CONCORD–Today, the New Hampshire House of Representatives voted 185-166 in support of HB 1196, which would repeal New Hampshire’s successful Housing Champions Program. This program is a voluntary, incentive-based program adopted by the state legislature in 2023 and signed into law by Governor Sununu. The purpose is straightforward: New Hampshire should reward communities that are taking steps to build more housing. 

HB 1196 was referred to House Ways and Means for further consideration.

Nick Taylor, director of Housing Action NH, issued the following statement after the vote:

“The Housing Champions Program is working. These communities are permitting new homes at a higher rate than non-Housing Champion communities and are making long-term regulatory changes that will continue to benefit the state of New Hampshire and its people for years to come. It is disappointing that state lawmakers would change course and remove tools from our toolbox that are working to address our state’s housing crisis.Ensuring every Granite Stater has a place to call home requires smart, targeted investments–like the Housing Champions Program–and regulatory reform.”

Background:

Housing Champions Program:

The Housing Champions Program is administered by the Department of Business and Economic Affairs. Municipalities can submit an application seeking a “Housing Champion” designation. If a municipality is awarded the designation by meeting the clear and measurable scoring criteria, it is eligible to apply for grants to help it fund infrastructure and develop solutions that work for the local community. 

  • The Housing Champions program is working. Housing Champion communities are permitting new homes at a higher rate than non-Housing Champion communities and are making long-term regulatory changes that will continue to benefit the state of New Hampshire for years to come. In 2024, the 28 Housing Champion communities approved 2,643 units, or 45% of the total units approved statewide. [BEA Housing Trends Report]
  • Infrastructure investments are critical to expanding housing options. In New Hampshire, only about 12 percent of buildable land has access to water or sewer infrastructure – and much of that infrastructure is aging. The Housing Champion Program creates a pathway for infrastructure funds to go towards the communities that are helping address our state’s housing shortage.
  • This program is rewarding a geographically diverse range of communities. There are 28 Housing Champion communities from all corners of the state. The program is working for both our most populous cities and rural communities.

Current Housing Champion Communities: Boscawen, Concord, Derry, Dover, Enfield, Exeter, Farmington, Gorham, Hampton, Hillsborough, Hinsdale, Hooksett, Jaffrey, Keene, Lebanon, Lincoln, Manchester, Meredith, Nashua, New London, Newmarket, Newport, Plymouth, Portsmouth, Rochester, Rye, Salem, and Somersworth.

Successes:

    • Housing Champion communities are stepping up with more housing. In 2024, the 28 Housing Champion communities approved 2,643 units, or 45% of the total units approved statewide.
    • Housing Champion Communities made specific regulatory changes as they sought housing champion status. Lebanon passed a pattern zone overlay. Boscawen made it easier to build duplexes and cluster development. Newmarket transitioned to a form-based code with increased density. Keene developed a cottage court ordinance. 

Appropriated Grants:

Municipal Housing Production Grant – $1.5M Awarded

  • Applications were received from 4 communities representing 373 newly completed deed-restricted workforce housing units. Awards were distributed proportionally.
    • Manchester: 51 housing units; $205,500 production grant
    • Nashua: 206 housing units; $828,000 production grant
    • Salem: 74 housing units; $297,000 production grant
    • Newport: 42 housing units; $169,500 production grant

Municipal Infrastructure Grant – $3.5M Awarded

  • Seven municipalities received funding to implement critical infrastructure improvements that directly support housing creation. Projects include upgrades to sewer, water, electrical, and fire suppression systems.
    • Concord: Sewer upgrade; $859,689 infrastructure grant
    • Dover: Water main upgrade; $859,689 infrastructure grant
    • Lebanon: Site Improvements; $158,805 infrastructure grant
    • Manchester: Fire/Electric; $116,753 infrastructure grant
    • Newport: Sewer Feasibility; $234,375 infrastructure grant
    • Rochester: Sewer/Water; $411,000 infrastructure grant
    • Salem: Water System; $859,689 infrastructure grant

History: Housing Champions is an innovative program that, while going into effect in 2023, has been in development for years. The original idea for the Housing Champions Program was developed in 2019 as part of a task force convened by Governor Sununu. The Task Force included representatives from the development community, bipartisan state legislatures, and representatives from local municipalities, among others. There was bipartisan support from the proposal in the 2023 budget process. 

HB 1196 Would Repeal the Housing Champions Program:

  • Current grants at risk. The fiscal note on HB 1196 and testimony from the prime sponsor, suggest that the existing grant funds that are currently appropriated, but not expended, could be terminated if the program is repealed. Terminating the existing contracts would harm municipalities that have already begun these projects.     
  • This bill has no appropriation. While the grant programs have proven to be a strong incentive and productive framework for ensuring grant funds are going towards the communities that are taking action, HB 1196 does not make any new appropriations. By opposing HB 1196, legislators are allowing existing infrastructure projects to continue, maintaining the programmatic framework for an incentive-based state and local housing partnerships, and allowing future legislatures to make a decision on budget choices. 

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Housing Action NH works to improve state and federal policy so everyone in New Hampshire has a place to call home.