Revision: Jan. 16, 2025, 12:05 p.m.
HB 623-FN - AS INTRODUCED
2025 SESSION
25-0662
06/08
HOUSE BILL 623-FN
SPONSORS: Rep. A. Murray, Hills. 20; Rep. H. Howard, Straf. 4; Rep. Selig, Straf. 10; Rep. Grill, Hills. 18; Rep. Seibert, Hills. 21; Rep. Read, Rock. 10; Rep. Newell, Ches. 4
COMMITTEE: Housing
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ANALYSIS
This bill restricts the acquisition of single-family and multi-family housing to natural persons with certain exceptions. It requires any non-natural person acquiring such housing under these exceptions to register and file reports with the secretary of state.
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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Matter which is either (a) all new or (b) repealed and reenacted appears in regular type.
25-0662
06/08
STATE OF NEW HAMPSHIRE
In the Year of Our Lord Two Thousand Twenty Five
Be it Enacted by the Senate and House of Representatives in General Court convened:
1 New Subdivision; Planning and Zoning; Transfer of Single and Multi-family Housing. Amend RSA 674 by inserting after section 74 the following new subdivision:
Transfer of Single and Multi-family Housing
674:75 Definitions. In this subdivision:
I. "Accessory dwelling unit" has the same meaning as in RSA 674:71.
II. "Multi-family housing" has the same meaning as in RSA 674:58, II.
III. "Single-family housing" means a building or structure containing one dwelling unit designed for occupancy by an individual household.
674:76 Transfer of Single and Multi-Family Housing.
I. Real estate with single-family housing, including single-family housing with one or more accessory dwelling units on the same parcel of land, or multi-family housing, may only be acquired, in whole or in part, by natural persons until the property has been on the market for 90 days, subject to the following exceptions:
(a) Real estate on which single-family housing, including single-family housing with one or more accessory dwelling units on the same parcel of land, or multi-family housing is located which is acquired for the purpose of nonhousing development shall be converted to another use within 5 years after the acquisition of the interest in the real property.
(b) Real estate acquired by a non-natural person for the purpose of developing single-family or multi-family housing may be held by a non-natural person for a period not to exceed 2 years after issuance of an occupancy permit, unless the non-natural person can show by a preponderance of the evidence that it has been attempting to convey the property to a natural person. For the purposes of this paragraph, a showing that the non-natural person engaged a person or firm licensed pursuant to RSA 331-A for the purpose of selling the property for the entire 12-month period preceding the expiration of the 2-year term is sufficient to satisfy the burden.
II. This subdivision shall not require divestment of real estate on which single-family housing, including single-family housing with one or more accessory dwelling units on the same parcel of land, or multi-family housing is located if such real estate was acquired by any non-natural person prior to January 1, 2026, subject to the provision that the successor in interest may not also be another non-natural person, unless provided for by another exception in this subdivision.
674:77 Registration. After January 1, 2026, any non-natural person which acquires real estate on which single-family housing, including single-family housing with one or more accessory dwelling units on the same parcel of land, or multi-family housing is located shall register the ownership with the secretary of state. The registration shall be made within 60 days of the acquisition of the interest in the real estate. The registration shall be in the form and manner prescribed by the secretary of state and shall, at a minimum, contain the information required to be captured pursuant to RSA 31:95-a.
674:78 Reports. Any non-natural person who is required to register the ownership of their property shall file a report with the secretary of state before March 31 of each year of registration. The report shall be in the form and manner prescribed by the secretary of state and shall contain sufficient information to identify the initial registration report and the status of the real estate's development.
674:79 Enforcement.
I. If the secretary of state finds that a non-natural person has acquired or holds an interest in real estate in violation of this subdivision or has failed to timely register as required pursuant to RSA 674:77 or has failed to timely report as required pursuant to RSA 674:78, he or she shall report the violation to the attorney general.
II. Investigation of violations of this subdivision shall be conducted by the attorney general. In conducting an investigation or enforcement action, the attorney general may enlist the aid of the county attorneys, municipal prosecutors appointed pursuant to RSA 41:10-a, or any other public officer.
674:80 Penalty.
I. If the court finds that the real estate in question has been acquired in violation of this subdivision or that the land has not been converted to a purpose other than single-family or multi-family housing within 5 years as provided by this subdivision, the court shall declare the land escheated to the municipality or, if in an unincorporated portion of the state, the county in which it is located. When the escheat is decreed by the court, the clerk of court shall notify the governing body of the municipality or county that the title to the real estate is vested in that subdivision of the state and authorize the subdivision of the state to follow the procedures in RSA 80, excluding the provisions requiring prior notice or right of redemption by the prior owner. Any proceeds recovered from the sale of the property shall first be used to satisfy any back taxes owed and court costs related to the escheat. Any excess proceeds shall be paid to the non-natural person divested of the property, but only in an amount not exceeding the actual cost paid by that non-natural person for the property. Proceeds remaining shall be deposited into the unassigned fund balance of the subdivision of the state in which the real estate is located.
II. A civil penalty of not more than $5,000 shall be imposed, for each offense, upon a non-natural citizen who fails to timely file the registration or report required by this subdivision.
674:81 Applicability.
I. Nothing in this subdivision shall be construed to alter existing law regarding mortgages or other lending processes utilized for the purchase of real estate where the title of the property is turned over to the natural person borrower upon payment of the loan.
II. Nothing in this subdivision shall be construed to prevent a natural person from placing their property in a grantor/revocable trust or other legal instrument which allows the individual to retain equitable title or a beneficial interest for life in the subject property.
2 Effective Date. This act shall take effect January 1, 2026.
25-0662
1/2/25
HB 623-FN- FISCAL NOTE
AS INTRODUCED
FISCAL IMPACT: This bill does not provide funding, nor does it authorize new positions.
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Estimated State Impact | ||||||
| FY 2025 | FY 2026 | FY 2027 | FY 2028 | ||
Revenue | $0 | $0 | $0 | $0 | ||
Revenue Fund(s) | None | |||||
Expenditures* | $0 | Indeterminable Increase | Indeterminable Increase | Indeterminable Increase | ||
Funding Source(s) | General Fund | |||||
Appropriations* | $0 | $0 | $0 | $0 | ||
Funding Source(s) | None | |||||
*Expenditure = Cost of bill *Appropriation = Authorized funding to cover cost of bill | ||||||
METHODOLOGY:
This bill restricts the acquisition of single-family and multi-family housing to natural persons with certain exceptions. It requires business entities acquiring such housing under these exceptions to register and file an annual report with the Secretary of State.
The Department of State indicates that this bill would require the Secretary of State to establish a new process for business entities to register their purchase of residential real estate. This would require either a new system or significant upgrades to New Hampshire’s current business registration system, resulting in considerable expenditures for the state. Without the funding to develop a Request for Proposal (RFP), the costs associated with the new system or upgrades remain indeterminable.
This bill does not provide an appropriation, nor does it authorize the Secretary of State to impose a fee for registration or for the annual report.
AGENCIES CONTACTED:
Department of State