Revision: Jan. 2, 2026, 10:02 a.m.
HB 1764-FN - AS INTRODUCED
2026 SESSION
26-3059
06/07
HOUSE BILL 1764-FN
SPONSORS: Rep. de Vries, Rock. 29
COMMITTEE: Housing
─────────────────────────────────────────────────────────────────
ANALYSIS
This bill establishes municipal workforce housing targets, reporting requirements, zoning review procedures, and a special property tax assessment for underperformance, with proceeds funding a revolving loan program for housing development and infrastructure.
- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -
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Matter which is either (a) all new or (b) repealed and reenacted appears in regular type.
26-3059
06/07
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 Subdivision; Municipal Workforce Housing Targets. Amend RSA 12-O by inserting after section 70 the following new subdivision:
Municipal Workforce Housing Targets
12-O:70-a Municipal Workforce Housing Targets.
I. The department of business and economic affairs, in partnership with regional planning commissions, shall establish annual workforce housing targets for each municipality for the next 10 years. In this subdivision, "municipality" means any city, town, unincorporated town or unorganized place.
II. Targets shall be based on:
(a) Amount of developable and redevelopable land;
(b) Access to water, infrastructure, and public transportation;
(c) Proximity to employment centers; and
(d) Existing workforce housing stock, as defined in RSA 674:58, IV.
III. Municipalities with less workforce housing shall be assigned proportionally higher targets.
IV. The cumulative statewide housing targets shall equal 125 percent of the state’s projected annual workforce housing need, with an assumed 25 percent overage to account for underperformance.
12-O:70-b Annual Reporting. The department of business and economic affairs shall publish an annual report listing the total number of new, or in progress where construction has officially commenced, or both, workforce housing units in each municipality and the percentage of each municipality’s annual target achieved.
12-O:70-c Zoning Review Requirement.
I. Beginning January 1, 2028, any municipality that has achieved less than 50 percent of its cumulative workforce housing target shall:
(a) Partner with the department of business and economic affairs and its regional planning commission to conduct a comprehensive review of its zoning ordinances;
(b) Identify impediments to workforce housing development; and
(c) Develop an actionable plan to improve workforce housing outcomes.
II. Municipalities shall retain discretion over whether to implement recommended changes.
12-O:70-d Special Assessments for Underperformance.
I. Beginning in 2028, any municipality that falls below 50 percent of their cumulative workforce housing targets shall be subject to a special property tax assessment.
II. The special property tax assessment for properties assessed above the following thresholds shall be calculated as follows:
(a) For property assessed at $1,500,000, apply a rate of $1 in tax per $1,000 of assessed value;
(b) For property assessed at $2,000,000, apply a rate of $1.50 in tax per $1,000 of assessed value;
(c) For property assessed at $2,500,000, apply a rate of $2 in tax per $1,000 of assessed value;
(d) For property assessed at $3,000,000, apply a rate of $2.50 in tax per $1,000 of assessed value; and
(e) For property assessed at $3,500,000 and above, apply a rate of $3 in tax per $1,000 of assessed value.
III. The special property tax assessment shall remain in effect until the municipality reaches:
(a) 75 percent of its cumulative target (first year below threshold);
(b) 85 percent (second year); and
(c) 90 percent (third year or beyond).
IV. Municipalities shall collect and remit assessment proceeds to the state immediately.
12-O:70-e Workforce Housing Revolving Loan Fund.
I. The department shall establish and manage a special revolving loan fund, separate from the general fund, using proceeds from the special tax assessments under RSA 12-O:70-d.
II. The fund shall offer below-market-rate loans to developers of multi-family, year-round workforce housing and municipalities for infrastructure upgrades tied to shovel-ready workforce housing projects.
III. Loan prioritization shall be based on number of housing units provided, speed of development and direct linkage to workforce housing outcomes.
12-O:70-f Administration. The department of business and economic affairs, division of planning and community development, shall administer this subdivision and may adopt rules under RSA 541-A as necessary to implement its provisions.
