From the Field: New Hampshire Legislature Passes Budget with New Investments in Affordable Housing

Following a governor’s veto in the spring and a three-month continuing resolution, a final budget agreement was passed by the New Hampshire legislature and signed by Governor Chris Sununu (R) on September 25. Affordable housing advocates in New Hampshire are celebrating several wins in their biennial budget, including significant increases in funding for the state housing trust fund and homeless services, the establishment of a new housing appeals board, the launch of a new supportive housing services Medicaid benefit, and a new lead-remediation fund. These affordable housing victories are the result of a coordinated campaign effort led by Housing Action NH, an NLIHC state partner.

New Hampshire’s Affordable Housing Fund, the state housing trust fund, was established in 1988. Appropriations for the trust fund over the years had been generally small and intermittent, however. The new budget deal indicates a change in course, providing a $5 million per-year real estate transfer tax carve-out and a general $5 million appropriation, totaling $10 million over the next two years and a new dedicated funding source. Support for the new investments was bipartisan, with the proposal introduced by State Senator Jeb Bradley (R) with the strong backing of the Senate’s Democratic majority.

Homeless services in the Granite State will also get a boost, the first major increase in state funding for homeless services in the last 20 years. The new funding includes a new eviction-prevention fund, the expansion of case management, a rapid re-housing program and new resources for outreach to homeless youth. Homeless service providers are also pleased the budget directs the commissioner of the New Hampshire Department of Health and Human Services to create a new supportive housing services Medicaid benefit through a state plan amendment or federal waiver process.

“Our affordable housing advocates were heard loudly and clearly,” said Housing Action NH Director Elissa Margolin. “The newest data revealing a vacancy rate below 1%, climbing rents and workforce shortages got the attention of policy makers, and we are pleased that they responded with real solutions.” 

The final agreement also included the creation of a new review alternative for housing-related appeals. The Housing Appeals Board, a new appeals alternative to the traditional Superior Court, promises to cut down significantly on lengthy delays and legal expenses. The establishment of the new appeals board is considered a major win for nonprofit affordable housing developers who, until now, have often chosen to forego the expensive court appeals process.