legislation that requires municipal adoption or department preparation is often scheduled to take effect six to twelve months in the future, while administrative changes that can be instituted quickly may take effect upon signature or 30 days after signature.

Here are a few noteworthy updates on what legislation the Governor signed and vetoed:

Legislation the Governor Signed: 

HB 1010, relative to multi-family residential development on commercially zoned land. This legislation – along with HB 1588 – added clarity to last session’s residential-in-commercial law. It specifically added provisions addressing how municipalities and developers should interpret the requirement for adequate infrastructure. This clarity will help add predictability to the process and limit legal disputes. Housing Action NH supported this legislation.

HB 1042, raising the unified contingent credit limit and relative to the cap on outstanding obligations for which the housing finance authority is allowed. This legislation raised New Hampshire Housing’s debt limit to ensure its affordable housing financing programs can continue. New Hampshire Housing’s debt limit does not impact the state’s credit rating or the general fund appropriations. Housing Action NH supported this legislation.

HB 1079, allowing accessory dwelling units to be built within or attached to certain non-conforming structures. This legislation clarified that municipalities must allow existing non-conforming structures to be converted into ADUs provided the building’s footprint does not change. Housing Action NH supported this legislation.

HB 1103, allowing municipalities to utilize community revitalization tax relief credits on a wider variety of properties and structures. This legislation provides municipalities seeking to use the 79-E program with greater flexibility by allowing new construction to qualify for the incentive and enabling municipalities to set affordability standards. Housing Action NH supported this legislation.

HB 1588, relative to the regulation of accessory parking for vehicles by local legislative bodies and multifamily housing within commercial districts by municipalities. This legislation – along with HB 1010 – adds clarity to last year’s residential-in-commercial zones statute. HB 1588 places commonsense guardrails on what local municipalities can regulate when implementing the residential-in-commercial law. This law allows municipalities to continue with site plan review, height, setback, and frontage requirements, but limits their ability to regulate other elements of development to ensure the goals of the legislation – allowing multi-family homes near existing infrastructure – are upheld. Housing Action NH supported this legislation.

HB 1681, relative to the definition, inspection, and local approval of tiny houses and yurts as innovative housing structures. This legislation clarified how municipalities and code enforcement agencies should regulate tiny homes, yurts, and other innovative housing structures. Housing Action NH supported this legislation.

SB 56, relative to consolidating the New Hampshire health and education facilities authority within the business finance authority and establishing a surplus land revitalization program. This legislation updated the process for selling surplus state-owned land. Housing Action NH was neutral on this legislation.

SB 415, relative to a certain exemption in interest in condominium units and abbreviated registrations. This legislation raises the threshold for a Department of Justice condo development review from 10 units to 25 units, and establishes a study commission to consider future legislative changes. Condos can provide a more attainable homeownership option, but the review process can be time-consuming and burdensome, especially for smaller projects, driving up costs. Housing Action NH supported this legislation.

SB 490, establishing a task force to assess the development of housing at Great Bay Community College and authorizing the college the right to use vacant property for the purpose of developing housing. Housing Action NH supported this legislation.

SB 492, authorizing the Department of military affairs and Veterans Services to license and lease property in which the department holds a property interest. Housing Action NH supported this legislation.

SB 564, prohibiting certain municipal development restrictions. This legislation prohibits municipalities from enacting local ordinances regarding the number of homes on a dead-end road or the length of a road beyond fire safety standards. This legislation also provides flexibility in the placement of utilities within buffer areas. Housing Action NH supported this legislation.

The Governor vetoed two housing-related proposals:

HB 1336, relative to regulated conditional deposits. Housing Action NH opposed this legislation because it would allow landlords to charge renters a security deposit equal to two months’ rent if the tenant meets certain criteria, adding costs at a time when many Granite Staters already struggle to afford housing. This is the Governor’s veto message:

“This bill seeks to address the housing access problem of renters who do not meet existing landlord-defined renter criteria such as credit history, income, prior evictions, or references. While improving housing access is essential, requiring these prospective renters to provide potentially thousands of dollars more than current law upfront would impede access to housing. Moreover, the bill’s language is not clear on how long a landlord can keep those funds and allows landlords discretion to unfairly withhold tenants’ deposits. For these reasons, I have vetoed House Bill 1336.”

