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Lawmakers consider expanding 79‑E to convert more commercial/industrial space to housing
Summary
HB 11‑03 would broaden RSA 79‑E to let municipalities use community revitalization tax relief for commercial and industrial conversions, allow new construction in housing opportunity zones, and give towns flexibility on affordability metrics; supporters say it unlocks development, critics urge consumer protections and clearer covenants.
Representative Al Howland sketched HB 11‑03 as a targeted set of fixes to RSA 79‑E to encourage reuse of underutilized office, commercial and industrial structures for housing and to allow municipalities to negotiate locally appropriate affordability metrics for housing opportunity zones.
Sponsors said the tool is voluntary and locally adopted and can be calibrated to encourage workforce and affordable housing. Representative Mary Hacken Phillips framed the bill as a small, bipartisan, and actionable policy change that preserves local control and could mobilize new housing without state spending.
Some witnesses flagged consumer‑protection and local taxpayer concerns. Matt Mayberry (NH Home Builders Association) cautioned about resale and reassessment shocks when abatements expire, and urged clear covenants and requirements to avoid unexpected tax burdens for future owners. Chris Freeman proposed aligning affordability covenants and considering gradual phase‑outs of tax relief to reduce abrupt tax increases that could destabilize projects over time.
Why it matters: 79‑E is an existing local tool for revitalization; expanding it could unlock conversions and infill housing in downtowns and underused commercial districts but requires protections to ensure long‑term affordability and avoid windfall gains.
What’s next: Supporters asked the committee to consider small technical amendments and clarified the local adoption and public‑hearing process for 79‑E districts; municipalities must re‑adopt provisions to use new features.