2 New Subparagraph; New Funding. Amend RSA 6:12, I(b) by inserting after subparagraph (410) the following new subparagraph:
(411) Moneys deposited in the workforce housing revolving loan fund as established in RSA 12-O:70-e.
3 Effective Date. This act shall take effect April 1, 2026.
26-3059
Revised 12/30/25
HB 1764-FN- FISCAL NOTE
AS INTRODUCED
FISCAL IMPACT: This bill does not provide funding, nor does it authorize new positions.
|
| |||||
Estimated State Impact | ||||||
| FY 2026 | FY 2027 | FY 2028 | FY 2029 | ||
Revenue | $0 | Indeterminable Increase | ||||
Revenue Fund(s) | Workforce Housing Revolving Loan Fund | |||||
Expenditures* | $0 | $368,000 | Indeterminable Increase $385,000+ | Indeterminable Increase $403,000+ | ||
Funding Source(s) | General Fund and Workforce Housing Revolving Loan Fund | |||||
Appropriations* | $0 | $0 | $0 | $0 | ||
Funding Source(s) | None | |||||
*Expenditure = Cost of bill *Appropriation = Authorized funding to cover cost of bill | ||||||
| ||||||
Estimated Political Subdivision Impact | ||||||
| FY 2026 | FY 2027 | FY 2028 | FY 2029 | ||
Local Revenue | $0 | $0 | $0 | $0 | ||
Local Expenditures | $0 | Indeterminable Increase | ||||
METHODOLOGY:
This bill requires the Department of Business and Economic Affairs, in collaboration with regional planning commissions, to set annual workforce housing targets for each municipality over a 10-year period. These targets are based on factors such as available land, infrastructure access, proximity to employment centers, and existing housing stock. Municipalities falling below 50% of their cumulative targets must undergo zoning reviews and develop improvement plans, though implementation of recommendations remains discretionary. Starting in 2028, underperforming municipalities will face a tiered special property tax assessment on high-value properties, with proceeds going to the newly established Workforce Housing Revolving Loan Fund.
The Department of Business and Economic Affairs states this bill requires the Department to develop Municipal Workforce Housing Targets. The Department states to develop the targets and operate the program will involve extensive research with regional planning commissions and 234 municipalities for collection of property tax funds, creation of revolving loan fund and administration and development of rules and enforcement activity. The Department notes to administer these new tasks would require an administrator (19-3050 Regional Planners 5 – SOC 19, pay band 9, step 1) and at least three management analysts (13-1110 Management Analysis-2 – SOC 13, pay band 5; step 1). The total costs for these four positions is $368,000 in FY 2027, $385,000 in FY 2028 and $403,000 in FY 2029. The Department is unable to estimate when there will be enough funds in the Workforce Housing Revolving Loan Fund to support the positions and would require a General Fund appropriation to fund these positions.
Positions Requested by BEA | FY 2027 | FY 2028 | FY 2029 |
Administrator x1 (19-3050 Regional Planners 5 – SOC 19, pay band 9, step 1) | $107,000 | $112,000 | $118,000 |
Management Analysts x3 (13-1110 Management Analysis-2 – SOC 13, pay band 5; step 1). | $261,000 | $273,000 | $285,000 |
Total Salary, Benefits and Operating Expenses | $368,000 | $385,000 | $403,000 |
The New Hampshire Municipal Association (NHMA) states municipalities may face costs related to zoning updates, reporting requirements, tax assessment administration, and an increase in property assessment appeals, estimated at under $10,000 per municipality. Additionally, legal disputes over housing mandates could lead to an indeterminable increase in expenses, as the number of potential cases is unknown. Infrastructure upgrades may exceed $1 million in some municipalities, though funding may be available through the new Workforce Housing Revolving Loan Fund. Additionally, there are no provisions for an appeal or hardship waiver process for municipalities seeking to challenge their assigned housing targets.
AGENCIES CONTACTED:
Department of Business and Economic Affairs and New Hampshire Municipal Association