The "Fair Chance for Everyone Housing Development Act" seeks to tackle New Hampshire's housing crisis by creating a robust framework that includes financing, tax credits, and municipal incentives to foster affordable housing and infrastructure development. The bill establishes a multi-stakeholder commission to explore the state's borrowing capacity for below-market financing and recommends a dedicated investment fund. It also expands the community development finance authority's investment tax credit program for housing projects, with phased increases from FY 2026 to FY 2033. To fund these tax credits, a new luxury second home state assessment will be introduced, with proceeds directed towards housing-related initiatives. Additionally, the bill allocates $15 million to the state workforce innovation fund for training in building trades and provides municipalities with various incentives to boost housing production.

Moreover, the bill creates two new nonlapsing funds within the state treasury: the Municipal Demolition Grant Program Fund and the Regional Planning Commission Housing Assessment Support Fund, both overseen by the Department of Business and Economic Affairs. It also introduces a Non-Homestead Property Assessment on residential properties valued over $1 million that are not primary residences, with an assessment rate of $2.50 per $500 of assessed value above the threshold, adjusted annually for inflation starting January 1, 2028. The bill anticipates generating approximately $31 million annually from second-home ownership, necessitating significant upgrades to the Department of Revenue Administration's systems and the hiring of new staff. While the bill aims to provide substantial funding for housing initiatives, concerns about fiscal impacts and municipal costs have been raised, leaving the overall financial implications uncertain.

Statutes affected:
Introduced: 6:12
HB1786 text: 6:12