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Bill to allow multifamily housing in commercial zones draws mixed testimony

2947049 · April 10, 2025
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Summary

House Bill 631 would permit multifamily residential units within commercially zoned lots; proponents said it would expand housing supply and reuse vacant commercial buildings, while municipal groups warned about definitional ambiguity and unfunded infrastructure costs.

Representative Alessandra Marie (Hillsborough District 20) opened the hearing on House Bill 631 by arguing the bill would "allow for the creation of multifamily mixed residential units within any commercial lot" and that zoning reform is needed to address a statewide housing shortage. She cited federal data and state rental surveys showing rising rents and homelessness increases in recent years.

Proponents included Arthur Sullivan of Grace Home Properties, who said his firm has converted mill and office buildings into apartments and urged passage to facilitate conversions; Nick Taylor of Housing Action New Hampshire said polling showed 88% support for allowing more housing near businesses and called the bill a "relatively modest" change that would expand housing where infrastructure already exists. The Business and Industry Association also testified in favor, arguing many commercial spaces are unlikely to return to their prior use and conversions would help create housing.

Opponents included Brody Deshaies of the New Hampshire Municipal Association, who said the bill could create widespread disputes over definitions of "commercially zoned land," raised questions about which body would determine "adequate infrastructure," and warned of potential unfunded infrastructure mandates for roads, water and sewer. Representative Joe Alexander, who said the House Housing Committee made targeted amendments, urged a balanced approach and noted the bill allows municipalities to require ground-floor retail in some cases.

The committee took testimony from multiple stakeholders and closed the hearing on HB 631; no committee vote or referral was recorded in the transcript.