Committee hears testimony on HB 530 to double Affordable Housing Fund allocation, proposes Laconia sale appropriation

Representative Jessica LaMontagne, sponsor of HB 530, told the House Ways and Means Committee Tuesday that the bill would double the annual transfer to New Hampshire’s Affordable Housing Fund from $5,000,000 to $10,000,000 and would not raise taxes.

"HB 30 is a simple bill. It doubles the amount of money from the real estate transfer tax that goes into the affordable housing fund, increasing it from 5,000,000 to $10,000,000. It's not a tax increase," LaMontagne said, arguing the change would provide capital at lower interest rates to build the mix of units the state needs.

Why it matters: witnesses said the measure targets an acute shortage of affordable and accessible housing in New Hampshire and that public capital is a necessary lever to produce units that private developers currently build for higher-income renters. Testimony focused on supportive housing for adults with intellectual and developmental disabilities, older residents who cannot afford assisted living, and workforce housing.

LaMontagne opened with data on cost and income: she said the statewide median two-bedroom rent is "almost $1,800 a month," and that a household would need "over $68,000 a year" to afford it. She noted that although the median household income statewide is near $90,000, "a quarter of our population has a household income of less than $50,000," which leaves many households priced out.

The sponsor described two changes in the amendment she circulated. First, the amendment rewrites the funding source language so the funds deposited into the Affordable Housing Fund are drawn from revenue remaining after the required deposit to the Education Trust Fund, which she said is intended to keep the Education Trust Fund "harmless." Second, the amendment includes a prospective appropriation tied to proceeds from a potential sale of the former Laconia State School; LaMontagne said there is an offer of about $10,000,000 and suggested earmarking some or all of such proceeds to affordable and supportive housing projects.

Advocates described how the Affordable Housing Fund has been used and the populations it serves. Ben Sall, council and director of operations for Visions for Creative Housing Solutions, said his organization has three supported-housing sites—"2 of our sites were developed with assistance from the affordable housing fund"—and he described operating constraints because tenants rely largely on SSI and Medicaid. Tom DeRosa of Housing Action New Hampshire said the fund is a revolving loan instrument that has leveraged private investment and helped create thousands of rental homes.

Several parents and family-led nonprofit organizers testified about the urgent need for supportive housing for adults with intellectual and developmental disabilities. Laurie McIntosh, chair of Our Place NH, said the organization has an "interested list" of families and needs roughly $3,000,000 to renovate a purchased building into four apartments and supportive space; she described roughly 27 percent of people with developmental disabilities living with caregivers over age 60 in federal data she cited.

New Hampshire Housing, which administers the Affordable Housing Fund, provided context on the agency’s role. Jack Reuterman, legislative affairs adviser for New Hampshire Housing, said the agency operates a range of financing programs and that the Affordable Housing Fund has been used to create housing for a range of incomes. "We believe that an increase in funding would be an important step toward increasing the supply of housing in New Hampshire," he said.

Opposing or skeptical questions during the hearing focused on tradeoffs. Representative Elmi asked whether increasing the fund’s deposit would divert money from the general fund and other priorities; LaMontagne acknowledged the money must come from somewhere and framed the bill as a decision about priorities. Representative Opel sought to confirm that the amendment language would leave the Education Trust Fund deposits intact; LaMontagne said that was her intent.

What was not decided: the committee held a public hearing; no committee vote or final action on HB 530 was recorded in the transcript. LaMontagne said she drafted and circulated an amendment and invited questions; several witnesses said they supported both the bill and the amendment and identified the Laconia State School proceeds as a possible one-time source to accelerate projects.

Looking ahead: advocates asked the committee to support the bill or carry its provisions into the budget process, and several told lawmakers they also supported a similar Senate measure (SB 81) that would go further by adding a one-time $25,000,000 appropriation.

Ending note: The hearing drew numerous family members, nonprofit leaders, and housing advocates who emphasized both the statewide shortage of affordable units and the particular shortage of accessible and supportive housing for people with disabilities and aging caregivers.