HB1349

TESTIMONY OF REP. DAVID MEUSE, PRIME SPONSOR One of the hardest things to do as a legislator also happens to be the hardest thing to do in a marriage—to admit you were wrong. When HB 631 came to the floor last year, I supported it. After all, there’s no debating the fact that this state is in a housing crisis and the idea of making it easier to build more housing in commercial areas closer to where people work was enormously appealing. But something I’ve learned since then is that HB 631 doesn’t just present opportunities. For many smaller New Hampshire communities, it also presents enormous challenges as well as a financial burden. That’s because it turns out that HB 631, which will take effect July 1, 2026 and allows multi-family residential development on commercially zoned land, is essentially an unfunded mandate. Without a penny of financial assistance from the state, it will force towns to bear the financial burden of adjusting infrastructure and services. Newington, which is one of the communities in my district, has about 850 residents and many of them are extremely concerned about the fiscal impact of HB631 once it takes effect. While the possibility exists that the bill could expand the tax base due to increased density, there is also a very strong possibility that any expansion to the tax base won’t necessarily translate to a proportional increase in revenue, potentially leading to financial imbalances. In Newington’s case, there is a concern that nearby high-density residential development will make commercial properties less attractive and potentially reduce revenues raised via commercial property taxes. It also throws a wrench into the work town officials did developing the 2020-2030 Newington Master Plan to guide commercial, industrial, and residential growth. Among other things, the Master Plan addresses high land values and limited availability by allowing Accessory Dwelling Units (ADUs) in residential zones. To be clear, the bill before you today is not a repeal of HB 631. What HB 1349 will do is create a sensible exemption for smaller New Hampshire communities that are less likely to have the aging mill buildings many supporters of the original legislation were envisioning when, like me, they pressed the green button to pass it. What an exemption would do for smaller communities with low population density is preserve local control in towns less equipped from a staffing or a financial standpoint to comply with an unfunded state mandate that fails to take into account the work that many smaller communities are already doing to build more housing. Mr. Paul Deschaine who is the Newington Town Attorney, will be testifying after me and can provide more information on some of the unintended consequences of keeping the law that will take effect on July 1st in place. Rep. David Meuse, Rockingham 37 (Newington, Portsmouth, New Castle)