Legislative Update April 7, 2026

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New municipal tool 
to encourage housing 

House Bill 1588 would allow cities and towns to create special assessment districts to help finance public infrastructure needed to support housing development. These districts could be used for improvements such as roads, sidewalks, water mains, and utility extensions for projects already in the approval process.

Creating a district would require a two-thirds vote of the municipality’s governing body. The costs would then be assessed against the properties that directly benefit from the improvements.

The governing body would determine how those assessments are apportioned among the affected properties. That could be based on factors such as frontage, lot size, number of units, assessed value, or another reasonable metric. Municipalities could issue bonds for up to 20 years to pay for the improvements upfront, with those bonds repaid through the assessments levied under the new law.

These districts would differ from Tax Increment Financing (TIF) districts. TIF districts rely on the future increase in tax revenue generated by a development to fund improvements. By contrast, this special assessment district would front-load the financing through a bond, with the developer ultimately paying the cost through the assessments.

The bill has passed the House and was heard last week by the Senate Commerce Committee.

Agitated no more

Senate Bill 594 would eliminate the use of agitators in situations where temporary docks have been removed from bodies of water. Dock deicers, sometimes called “agitators,” agitate or heat water during the winter to prevent ice from accumulating around dock piers and damaging structures as the ice shifts.

While these devices may be necessary for permanent docks, supporters of the bill argue they should not remain in use once a seasonal dock has been removed. They contend that unused agitators can create dangerously thin ice, disturb sediment, harm lake ecology, and increase the risk of invasive species and cyanobacteria growth by allowing sunlight to penetrate areas that would otherwise remain ice-covered.

The bill would prohibit the use of dock deicers except when necessary to protect permitted permanent structures.

The measure has passed the Senate and received unanimous support from the House Resources and Development Committee. A final House vote is scheduled for later this week.

Senate is adverse to eliminating adverse possession

House Bill 1135 would prohibit the acquisition of rights in private roads, ways, driveways, or trails through adverse possession.

Under current law, adverse possession allows a person to gain legal title to land if it is occupied for a sufficient period of time under certain conditions. A prescriptive easement, by contrast, does not transfer ownership but instead grants a right to use another person’s land, typically for access.

The House of Representatives easily passed the bill last month, but it encountered resistance in the Senate. Concerns centered on the distinction between prescriptive easements and adverse possession, and on the bill’s effect of eliminating both.

The Senate Election Law and Municipal Affairs Committee voted unanimously to recommend killing the bill. The full Senate is expected to take final action later this week.

Quote of the Week

“(It) is clear that high costs and limited supply are not short-term challenges but instead reflect deeper structural issues in New Hampshire’s housing market. Without sustained action to increase supply and improve affordability, many residents may continue to face limited options for stable, affordable housing.”

—Jessica Williams, senior policy analyst at the New Hampshire Fiscal Policy Institute. (“High prices, limited supply continue to strain NH housing,” Valley News April 5, 2026)

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For more information, contact New Hampshire Realtors CEO Bob Quinn: bob@nhar.com.

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