1 Multi-Family Residential Development on Commercially Zoned Land; Amendment to Zoning Regulations; Conversion of Multi-Family Dwelling Units Permitted. Amend RSA 674:80 to read as follows:

674:80 Amendment to Zoning Regulations.

I. Notwithstanding any provision to the contrary, municipalities shall allow multi-family residential development on commercially zoned land, provided that adequate infrastructure, including roads, water, and sewage systems, shall be available or provided to support the development.

II.

Nothing in this section shall be interpreted to prohibit municipalities from restricting residential development in zones where industrial and manufacturing uses are permitted which may result in impacts that are incompatible with residential use, such as air, noise,     odor, or transportation impacts.

III. A municipality may require all available ground floor space or a percentage thereof to be dedicated to retail or similar uses.

IV. A municipality shall provide an exemption to any requirements regarding setbacks, height, or frontage of a building being converted to multi-family or mixed-use through adaptive reuse, provided that the building's floor area, height, and setbacks do not change .

2 Effective Date. This act shall take effect July 1, 2026 at 12:01 a.m.

1 Multi-Family Residential Development on Commercially Zoned Land; Amendment to Zoning Regulations; Conversion of Multi-Family Dwelling Units Permitted. Amend RSA 674:80 to read as follows:

674:80 Amendment to Zoning Regulations.

I. Notwithstanding any provision to the contrary, municipalities shall allow multi-family dwelling units, as defined in RS 674:43, I on commercially zoned land, provided that adequate infrastructure, including roads, water, and sewage systems, shall be available to support the development. Where infrastructure is not adequate it may be provided by the applicant in accordance with regulations. In determining whether infrastructure is adequate, the planning board may:

(a) For road infrastructure, require a traffic impact study to ascertain the potential impacts to the existing traffic conditions in the vicinity of the project, including but not limited to, the ability of existing road infrastructure to accommodate increased vehicular traffic, the availability of sidewalks, and infrastructure to ensure pedestrian safety.

(b) For water infrastructure, require that the applicant receive permission from the operator of a public water system to connect to the system or, in the absence of a public water system, receive a well permit from the department of environmental services to install a well. However, in accordance with local regulations established pursuant to RSA 674:36 or 674:44, II, a planning board may require as part of the complete application a water supply study conducted by a hydrogeologist, geologist, or engineer with experience in water supply issues if the applicant proposes to use a well that will not be subject to regulation as a community water system under RSA 485:1-a, I or a large groundwater withdrawal under RSA 485-C:2, IX-a, as the water supply for the project.

(c) For sewage infrastructure, require that the applicant receive permission from the operator of a public sewer within the boundary prescribed by RSA 147:8 or as negotiated between the applicant and operator to connect to the system.

II. The planning board may deny an application submitted pursuant to paragraph I, if the planning board determines that:

(a) The volume of traffic is not supported by the road design at the conclusion of construction or the developments layout and design does not ensure pedestrian safety;

(b) The applicant is unable to secure a source of water, or, if applicable, the water supply study determines that one or more neighboring wells will be unable to meet existing demands; or

(c) The applicant is unable to dispose of wastewater and sewage in accordance with regulations.

III. Nothing in this section shall be interpreted to prohibit municipalities from restricting residential development in zones where industrial and manufacturing uses are permitted which may result in impacts that are incompatible with residential use, such as air, noise, dust, glare, vibration, odor, or transportation impacts.

IV. A municipality may require all available ground floor space or a percentage thereof to be dedicated to retail or similar uses.

V. A municipality shall allow nonconforming structures to be converted to multi-family dwelling units or mixed use provided that the structure is not altered to further violate zoning district dimensional requirements .

** VI. Nothing in this section shall be construed to exempt proposed multi-family dwelling units on commercially zoned land from subdivision or site plan review regulations.**

2 Effective Date. This act shall take effect July 1, 2026 at 12:01 a.m.