Revision: Nov. 2, 2023, 3:26 p.m.
2024 SESSION
24-2217.0
12/08
HOUSE BILL [bill number]
AN ACT relative to authorizing municipalities to stabilize rent increases in rental housing.
SPONSORS: [sponsors]
COMMITTEE: [committee]
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ANALYSIS
This bill authorizes municipalities to enact and enforce rent stabilizing ordinances.
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Explanation: Matter added to current law appears in bold italics.
Matter removed from current law appears [in brackets and struckthrough.]
Matter which is either (a) all new or (b) repealed and reenacted appears in regular type.
24-2217.0
12/08
STATE OF NEW HAMPSHIRE
In the Year of Our Lord Two Thousand Twenty Four
AN ACT relative to authorizing municipalities to stabilize rent increases in rental housing.
Be it Enacted by the Senate and House of Representatives in General Court convened:
1 New Section; Municipal Powers: Rent Stabilization. Amend RSA 31 by inserting after section 39-e the following new section:
31:39-f Rent Stabilization
I. Definitions. In this section:
(a) “Allowable rent increase” means an increase in a tenant’s monthly rent that does not exceed the maximum determined in accordance with the provisions of an ordinance authorized by this chapter.
(b) "Board or body" shall mean, the governmental unit designated to create rules, implement and enforce the provisions of an ordinance enacted pursuant to this chapter.
(c) “Ordinance” means any charter, ordinance, code, bylaw, vote, resolution or regulation enacted by, a governing body or legislative body of any city, town or village district or municipality authorized to limit rent increases pursuant to this chapter.
(d) "Fair return on investment" means an amount sufficient to allow a just and reasonable rate of return, to encourage the investment of capital in the rental housing market, to fairly compensate investors for the risks they have assumed, and to achieve minimum constitutionally protected standards. For the purposes of enforcement of an ordinance enacted pursuant to this chapter, a fair return on investment must be calculated using maintenance of net operating income methodology, as that term is used in other jurisdictions with similar ordinances.
(e) "Dwelling" shall mean any building, structure, trailer, mobile home or camp or part thereof, used and occupied for human habitation or intended to be so used and includes any appurtenances
(f) “Covered property” means all residential rental dwellings except:
(1) Restricted properties as defined in RSA 540:1-a, IV.
(2) A dwelling that was purchased at foreclosure or obtained by tax deed.
(3) A dwelling where the initial purchase was at municipal or financial institution foreclosure.
(4) A dwelling constructed after the rent stabilization ordinance was enacted and it has been less than 15 years since the construction.
(5) An accessory dwelling unit as defined in 674:71.
(6) A dwelling where the rent is controlled or subsidized by federal, state, or local government, or has been funded in whole or in part through the federal Low Income Tax Credit program administered by the federal Internal Service. This exemption shall not apply to a rental unit occupied by a tenant who is the holder of a portable housing choice voucher administered by a local housing authority or the New Hampshire housing finance authority.
II. The governing body of any municipality may enact ordinances that limit the amount of rent that an owner of a covered property can increase rent over a 12 month period and require up to 120 days prior written notice to the tenant of any rent increase, sale of the property and or withdrawal of the property from the residential rental market. The ordinance or regulation cannot limit the allowable rent increase or cap to less than 5 percent plus the percentage increase in the Consumer Price Index for the New England region over the preceding 12 months as published by the Bureau of Labor Statistics.
III. Owners of covered properties that can demonstrate that increased property taxes, utility costs or necessary repairs to the covered property require exemption from the ordinance in order for them to realize fair rental operating income shall be exempt from the limit established by the ordinance.
IV. Any municipality that enacts an ordinance pursuant to this section shall designate a board or body to adopt rules necessary to implement the ordinance, establish and make public the annual limit on rental increases and accept owner applications for exemption from the limits established.
V. If an owner of a covered property is aggrieved by an order of the board or body denying their application for exemption they may appeal to the city council or mayor and board of aldermen in the case of cities, or to the board of selectmen in the case of towns. Said city council or mayor and board of aldermen or board of selectmen shall hold a public hearing upon said appeal, due notice of said hearing having first been given to the public agency and to the owner. The city council or mayor and board of aldermen or board of selectmen may affirm or revoke the order of the public agency, or they may modify the same in accordance with their findings.
VI. Any ordinance enacted pursuant to this chapter shall expire 3 years from the effective date of the ordinance. The 3 year deadline shall be tolled for any period of time during which the municipality is enjoined from enforcing the ordinance by a court or competent jurisdiction. Matters under review pursuant to this chapter that commenced prior to the 3 year deadline shall be brought to a full conclusion even if the conclusion postdates the expiration date of the ordinance.
2 Effective Date. This act shall take effect upon its passage.