New Hampshire lets towns charge benefiting properties for development improvements

Cities and towns may form districts that charge benefiting properties to pay for public improvements serving new development. Eligible projects include roads, water systems, and utilities serving development. Facilities that do not directly and specially benefit properties in the district cannot receive this financing. The city or town must enter agreements with 60% of property owners to establish a district. Only properties that directly benefit may be charged, and each charge cannot exceed the property's benefit. District bonds must be repaid solely from these charges. Charges become claims against the property, enforced like property taxes. Owners must receive notice at least 14 days before the hearing. They may appeal how costs are divided within 30 days of notice, then appeal to superior court. These rules took effect September 13, 2026. Charges may be collected in yearly installments for up to 20 years. Districts end when all obligations are repaid, or earlier by a governing body vote if all costs are satisfied.

Municipalities must allow multifamily housing in covered commercial districts without requiring special permission for that use. The building height, distance, and frontage limits cover multifamily housing proposed in commercial districts existing, created, or expanded after July 1, 2026. Municipalities may review site plans and enforce applicable state fire, building, and other requirements. Other local requirements need express permission under this section. Existing buildings that violate zoning size or placement rules may be converted to multifamily housing or mixed use if changes to their outside dimensions do not worsen those violations. Owners forced to sue over improper denials or unauthorized requirements are entitled to reasonable lawyer fees directly caused by the dispute. The applicable housing section takes effect 60 days after passage. Whether section 2 or section 6 applies depends on whether HB 1010 becomes law.

Local legislative bodies may regulate parking for homes but cannot require garages or more than one parking space per home. The limits apply to cities, towns, and counties regulating parking in unincorporated towns or unorganized places. The parking provision took effect September 13, 2026.

The Department of Business and Economic Affairs must make sewer, water, and road upgrades for new housing eligible under its housing infrastructure municipal grant program. The program covers municipal sewer, water, and road upgrades serving new housing units. The law sets aside $1 from state treasury money not already committed to another purpose. It does not guarantee a grant to any municipality. These provisions took effect September 13, 2026. The $1 is for the fiscal year ending June 30, 2027.