1 New Subparagraph; Innovative Land Use Controls. Amend RSA 674:21, I by inserting after subparagraph (n) the following new subparagraph:

(o) Affordable housing investment fees.

2 New Section; Affordable Housing Investment Fees. Amend RSA 674:21 by inserting after section VII the following new section:

VIII. As used in this section, "affordable housing investment fee" means a fee or assessment imposed upon development, including subdivision, building construction, or other land use change, which does not meet local inclusionary zoning ordinances or regulations in order to help the municipality invest in affordable housing units. All affordable housing investment fee ordinances shall be subject to the following:

(a) Any affordable housing investment fee shall be accounted for separately, shall be segregated from the municipality's general fund, may be spent upon order of the municipal governing body, shall be exempt from all provisions of RSA 32 relative to limitation and expenditure of town moneys, and shall be used solely for investment in affordable housing within the municipality. Affordable housing investment fees shall only be expended to the New Hampshire housing finance authority, as established by RSA 204-C:2, the community development finance authority, as established by RSA 162-L:2, a housing authority of the municipality, as established under RSA 203:4, or a non-profit, established for any of the purposes outlined under RSA 292:1, registered with the secretary of state's office and in good standing.

(b) All affordable housing investment fees imposed pursuant to this section shall be assessed at the time of planning board approval of a subdivision plat or site plan. When no planning board approval is required, or has been made prior to the adoption or amendment of the affordable housing investment fee ordinance, affordable housing investment fees shall be assessed prior to, or as a condition for, the issuance of a building permit or other appropriate permission to proceed with development. Affordable housing investment fees shall be intended to reflect the need for additional affordable housing units in the municipality. Affordable housing investment fees shall be collected at the time a certificate of occupancy is issued. If no certificate of occupancy is required, affordable housing investment fees shall be collected when the development is ready for its intended use. Nothing in this subparagraph shall prevent the municipality and the assessed party from establishing an alternate, mutually acceptable schedule of payment of affordable housing investment fees in effect at the time of subdivision plat or site plan approval by the planning board. If an alternate schedule of payment is established, municipalities may require developers to post bonds, issue letters of credit, accept liens, or otherwise provide suitable measures of security so as to guarantee future payment of the assessed affordable housing investment fees.

(c) Unless otherwise specified in the ordinance, any decision under an affordable housing investment fee ordinance may be appealed in the same manner provided by statute for appeals from the officer or board making that decision, as set forth in RSA 676:5, RSA 677:2 through 14, or RSA 677:15, respectively.

(d) The ordinance may also provide for a waiver process, including the criteria for the granting of such a waiver.

(e) Neither the adoption of an affordable housing investment fee ordinance, nor the failure to adopt such an ordinance, shall be deemed to affect existing authority of a planning board over subdivision or site plan review, except to the extent expressly stated in such an ordinance.

(f) No later than 60 days following the end of the fiscal year, any municipality having adopted an affordable housing investment fee ordinance shall prepare a report listing all expenditures of affordable housing investment fee revenue for the prior fiscal year.

3 Effective Date. This act shall take effect 60 days after its passage.

1 New Subparagraph; Innovative Land Use Controls. Amend RSA 674:21, I by inserting after subparagraph (n) the following new subparagraph:

(o) Affordable housing investment fees.

2 New Section; Affordable Housing Investment Fees. Amend RSA 674:21 by inserting after section VII the following new section:

VIII. As used in this section, "affordable housing investment fee" means a fee or assessment imposed upon development, including subdivision, building construction, or other land use change, which does not meet local inclusionary zoning ordinances or regulations in order to help the municipality invest in affordable housing units. All affordable housing investment fee ordinances shall be subject to the following:

(a) Any affordable housing investment fee shall be accounted for separately, shall be segregated from the municipality's general fund, may be spent upon order of the municipal governing body, shall be exempt from all provisions of RSA 32 relative to limitation and expenditure of town moneys, and shall be used solely for investment in affordable housing within the municipality. Affordable housing investment fees shall only be expended to the New Hampshire housing finance authority, as established by RSA 204-C:2, the community development finance authority, as established by RSA 162-L:2, a housing authority of the municipality, as established under RSA 203:4, or a non-profit, established for any of the purposes outlined under RSA 292:1, registered with the secretary of state's office and in good standing.

(b) All affordable housing investment fees imposed pursuant to this section shall be assessed at the time of planning board approval of a subdivision plat or site plan. When no planning board approval is required, or has been made prior to the adoption or amendment of the affordable housing investment fee ordinance, affordable housing investment fees shall be assessed prior to, or as a condition for, the issuance of a building permit or other appropriate permission to proceed with development. Affordable housing investment fees shall be intended to reflect the need for additional affordable housing units in the municipality. Affordable housing investment fees shall be collected at the time a certificate of occupancy is issued. If no certificate of occupancy is required, affordable housing investment fees shall be collected when the development is ready for its intended use. Nothing in this subparagraph shall prevent the municipality and the assessed party from establishing an alternate, mutually acceptable schedule of payment of affordable housing investment fees in effect at the time of subdivision plat or site plan approval by the planning board. If an alternate schedule of payment is established, municipalities may require developers to post bonds, issue letters of credit, accept liens, or otherwise provide suitable measures of security so as to guarantee future payment of the assessed affordable housing investment fees.

(c) Unless otherwise specified in the ordinance, any decision under an affordable housing investment fee ordinance may be appealed in the same manner provided by statute for appeals from the officer or board making that decision, as set forth in RSA 676:5, RSA 677:2 through 14, or RSA 677:15, respectively.

(d) The ordinance may also provide for a waiver process, including the criteria for the granting of such a waiver.

(e) Neither the adoption of an affordable housing investment fee ordinance, nor the failure to adopt such an ordinance, shall be deemed to affect existing authority of a planning board over subdivision or site plan review, except to the extent expressly stated in such an ordinance.

(f) No later than 60 days following the end of the fiscal year, any municipality having adopted an affordable housing investment fee ordinance shall prepare a report listing all expenditures of affordable housing investment fee revenue for the prior fiscal year.

3 Effective Date. This act shall take effect 60 days after its passage.