Revision: Dec. 10, 2025, 10:01 a.m.
HB 1588-FN - AS INTRODUCED
2026 SESSION
26-3234
07/06
HOUSE BILL 1588-FN
SPONSORS: Rep. Sweeney, Rock. 25
COMMITTEE: Housing
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ANALYSIS
This bill establishes special assessment districts and expands the housing infrastructure grant program to allow for municipal upgrades linked to new housing.
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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Matter which is either (a) all new or (b) repealed and reenacted appears in regular type.
26-3234
07/06
STATE OF NEW HAMPSHIRE
In the Year of Our Lord Two Thousand Twenty-Six
Be it Enacted by the Senate and House of Representatives in General Court convened:
1 New Chapter; Special Assessment Districts. Amend RSA by inserting after chapter 162-U the following new chapter:
CHAPTER 162-V
SPECIAL ASSESSMENT DISTRICTS
162-V:1 Authority. Any city or town may, by 2/3 vote of its governing body and a majority vote of its legislative body, establish one or more special assessment districts for the purpose of financing public infrastructure improvements necessary to serve new development.
162-V:2 Improvements Authorized.
I. Infrastructure improvements eligible for financing under this chapter shall include:
(a) Roads, sidewalks, street lighting, and traffic control devices;
(b) Water mains, sewer lines, stormwater management facilities, and related appurtenances;
(c) Utility extensions directly serving the district; and
(d) Streetscape or parking improvements incidental to development.
II. General government buildings, schools, or facilities that do not directly and specially benefit parcels within the district shall not be financed under this chapter.
162-V:3 Apportionment of Costs.
I. Assessments shall be levied only against properties that receive a direct and ascertainable benefit from the improvements.
II. The governing body shall determine the method of apportionment, which may include frontage, lot size, number of units, assessed value, or other reasonable metric.
III. No parcel shall be assessed in an amount greater than the special benefit conferred upon it.
162-V:4 Financing.
I. Municipalities may issue bonds to finance improvements within the district, to be repaid solely from assessments levied under this chapter.
II. Assessments may be collected in annual installments over a period not to exceed 20 years.
III. Assessments shall constitute a lien on the property with the same priority and enforcement as property taxes.
162-V:5 Procedure.
I. Establishment of a district requires:
(a) Adoption by 2/3 vote of the governing body after public notice and hearing; and
(b) Ratification by majority vote of the legislative body at the next regular municipal election.
II. Notice of the proposed district shall be mailed to each affected property owner and published in a newspaper of general circulation at least 14 days prior to the hearing.
162-V:6 Appeals. Any property owner subject to an assessment may appeal the apportionment of costs to the governing body within 30 days of notice, and thereafter to the superior court pursuant to RSA 677.
162-V:7 Dissolution. A district shall dissolve upon repayment of all obligations or earlier by vote of the governing body, provided all costs have been satisfied.
2 Department of Business and Economic Affairs; Expansion of Housing Infrastructure Municipal Grant Program. The department of business and economic affairs shall expand its housing infrastructure municipal grant program to allow for sewer, water, and road upgrades for new housing units.
3 Department of Business and Economic Affairs, Appropriation. The sum of $1 for the fiscal year ending June 30, 2027 is hereby appropriated to the department of business and economic affairs for the purpose of providing grants for sewer, water, and road upgrades for new housing units under its housing infrastructure municipal grant program. The governor is authorized to draw a warrant for said sums out of any money in the treasury not otherwise appropriated.
4 Effective Date. This act shall take effect 60 days after its passage.
26-3234
12/8/25
HB 1588-FN- FISCAL NOTE
AS INTRODUCED
FISCAL IMPACT: This bill does not authorize new positions.
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Estimated State Impact | ||||||
| FY 2026 | FY 2027 | FY 2028 | FY 2029 | ||
Revenue | $0 | $0 | $0 | $0 | ||
Revenue Fund(s) | None | |||||
Expenditures* | $0 | Indeterminable Increase | ||||
Funding Source(s) | General Fund | |||||
Appropriations* | $0 | $1 | $0 | $0 | ||
Funding Source(s) | General Fund | |||||
*Expenditure = Cost of bill *Appropriation = Authorized funding to cover cost of bill | ||||||
| ||||||
Estimated Political Subdivision Impact | ||||||
| FY 2026 | FY 2027 | FY 2028 | FY 2029 | ||
County Revenue | $0 | $0 | $0 | $0 | ||
County Expenditures | $0 | $0 | $0 | $0 | ||
Local Revenue | $0 | $0 | $0 | $0 | ||
Local Expenditures | $0 | Indeterminable Increase less than $10,000 per municipality | ||||
METHODOLOGY:
This bill enables municipalities to establish special assessment districts by 2/3 vote of its governing body, requires the Department of Business and Economic Affairs (DBEA) to expand the housing infrastructure grant program to allow for sewer, water, and road upgrades for new housing units, and appropriates $1 in fiscal year 2027 to the DBEA for this purpose.
The New Hampshire Municipal Association states that if a municipality chooses to establish one or more special assessment districts, it will incur startup and ongoing administrative, accounting, and legal costs estimated at under $10,000 per municipality. However, the total impact is indeterminable, as it depends on how many municipalities decide to create such districts.
The Department of Business and Economic Affairs states since only $1 is appropriated the Department will have to wait for additional funding for the purpose of providing grants for sewer, water, and road upgrades for new housing units under its housing infrastructure municipal grant program.
The overall fiscal impact is indeterminable as it is unknown how many municipalities will vote to establish special assessment districts.
AGENCIES CONTACTED:
Department of Business and Economic Affairs and New Hampshire Municipal Association