HB 1726, relative to the sale of surplus state-owned land and establishing a commission to study the sale of state-owned property. This is the Governor’s veto message:

“I agree that we need to improve the management of state-owned assets such as surplus land. However, the change of law in this bill limits the proceeds of sales or leases to the fund originally used to purchase the property. This is not an efficient or fiscally prudent structure for allocating revenues and does not improve state management of surplus land. For that reason, I am vetoing House Bill 1726.”

The 21st Century Road to Housing Act

Last Friday, the bipartisan 21st Century Road to Housing Act became law. This legislation combined more than 60 individual proposals into a single package designed to address housing supply. This legislation marked the most comprehensive housing reform passed by Congress in decades.

Rather than relying on a single solution, the bill recognizes that solving the housing shortage will require coordinated action among federal, state, and local governments, as well as support for many different types of housing. The legislation passed with overwhelming bipartisan support in both the House and Senate.

You can read summaries produced by national housing organizations, including the Bipartisan Policy Center and the National Low Income Housing Coalition,

Here are some key provisions that we’ve identified for New Hampshire:

Expanding Manufactured and Modular Housing (Sections 301, 302, 303, and 304.)

Several provisions modernize federal policies for manufactured housing, expand financing options, support modular construction, and make it easier to finance accessory dwelling units.

Together, these changes strengthen one of the nation’s most affordable paths to homeownership – a particularly important opportunity in New Hampshire, which has long been a national leader in resident-owned manufactured housing communities.

Section 301 eliminates the permanent chassis requirement for manufactured homes, creating more construction flexibility. Sections 302 and 303 both address potential Federal Housing Administration (FHA) barriers. Given that the FHA insures mortgages issued by private lenders, this will help people finance manufactured and modular homes (Sec. 303 also helps with ADU financing). Section 304 reauthorizes the PRICE Act for seven years. This program provides grants for the repair and improvement of existing manufactured home communities, including the often expensive infrastructure upgrades.

Preserving Affordable Rural Housing (Section 502)

One of the most significant New Hampshire priorities included in the bill would preserve affordable rural rental housing by allowing USDA rental assistance to continue even after older mortgages mature. Without this reform, many rural affordable housing developments risk losing rental assistance during refinancing or preservation efforts, putting existing affordable homes at risk. This decoupling policy change has long been championed by Senator Shaheen.

Making Federal Housing Programs More Flexible (Sections 204 and 501)

The legislation modernizes the HOME and Community Development Block Grant (CDBG) programs by expanding eligible activities, increasing flexibility for local communities, simplifying environmental review requirements, and providing additional clarity around Build America, Buy America implementation (for HOME). These changes should make existing federal housing resources more effective and easier to use.

Supporting Local Housing Reforms (Sections 107, 207, and 208)

Several sections provide technical assistance, planning grants, and competitive funding for communities that modernize zoning, streamline permitting, and remove unnecessary barriers to housing development. These tools help local governments implement reforms that support additional housing while maintaining local decision-making.

Reducing Unnecessary Federal Red Tape (Sections 103, 205, and 206)

The package also streamlines several federal environmental review and approval processes for housing projects, helping reduce delays and costs while maintaining important health and safety protections.

Continuing Efforts to Reform Build America, Buy America (BABA) Housing Provisions

While the 21st Century Road to Housing Act includes some improvements, significant challenges remain in implementing the Build America, Buy America (BABA) requirements for affordable housing.

Housing Action NH continues to hear from affordable housing developers across New Hampshire that current BABA requirements are increasing costs and delaying projects. Many of the more than 1,500 components used in multifamily housing are simply unavailable from domestic manufacturers, and the waiver process is taking months to complete (if at all), costing thousands of dollars and putting other financing at risk.

Two key updates have occurred since we last sent out our newsletter.

First, HUD has requested public comment on these challenges, including information on delays and on products that cannot be sourced in the United States. The public comment period closes on July 20th, so if you haven’t submitted comments yet and would like to, please do so ahead of the deadline. Here is the link.

Second, Congresswoman Maggie Goodlander (D-NH) and Congressman Mike Flood (R-NE) introduced bipartisan legislation that would pause implementation for housing projects while establishing a faster, more predictable waiver process.

Housing Action NH is actively working with organizations throughout the region on coordinated advocacy. Clear, local examples are the most impactful advocacy tool, so please continue to reach out if you have any negative BABA impacts to share.