This bill seeks to empower municipalities in New Hampshire to tackle housing shortages by permitting them to enter into project-based credit enhancement agreements (CEAs) specifically for housing development. It introduces new legal definitions for CEAs and qualifying housing projects, which encompass senior housing, skilled care facilities, and workforce housing, while explicitly excluding certain residential conversions and luxury developments. The bill also amends existing laws to clarify the treatment of housing-related tax increment financing (TIF) by removing rebated portions of captured assessed value from equalized valuation calculations, thus ensuring municipalities are not penalized for utilizing TIF for housing initiatives.

Key provisions include the requirement for municipalities to classify rebates from CEAs as non-lapsing special revenues, enhancing budget transparency. It mandates property assessors to report on housing-related data and obtain necessary qualifications. The bill emphasizes aligning housing projects with local and regional housing needs assessments, streamlining the process for incentivizing housing development. Additionally, it establishes that CEAs are limited to qualifying housing projects, prohibits the conversion of existing habitable residential units, and allows for a rebate of up to 50% of the housing-based increment to developers. The bill also includes new reporting requirements and repeals the previous RSA 162-K:9-a related to credit enhancement agreements, with the new provisions set to take effect in stages starting April 1, 2027, and the repeal effective April 1, 2037.

Statutes affected:
Introduced: 21-J:9-a, 21-J:34, 162-K:2, 162-K:9, 162-K:10, 162-K:11, 162-K:9-a
HB1660 text: 21-J:9-a, 21-J:34, 162-K:2, 162-K:9, 162-K:10, 162-K:11