By ZACH LAIRD, InDepthNH.org
CONCORD — The House Committee on Housing held a public hearing Tuesday for House Bill 1726, which would direct state agencies to identify and dispose of surplus property for the development of affordable housing units.
The bill’s sponsor, Rep. Chris Muns, D-Hampton, said that since the acquisition of land is one of the larger expenses a developer incurs, the bill aims to reduce the cost of projects by identifying unused or underutilized state-owned property that could be suitable for affordable housing development.
“It directs state agencies to identify any such property as part of the development of their biennial state budget, and authorizes the state to offer such property to qualified developers through a competitive bidding process at below-market rates,” Muns said.
The bill also would provide an incentive for municipalities that collaborate with state agencies to identify and rezone state-owned properties suitable for housing development in their town or city. Muns said any municipality that does so would have grants it submits under the Housing Champions Program be given a higher priority than grant applications submitted by other towns.
“I am not under the illusion that this bill will magically identify acres and acres of land in highly desirable locations upon which to build all the new housing units we need … but as the old adage goes, ‘Every little bit helps,’” Muns said. “Even if we are only able to identify one or two promising sites a year, that could mean an affordable home for several families, some of whom may be located in our community.”
Rep. Dick Thackston, R-Troy, asked Muns to elaborate on the proposal requiring the state to sell property at a “below-market rate and on a competitive basis.”
“What I hope the rules would be put in place to implement this bill would do is suggest that the property be offered initially at a rate that’s below market, and let the competing bidding process go on. If somebody wants to offer more than the minimum bid, then that’s fine,” Muns said. “I’m not suggesting necessarily that the state would have to accept the lowest bid, but I would hope that it starts the bidding process at an attractive level that might enlist developers to bid on it that they might not otherwise have, if the property had been offered at a higher price.”
According to Nick Taylor, director of Housing Action NH, “with land being such a high-driver of housing costs, any opportunity we can take here is worth looking at, leaving no stone unturned.”
“We’ve asked municipalities to step up, the state has stepped up with some of the permitting reforms, (so) there is a great opportunity here with some surplus land,” Taylor said. “One thing we do want to raise with the committee is, ‘What does the actual land look like,’ and ‘How much of it is Department of Transportation land next to a highway and what is developable?”
Taylor referenced meeting minutes from the Governor’s Commission on Government Efficiency last march, noting they looked at identifying state land as a priority to study further. He said there have been continued conversations with the governor’s office to better understand what land is available to make more informed decisions about next steps for the initiative.
Rep. Mark Paige, D-Exeter, asked Taylor to comment on the ability of the state to sell land for below-market rates, and if he thought it was advisable.
“I think working through existing structures that have the capacity to do this – as opposed to departments that are putting things out to bid and may not be used to real-estate transactions – (that) there may be some benefit to working through some existing infrastructure there,” Taylor said. “We think there’s an opportunity, and that would be valuable to look at.”
No immediate action was taken during the meeting.