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Lawmakers hear pitch for a Housing Investment Trust to expand workforce housing without state dollars
Summary
Rep. Gary Daniels and policy designers presented HB 633, a proposal to authorize a charitable 'housing investment trust' under RSA 293‑B to acquire, preserve and rotate workforce housing units using private capital and a revolving loan fund. Sponsors said the model would keep entry‑level homes affordable to successive households; lawmakers asked
House Bill 633 would add a statutory definition and enabling language for a new charitable vehicle called a Housing Investment Trust, intended to use private capital and a revolving loan fund to acquire, renovate and preserve workforce housing in New Hampshire without direct state appropriations.
Representative Gary Daniels introduced the concept as a privately funded effort to increase supply and preserve affordability. "The Housing Investment Trust," he said, "addresses this issue by utilizing private investments to acquire properties and provide families with flexible financing options." He said sponsors do not plan to use taxpayer dollars and that the structure is intended to be scalable.
Michael D’Alfano, who has developed the trust design, told the committee the trust would operate as a 501(c)(3) charity using a series‑trust structure under RSA 293‑B. Each subsidiary trust in the series would hold title or tenancy rights to a specific unit; investors and employers could target capital to particular properties, and a revolving loan fund would recycle repayments to finance additional acquisitions.
Lawmakers asked detailed questions about taxation, property‑tax treatment and risk of outside investors driving up prices. Commissioner questions and Department of Revenue analysis were cited during the hearing: D’Alfano said early conversations suggested municipal decisions about charitable property‑tax exemptions would be made on a town‑by‑town basis and that the trust's model anticipates paying ad‑valorem property taxes unless a municipality granted an exemption.
Representative Jeannie Perez and Representative Smith asked where capital would come from and whether out‑of‑state funds could buy and manage units; D’Alfano said the trust would solicit institutional and socially responsible investors but that the sponsor intends to preserve local control through a governor‑appointed board of directors and trustees.
Supporters said the model could provide employers and hospitals a tool to recruit workers and create a long‑term inventory of entry‑level housing. Several committee members asked for more detail on governance, tax treatment and property‑management costs before advancing the proposal.
Why it matters: HB 633 proposes a novel financing structure to expand and preserve workforce housing without adding to state expenditures. Its success depends on investor interest, municipal cooperation on property‑tax and permitting questions, and clear governance to prevent speculative buying.
Next steps: Committee members asked for follow‑up information on tax treatment, investor safeguards, and municipal coordination; no formal action was taken during the hearing.
