More New Hampshire Communities Are Becoming Housing-Friendly. Could Yours Be Next?

The information contained in this article is not intended as legal advice and may no longer be accurate due to changes in the law. Consult NHMA's legal services or your municipal attorney.

New Hampshire communities adopted house-friendly zoning changes in record numbers at their annual town meetings this year, according to a review by the Department of Business and Economic Affairs (BEA). The analysis is part of the Municipal Land Use Regulation Survey conducted by BEA’s Office of Planning and Development in accordance with RSA 675:9. Nearly 60 communities of all sizes, from the Monadnock Region to the North Country, received grants through the InvestNH Housing Opportunity Planning (HOP) program. This enabled them to reduce regulatory barriers to housing. This is encouraging.

Housing-Friendly Zoning and Land Use Regulations Changes Come in All Shapes and Sizes

Consistent with New Hampshire’s tradition of local control, housing-friendly regulatory changes vary among communities, taking into consideration each municipality’s unique fabric and specific needs, as well as community engagement. As more communities receive HOP grants, they will reap the benefits of taking steps to mitigate their housing challenges.

Although the way HOP funding varies, resulting zoning and land-use regulatory changes fall into five areas:

1. ADUs: Allowing detached ADUs and/or two ADUs on a single lot; increasing maximum square footage of ADUs;
2. Mixed-Use Zoning: Creation of new mixed-use districts which allow diverse housing types, additional density for areas on water and sewer, provide density bonuses and other incentives for workforce housing;
3. Parking: Reduction in number of required off-street parking spaces for ADUs, flexible parking requirements that are market/demand driven;
4. Lot Size: Reduction in minimum lot sizes;
5. Innovative housing types and tools: missing-middle housing, tiny houses, cluster housing, cottage courts, age-friendly housing, pattern zones, etc.

Of note, the Innovative Land Use Control Statute, RSA 674:21 allows municipalities to enact innovative and flexible planning and zoning techniques to encourage housing development. Municipalities can apply for a HOP grant; applications are due by Sept. 30.

Generally, municipalities may use these funds to hire consultants to:

• Update the housing, land use, and vision sections of the master plan, the implementation section, and community facilities or other relevant sections as they pertain to water and sewer for housing development.
• Conduct a housing needs assessment or analysis as part of a larger project.
• Audit a municipality’s land use regulations and make recommendations to promote housing development.
• Create new regulations or revise existing regulations with the stated primary goal of increasing the supply of housing, especially affordable and workforce housing. For HOP grant program details and to apply, visit www.NHHOPGrants.org.

Sample of Housing-Friendly Zoning Changes

The following is a sample of housing-friendly zoning changes municipalities adopted in 2024, the result of countless hours of community engagement:

• Conway, Greenfield, New Ipswich, and Wilmot now allow two ADUs – generally the first allowed by right, second by special exception;
• Allenstown, Bethlehem, Bow, Boscawen, Colebrook, Dublin, Gilsum, Lyndeborough, Northwood, and Troy now allow detached ADUs;
• Bethlehem, Colebrook, Sugar Hill, and Waterville Valley now only require one parking space per ADU;
• Canterbury adopted a new cluster neighborhood ordinance to allow farmhouse-style developments, which fit into the existing residential character, at higher densities than would otherwise be allowed;
• Chester adopted a Fair Market Rental/Workforce Housing Ordinance
• Conway established the first 79-E Housing Opportunity Zone in the state;
• Exeter expanded its Mixed-Use Neighborhood District (MUND) outside of downtown to include the C2 Highway Commercial zoning district, and provided incentives including density bonus to create a mix of housing units (including 10 percent affordable units);
• Farmington increased the maximum density for duplexes and multi-family housing and added density bonuses for properties connected to water and sewer, while also allowing duplexes on rear lots in all residential districts except the Agricultural Residential District;
• Jaffrey now allows multi-family in the General Business and General Business A District where water and sewer is available and added a density bonus for workforce housing and senior housing
• Keene adopted a Cottage Court Overlay District Conditional Use Permit
• Portsmouth rezoned 39 properties from office/research to gateway and now allows higher densities of housing than previously allowed;
• Sandwich now allows two-family dwellings in all residential districts;
• Waterville Valley created flexible parking requirements, which allow tailoring of parking requirements to each development proposal to meet, but not exceed, demand.

Additional Housing Related Tools and Resources For Communities

In addition to facilitating grant programs and partnering with organizations, like New Hampshire Housing on HOP, BEA provides resources to communities to develop additional tools to address their housing issues,
including the New Hampshire Housing Toolbox, which contains 20 planning and zoning strategies to increase housing production. To access the Toolbox visit www.nhhousingtoolbox.org.

Later this year, BEA will launch the New Hampshire Housing Champions Designation and Grant Program, which will enable municipal Housing Champion designees to access two grant programs focused on incentivizing workforce housing units and infrastructure investment, as well as a state-funded InvestNH program. Information will soon be available on www.nheconomy.com