Senate adopts measure limiting municipal lot-size rules in push to increase housing supply

The New Hampshire Senate voted 13-10 to approve Senate Bill 84 (FN) as amended, a bill that restricts how municipalities may set minimum lot sizes for new housing in areas served by public water and/or sewer and requires a majority of residentially zoned land to allow lots of 2 acres or smaller under specified conditions.

Senator Murphy, reporting the Commerce Committee recommendation and acting as a floor sponsor, described the underlying measure as prohibiting towns from requiring more than a half-acre per lot in areas served by both public water and sewer and more than an acre per lot in areas served by public water only. The amended bill requires that a majority of a town’s residentially zoned land allow lot sizes of 2 acres or less (the floor amendment earlier reduced a prior 1.5-acre proposal to 2 acres during debate). A committee amendment also pushed the bill’s effective date to 2026 to give towns time to adjust ordinances.

Supporters called the bill a tool to increase housing supply and lower land and site-development costs. Senator Murphy argued large minimum lot sizes were a primary reason starter homes are being priced out of the market, saying smaller lots make development of modest-sized homes more economically feasible and that "the tax burden is spread among fewer homes" when development is stifled.

Opponents warned the measure infringes on local control and could shift costs to municipalities. Senator Ricciardi said the bill was a "one-size-fits-all" mandate that ignores local topography, septic and well constraints, and town master plans, and warned it could raise municipal costs and property taxes. Several senators urged caution over unfunded costs to towns for ordinance changes, infrastructure, and potential lawsuits over conflicts with existing local plans. Questions on whether the bill would compel towns to change existing lots were answered by sponsors: the bill, as amended, was framed to apply to future lot creation and to avoid creating nonconforming lots.

During floor action, the Senate adopted a floor amendment (1151s) that moved the majority threshold to 2 acres and preserved local wetland/septic regulatory authority; an attempted amendment (1067) to convert the change into a town-by-town referendum failed. After extended debate and a roll-call, Senate Bill 84 FN as amended passed 13 to 10 and was ordered to third reading.

Supporters emphasized the bill’s supporters included housing advocates and some municipal planners; opponents included members who cited local voters’ preference for local control and concerns about costs and infrastructure. The bill’s sponsors and floor managers pointed to data cited on the floor that many towns would already be in compliance at the 2-acre threshold and to a need for more buildable lots to allow smaller, starter homes to be produced.

The Senate’s recorded roll call showed the bill passed 13-10 and the measure was ordered to third reading.