Senate Commerce hearing advances proposal to boost Affordable Housing Fund with ongoing transfer-tax allocation and $25M one-time appropriation

Senate Commerce opened a hearing on Senate Bill 81, a measure to increase the portion of the real estate transfer tax dedicated to New Hampshire’s Affordable Housing Fund and to authorize a one-time $25 million appropriation to the fund.

The bill’s sponsor, Senator Innis, chair of the Senate Commerce Committee, told the committee the proposal would “increase the amount of funds that are coming out of the real estate transfer tax into the affordable housing fund” from $5,000,000 annually to $10,000,000 and would provide a $25,000,000 one-time appropriation. He framed the bill as a response to a persistent shortage of housing and rising prices across the state.

The bill drew broad support from business and housing stakeholders. Nach Grace of the Business and Industry Association said housing is “the number 1 constraint on business expansion” and supported the bill as a targeted public investment. Chris Norwood, vice chair of the New Hampshire Association of Realtors Public Policy Committee, testified for the association and noted he also serves on the board of New Hampshire Housing, the entity that administers the Affordable Housing Fund. Rob Dappas, executive director of New Hampshire Housing, described the fund’s role as a revolving tool that leverages federal tax credits and private investment to produce affordable rental units and supportive housing. Dappas said state dollars often leverage four or five times more federal and private investment and provided a handout listing eligible projects awaiting financing commitments.

Nick Taylor, executive director of Housing Action New Hampshire, and Rebecca Skye, executive director of the New Hampshire State Commission on Aging, also spoke in support. Taylor cited the state’s very low rental vacancy rate and high rents; Skye highlighted data showing older adults on fixed incomes face higher poverty and housing cost burdens, and emphasized accessibility needs for aging residents.

Witnesses stressed two recurring themes: (1) the Affordable Housing Fund has a record of leveraging private and federal resources and financing long-term affordability restrictions, and (2) the proposed increase would give more predictable, ongoing funding that developers said they can factor into long-term planning. Dappas noted state-funded Affordable Housing Fund investments often carry affordability restrictions of 20–30 years or longer and are used to pair state dollars with low-income housing tax credits and tax-exempt bonds.

No committee vote on the bill was recorded during the hearing. The committee later referred a set of housing bills to the Commerce subcommittee on housing (see actions).