Gov. Chris Sununu speaks at a USDA listening session in Wolfeboro in 2017. Photo by Lance Cheung | U.S. Department of Agriculture
Among the policy proposals in Gov. Chris Sununu’s 2022 State of the State speech was one that may give some housing experts and real estate industry players hope for the state’s ability to grow its housing stock in key areas hit hardest by a shortage of affordable homes.
The governor proposed in the Feb. 17 speech to put $100 million of the state’s federal COVID-19 relief money into a “housing incentive fund,” split up into four pots: funding multifamily projects, dollars to help towns offset infrastructure costs associated with development, cash to demolish unusable buildings and money to pay for planning studies in communities that want to accept more development.
“These investments are critical to ensuring New Hampshire is the number one destination in New England. This housing is for workers and families who work in our communities, go to our schools and contribute to our economy,” he said according to a transcript of his prepared remarks. “The data is clear: housing creates regional stability for our families and businesses.”
The funding for multifamily projects would total $60 million. Instead of funding one project, the money would help developers close gaps in their construction financing, but would not be usable to fund pre-development costs.
The money for towns would total $30 million and would be distributed on a per-unit basis as a “bonus” if a community can get a development through the permitting process, including building permits, in six months. The money could be used to help the municipality fund infrastructure and schools or even purchase housing subsidies.
The $5 million demolition grants would be awarded to municipalities with “old or unusable” buildings sitting on otherwise developable parcels.
The $5 million in planning grants would be distributed via a competitive program to help towns and cities update their zoning laws to set up areas for more housing development, including mixed-use zones.
