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Bill to Let Municipalities Use Special Assessments for Infrastructure Draws Support From Housing Advocates
Summary
HB1588 would let cities and towns create special assessment districts to finance development-related infrastructure (roads, water/sewer, sidewalks) and direct proceeds from certain state land sales into a state infrastructure fund; advocates said the tool could unlock housing where water and sewer are unavailable.
Representative Joe Alexander told the committee HB1588 creates a local-option financing tool enabling municipalities to levy assessments on properties that receive a direct, ascertainable benefit from infrastructure investments — roads, sidewalks, lighting, traffic devices, water mains, and sewer lines — so that the public infrastructure needed to support development can be funded upfront.
Alexander and supporters distinguished the proposal from tax-increment financing (TIF) by stressing that HB1588 assesses only benefited parcels to finance infrastructure that makes projects feasible rather than capturing future tax increments.
Nick Taylor of Housing Action New Hampshire supported the bill, noting that statewide analyses show only a small fraction of buildable land has water and sewer access and that municipalities need more tools to finance infrastructure that unlocks housing development. Taylor urged clarity as to how HB1588 would interact with an existing state statute authorizing petition-based assessment districts (chapter 52A), so municipalities can choose the appropriate mechanism.
The chair closed the hearing and referred HB1588 to the housing subcommittee for further review.
