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Bill would expand financing tools and local options to boost flood resilience across coastal and inland communities
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Summary
Representative Chris Munns said HB 595 would give towns and homeowners new financing and tax tools — including R‑PACE, municipal credits/exemptions and a resilience fund — to encourage property‑level flood mitigation.
CONCORD — Representative Chris Munns opened testimony on House Bill 595 by saying climate‑driven increases in heavy precipitation and sea‑level rise are raising repair costs and long‑term risk for coastal and inland communities. He described a four‑part approach that would expand financing and local incentives for household and municipal flood resiliency work.
Munns, who represents Hampton, said the bill would add “flood resiliency improvements” to qualifying projects eligible for the commercial Property Assessed Clean Energy program (C‑PACE) and create a residential PACE (R‑PACE) option to extend low‑cost, long‑term financing for resiliency and energy projects to homeowners. The bill also would authorize municipalities to offer a property‑tax exemption equal to the value of qualifying resiliency improvements or an annual tax credit of $100–$1,000 for up to five years; create a municipal flood resilience fee and a non‑lapsing resilience investment fund to seed grants or low‑interest loans; and fund a statewide economic study by the Department of Business and Economic Affairs (BEA) on the costs of flood risk and mitigation options.
Supporters argued the bill is an enabling measure that uses municipal tools and private capital to make it easier for homeowners and small businesses to invest in flood mitigation. Marcus Landers, a private contractor and resilience advocate, told the committee that insurance markets already subsidize flood risk and that a program to reduce exposure and mobilize private capital “can correct broken incentives” and avert broader economic decline in vulnerable regions.
The Insurance Department told the committee it is aware of affordability and accessibility problems in coastal communities and other flood‑prone areas, and that resilience investments could improve homeowners’ underwriting profiles as the industry tightens coverage. Commissioner D.J. Bettencourt said homeowners should be aware that “you do not have flood coverage unless you’ve purchased a separate flood policy” and that mitigation may help secure renewals and lower premiums in a hardening market.
Committee members raised consumer‑protection concerns about R‑PACE, noting other states have required disclosures, ability‑to‑pay tests and sale confirmations to avoid deceptive lending. Munns said he and stakeholders are tracking recent legislation in the Senate (SB 4) and elsewhere to harmonize consumer protections and the PACE administrative framework with the Business Finance Authority if necessary.
Why it matters: HB 595 attempts to give municipalities and homeowners more financing and tax tools to invest in flood resilience, combining local incentives, a dedicated municipal fee/fund and state study to guide longer‑term policy.
Next steps: Sponsors and municipal and business stakeholders flagged drafting and consumer‑protection refinements to R‑PACE language and asked the committee to consider aligning HB 595 with related bills (SB 4). BEA and the Departments of Revenue and Business & Economic Affairs provided technical input and suggested narrower scope language for the statewide study.
