This story was originally produced by the New Hampshire Bulletin, an independent local newsroom that allows NHPR and other outlets to republish its reporting.
A year after making housing a central plank of her campaign for governor, Gov. Kelly Ayotte signed 10 bills last week attempting to put limits on local zoning restrictions in order to encourage more housing construction.
The bills, many bipartisan, have been cheered on by those arguing that developers have been hampered by overly restrictive city and town zoning codes, keeping the state’s housing supply low.
“It’s hot housing summer,” said Rep. Joe Alexander, a Goffstown Republican and the chairman of the House Housing Committee, in an interview. “We have had enormous success getting some critical pieces of housing legislation through.”
But some advocates have said lawmakers could have done more to address housing this year, noting a lack of new state funding toward housing reforms and the defeat of some bills they say could have helped.
Here’s which bills Ayotte signed into law — and which ones did not make it out of the Legislature.
A major expansion of accessory dwelling units
One of the most significant bills signed by Ayotte last week could allow homeowners in New Hampshire to help ease the housing shortage in their own backyards.
House Bill 577 allows property owners in New Hampshire to construct detached accessory dwelling units, building on the 2016 law that first permitted attached versions of those units by right.
That earlier law provided landowners the right to construct those units as long as they adjoined an existing home and included an interior door between the principal dwelling unit and the attached unit.
The 2025 law has looser restrictions. It requires towns and cities to permit either an attached unit or a detached unit, provided the construction meets existing zoning requirements. And it does not require an interior door.
Alexander says he has heard from constituents and others who have been waiting on the law in order to move ahead on construction of detached accessory dwelling units.
“ADUs are hopefully going to start building today,” he said.
Residential and commercial housing zones move forward
Ayotte also signed a bill last week that could transform some downtown areas.
House Bill 631 requires cities and towns to allow multi-family residential development in commercial zones — with some restrictions — allowing for the possibility of “mixed-use” housing developments.
Under the new law, local planning and zoning committees must allow the developments as long as there are adequate roads, water services, and sewage connection for residents. The law also provides exceptions for properties in commercial zones but unsuited for residential use, such as situations where there are air, noise, odor, and transportation problems.
“We’re going to have retail on the bottom floor, and then the property owner is going to be able to revitalize those old mill buildings that haven’t been in use for commercial and allow them to be residential,” Alexander said. “So that’s going to save our New Hampshire downtowns.”
Matt Mayberry, chief executive officer of the New Hampshire Homebuilders Association, cheered the ADU bill, predicting an initial surge in ADU developments, followed by an eventual levelling off.
“Like all things, when you first turn on the faucet, you get a big rush of water,” he said in an interview. “Then it gets kind of regulated.”
But Mayberry has a more mixed opinion of the mixed-use development bill. He worries that some developers might use it to add residential housing to industrial parks, and push out potential businesses. On the other hand, he is concerned that municipalities could use the “air, noise, odor, or transportation” exemptions to veto some desirable developments. Those exemptions should have measurable standards, Mayberry said.
“I want to see if builders are going to abuse it, or if towns are going to abuse it,” he said, of the new law.
Permitting process sped up; other reforms initiated
Included in the budget signed in June is a longtime priority for Ayotte: legislation to speed up the state’s permitting process for new housing construction. House Bill 2, the budget trailer bill, requires reviews by the Department of Transportation and Department of Environmental Services to be completed within 60 days.
But Ayotte also signed a number of bills last week making smaller changes to what local authorities are allowed to do.
House Bill 457 prohibits cities or towns from creating zoning ordinances that restrict the number of residents to one person per unit; under that new law, each municipality must allow at least two.
Senate Bill 188 allows homeowners to use third-party inspectors to conduct inspections of housing developments, which supporters say should increase the pace for developers.
Senate Bill 282 allows buildings up to four stories tall to feature just one stairwell.
Senate Bill 281 requires municipalities to allow construction of homes on Class VI roads — provided the landowner signs a document acknowledging that the city is not going to maintain those roads, while House Bill 296 would provide a new pathway for land use boards to approve construction on private roads.
And Senate Bill 284 stops cities and towns from requiring any more than one parking space per unit for residential construction.
“These bills are a win for New Hampshire families and businesses,” said New Hampshire Housing Action Director Nick Taylor in a statement. “They make it easier for Granite Staters to create attainable homes on their own property, revitalize aging strip malls and office buildings, cut through burdensome red tape, and streamline the approval process.”
Other zoning overhauls fall
Not all proposals to reduce zoning restrictions made it through this year.
The House tabled Senate Bill 170, which would have required municipalities to allow certain sewage line construction. It tabled Senate Bill 174, which included restrictions on how municipalities can regulate the number of bedrooms in a proposed unit or development. It also retained House Bill 459, which would limit the minimum number of acres a municipality could require for a property that did not have sewer infrastructure.
Beyond zoning, the House also killed House Bill 623, which would bar corporations from buying houses for three months after a house is listed for sale. Advocates had argued that would improve the chances for people to buy homes, but opponents said it would stifle the free market.
A rejection of some affordable funding proposals
While praising the regulatory reforms, housing advocates have criticized the reduction of state funding for affordable housing this year.
The Legislature rejected proposals to double the amount of money sent to the state’s affordable housing fund. Currently, $5 million goes from real estate transfer tax revenues to the fund; lawmakers had pushed for $10 million.
And the two-year budget did not add additional funding for the Housing Champions Program, which attempts to incentivize towns to overhaul their zoning codes to be more friendly to development through a mix of grants. Lawmakers also retained House Bill 572 in committee; that bill would provide a “partners in housing” program to devote more money to help further assist cities and towns in building workforce housing.
In a press release Thursday, a spokesperson for New Hampshire Housing Action said the 2025 legislative session “ended with progress on regulatory reform but a disappointing lack of investment to shore up financial tools and programs to support affordable housing.”
But Alexander argued the zoning reforms meant the money would not be necessary to stimulate development.
“I think that these reforms are so significant that we’re not going to need to be funding these programs for a long time,” Alexander said.
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