New Hampshire lawmakers push for ADU legislation to tackle housing affordability crisis

On January 28, 2025, the New Hampshire House Committee on Housing convened to discuss the pressing issue of housing affordability, with a particular focus on accessory dwelling units (ADUs). The meeting highlighted the growing need for innovative housing solutions in the state, especially in areas like Sullivan County, where economic growth is driving demand for housing.

One of the key testimonies came from Representative Damon, who emphasized the importance of ADUs in helping families remain in their homes while contributing to local property taxes. He shared a poignant example from a constituent struggling to find affordable housing despite having a substantial down payment. The representative argued that allowing homeowners to create ADUs could provide rental income, making homeownership more feasible.

The discussion also touched on the varying costs associated with constructing ADUs. Representative Damon, drawing from his personal connections in the construction industry, suggested that costs could be significantly reduced through strategic design choices. He urged the committee to consider a broader range of cost estimates for ADUs, which could help potential homeowners better understand their options.

Jack Ruderman from New Hampshire Housing echoed the support for ADUs, describing them as a crucial part of the state's strategy to address housing shortages. He acknowledged the high costs of new construction but noted that existing structures could be adapted into ADUs at a lower expense. Ruderman advocated for legislative changes that would simplify the process of building ADUs, such as allowing detached units by right rather than requiring special exceptions.

Stephanie Schuyler from AARP reinforced the benefits of ADUs, particularly for low-income homeowners and family caregivers. She highlighted how ADUs can facilitate aging in place, allowing older adults to downsize while remaining close to family. Schuyler argued that ADUs not only provide affordable housing options but also strengthen community ties and support intergenerational living.

Ivy Van, a planner, suggested looking at successful models from other regions, such as Montpelier, Vermont, which has implemented a revolving loan fund for ADUs. She cautioned against structuring funding in a way that would prevent homeowners from benefiting financially from their investments in ADUs.

The committee's discussions underscored a consensus on the potential of ADUs to alleviate housing challenges in New Hampshire. As the meeting concluded, members expressed a commitment to exploring legislative measures that would facilitate the construction of ADUs and address the broader housing crisis. The anticipated next steps include drafting a comprehensive bill aimed at loosening restrictions on ADUs and establishing funding mechanisms to support their development.