The 2025 legislative session in New Hampshire was dominated by the state’s fiscal outlook and housing policy debates. In odd-numbered years, the state adopts its two-year operating and capital budgets. Lawmakers finalized those budgets on June 26.
For the first time in years, legislative budget writers faced declining revenues. The cuts they chose to make garnered significant headlines. Still, House and Senate negotiators reached an agreement in mid-June, adopting a budget with no tax increases. The final version was signed into law just days before the new fiscal year began on July 1.
Housing Policy
Housing advocates made notable progress in 2025. One proposal that failed would have allowed state law to override local zoning ordinances. The measure sparked debate between supporters who aimed to end NIMBY-driven housing opposition and opponents who prioritized local control.
Although that effort stalled, the legislature did create a study committee through HB 399, establishing a commission to review the enabling act that grants zoning and planning authority to local governments.
Several housing-related bills passed, including:
- HB 428 – State Building Code
Prohibits local legislative bodies from making new changes to the state building code. - HB 577 – Accessory Dwelling Units (ADUs)
Expands ADUs by right to include detached units, adds relevant definitions, and increases the maximum square footage. - HB 631 – Residential Building in Commercial Zones
Requires municipalities to allow multifamily residential development on commercially zoned land, with infrastructure stipulations and exemptions for adaptive reuse. - SB 188 – Third-Party Code Compliance
Authorizes licensed or certified third parties to certify documents and inspect buildings for compliance with applicable building and safety codes. - HB 134 – Building Code Updates
Updates the definition of the state building code to include more recent versions of international codes and amendments approved by the state building code review board.
Other Legislation
NHRLA monitored SB 26, which was signed into law and was a priority for the New Hampshire Home Builders Association. The bill addresses a recent opinion from the Attorney General’s Office requiring deposits for upgrades in new construction to be held in escrow.
NHRLA’s primary concern was ensuring material suppliers wouldn’t face risk. As passed, the law now allows the Department of Justice’s Consumer Protection and Antitrust Bureau to authorize the pre-closing use of a portion of an escrow deposit for:
- Customizations
- Upgrades
- Change orders
- Similar items
- Any combination of the above
Another bill of interest, HB 451, which would establish a Paint Product Stewardship Program, was re-referred in the Senate. This means the committee will take additional time to study the measure.
Looking Ahead
Lumber grading requirements remain a key concern—particularly the mandate for SPF grading when SPFs are structurally acceptable.
NHRLA members raised this issue during the association’s “Food Truck Lobby Day,” engaging legislators during their lunch break. Legislators responded positively to concerns about the burdens this requirement places on local yards, which must maintain two separate inventories. It also leads to the bypassing of New Hampshire-grown lumber in favor of Canadian lumber.
NHRLA intends to pursue reintroduction of corrective legislation in the 2026 session.