On Feb. 19, I saw the New Hampshire House of Representatives do something I never thought I would see happen. Due to a clerical error, a bill I sponsored — HB 1786 — to address the housing crisis did not receive a public hearing in the House Committee on Housing. Rather than correct that error and refer the bill directly to the Finance Committee where it could have received that hearing, all 186 Republicans present in the House voted to deny Granite Staters that opportunity; 158 Democrats voted to allow the bill to have its hearing.
Fifty-two percent of Granite Staters who were polled recently said that the cost and availability of housing was the most important issue facing New Hampshire. Housing related costs are a key driver of the higher basic living expenses so many of us are facing. They in turn have been driven by the relatively low inventory and availability of housing unit.
HB 1786 is the only bill introduced this session that provides real and tangible support to the efforts already underway to address this issue. It provides significant and ongoing funding that was not included in the budget submitted by Governor Ayotte and voted into law last June.
HB 1786 increases the authority of the Community Development Finance Authority to offer housing related investment tax credits by an additional $10 million over the next four biennium. These tax credits help to reduce the cost of financing new housing development projects.
HB 1786 will fully fund the Housing Champions Program, which had bi-partisan support when it was established in 2023. Since August 2024 when the program went into effect, 28 towns — including Hampton — have met the criteria of “Housing Champions,” making them all eligible to apply for grants to help fund infrastructure and develop housing solutions that work in their local community.
When the program was established, the legislature provided $5 million in grant funding that went to eight towns and cities, including Concord, Dover, Manchester and Nashua that lead directly to the creation of 373 new housing units and critical infrastructure.
But because Governor Ayotte included no additional funding for the Housing Champions Program in last year’s budget, the 20 other towns who applied to receive the Housing Champions Programs designation have been left out in the cold. HB 1786 will honor the commitment made to these towns. It will provide funding for $5 million in additional Housing Champions Program grants this year and $10 million for each year thereafter.
HB 1786 will also provide annual funding of $2.5 million for the Partners in Housing Program which was established last year but also not funded. Those funds will be utilized to construct starter homes, duplexes and small apartment buildings on municipally-owned land.
Along with funding to several other housing programs, HB 1786 will provide a total of $31 million in additional state funding to those with a proven track record of increasing housing units.
Revenue to support this funding will come from a Non-Homestead Property Assessment on luxury second homes with an assessed value above $1 million not used as a primary residence for at least 183 days a year. There will be no additional assessment on any property with an assessed value of $1 million or less.
The Department of Revenue Administration estimates this additional assessment would apply to nearly 6,100 homes and would generate approximately $31 million in additional revenue for the state each year, which is enough to cover the additional program expenditures authorized by HB 1786. That is the equivalent of an additional annual payment of $5,100 by each of the affected homeowners.
Many of the individuals who would pay this assessment are from out-of-state and since they are not here all year long, they do not contribute to our local and state economies as much as full-time residents do. This assessment makes up for some of that. It also has the support of a broad segment of the population. Sixty-seven percent of those recently polled said they would support such a fee, and only 23% said they would be opposed.
Addressing our housing challenges is going to take a comprehensive, concerted and onoing effort. With that in mind, HB 1786 also includes establishing a commission to study how to fully leverage the borrowing power of the state to provide below-market financing for housing development and related infrastructure and providing additional funding to ensure that we have the workforce needed to build the new housing units we will require.
Granite Staters cannot afford to wait another two or three election cycles before we do something. HB 1786 provides us with a way to provide much needed funding in a fiscally responsible manner to take on our housing challenges head on.
Why then, were Republicans in the House unwilling to give HB 1786 the one thing that every other bill introduced this year has received: a fair and open public hearing? Hopefully Republicans in the Senate will be more receptive to discussing the merits of those concrete ideas so that we can make real progress addressing the housing challenges individuals and families across New Hampshire are facing.
Chris Muns is one of Hampton’s five NH State Representatives. He is currently serving his third term, having previously served between 2012 and 2014 and 2022 and 2024.