1. (a) Designation applicants shall receive points for the adoption of land use regulations and ordinances in order to qualify for HC designation.
2. (b) A municipality shall receive a minimum of 10 points and a maximum of 40, based on its adoption of land use regulations and ordinances which the department determines are necessary to promote the development of workforce housing and other forms of housing necessary for the economic development of the state. To receive points for adopting or adopted regulations and ordinances satisfying the requirements RSA 674:59 and 10 points for up to 4 of the land use regulation and ordinance identified in 504.05(k), a municipality shall provide a copy of the relevant sections of the land use regulations and ordinances which demonstrate they have met the minimum standards.

3. (c) Municipalities incorporated under RSA 49-C or RSA 49-D, shall demonstrate the following requirements:

   1. (1) That they meet the requirements of RSA 674:59 relative to workforce housing; and
   2. (2) That they adopted at least one of the eligible land use regulations and ordinances outlined in Bea 504.05(k), which shall meet the minimum standards listed in the rules to be eligible for the HC designation.
4. (d) Municipalities which have not adopted a zoning ordinance pursuant to RSA 674:16, but do not otherwise bar the development of workforce housing, or in fact encourage it, may be deemed to have met the criteria for scoring based on adoption of land use regulations and receive the maximum score of 40 points. The department shall evaluate such circumstances and make a determination as to whether that municipality’s lack of zoning, or existing regulatory environment, achieves the spirit and purpose of the HC designation as it pertains to the land use regulation criteria.
5. (e) Applicants shall receive a maximum of 10 bonus points if they have 5 or more qualifying land use regulations and ordinances.
6. (f) Bonus points shall be available to smaller communities. A maximum of 15 bonus points shall be awarded to municipalities with 10,000 or fewer residents as of the most recent decennial census conducted by the U.S. Census Bureau. These additional bonus points shall be inclusive of the 10 bonus points outlined above for qualifying land use regulations and ordinances, as no applicant can receive more than 15 bonus points from this qualifying category.
7. (g) When evaluating a municipality’s application for HC designation, the department shall review the text of all ordinances for which the applicant municipality seeks points and shall award points only if the ordinance meets the established minimum criteria and is consistent with the purposes of the HC designation.
8. (h) A municipality may substitute up to 2 other land use regulations or ordinances, including innovative land use controls adopted pursuant to RSA 674:21, which promote the development of workforce housing and other types of housing necessary for the economic development of the state, that are not included in the list of qualifying ordinances for an HC designation application round for the purposes of satisfying the requirements of this section. The municipality shall provide the department any substituted land use regulations or ordinances including supporting information demonstrating said substitute land use regulation or ordinance positively impacts the development of housing. Substituted land use regulations or ordinances which demonstrate a positive impact on housing development shall be valued at 10 points, unless the criteria cap or maximum has been reached.
9. (i) The department shall make additional bonus points available based on department priorities and best practices.
10. (j) The department shall review the preliminary list of qualifying regulations and ordinances in Bea 504.05(k), prior to each HC designation application round. As noted in Bea 504.05(b), each regulation or ordinance is valued at 10 points, up to the maximum point total applicable to a municipality’s HC designation application.

11. (k) The list of qualified ordinances shall be as follows:

    1. (1) A workforce housing ordinance shall:

       1. a. Allow for the development of multi-family workforce housing including rental housing containing 5 or more dwelling units as defined in RSA 674:58, II as a matter of right in a majority of the land area that is zoned to permit residential uses within the municipality;
       2. b. Not place requirements on minimum lot size and other dimensional requirements including height and parking requirements that are more restrictive than for other types of allowed residential uses; and
       3. c. Contain provisions which require the workforce housing units be subject to a deed restriction as defined in Bea 502.13, requiring a long-term affordability covenant of no less than 10 years with a provision for municipal or third-party monitoring;

       4. (1) An accessory dwelling unit ordinance shall:

          1. a. Allow at least one attached ADU as a matter of right in all zoning districts that permit single-family dwellings;
          2. b. Allow detached ADUs as a matter of right, by conditional use permit pursuant to RSA 674:21, or by special exception pursuant to RSA 674:33, IV, in all zoning districts that permit single-family dwellings;
          3. c. Not require more than one off-street parking space per ADU; and
          4. d. Comply with the requirements of RSA 674:72;
          5. (m) A cluster development ordinance, also known as an open space residential development ordinance or a conservation subdivision ordinance, shall:
          6. a. Allow for cluster developments as a matter of right in a majority of the land area that is zoned to permit residential use within the municipality;
          7. b. Provide a density bonus which allows for at least a 20 percent density bonus above the total number of units allowed in a conventional subdivision in exchange for protecting more than the minimum amount of open space as required by the cluster development ordinance; and
          8. c. Have a density formula or yield plan which allows for the applicant to determine the maximum number of homes that could be built under the cluster development ordinance at a design review phase conducted pursuant to RSA 676:4, II(b);

          9. (1) A form-based code shall allow:

             1. a. A diverse range of house types;
             2. b. A minimum of 5 dwelling units per building; and
             3. c. The adaptive reuse of existing buildings into residential buildings in downtown and village centers or other areas where there is an existing concentration of development as outlined in a municipality’s master plan by a matter of right;

          10. (2) An inclusionary zoning ordinance shall:

              1. a. Require that an economically viable percentage of the total number of housing units shall be workforce housing that is deed-restricted, but no less than 10 percent of the units for 10-plus unit developments; and
              2. b. The voluntary commitment of the property owner to provide deed-restricted workforce housing shall result in the property owner receiving a minimum 20 percent density bonus above the base density permitted in the zoning district or an allowance to build an extra story of housing;

          11. (3) A manufactured housing ordinance shall, in accordance with RSA 674:32, I:

              1. a. Allow manufactured housing as defined in RSA 674:31 and RSA 205-A:1, I on individual lots in most land areas in districts zoned to permit residential uses within the municipality, with parking and density requirements no more restrictive than for other residential uses allowed in such districts; or
              2. b. Provide:

              3. i. Reasonable and realistic opportunities for manufactured housing parks as defined in RSA 205-A:1, II in most land areas in districts zoned to permit residential uses within the municipality, with parking and density requirements no more restrictive than for other residential uses allowed in such districts; and

                 ii. Reasonable and realistic opportunities for manufactured housing subdivisions in a majority of the land areas in districts zoned to permit residential uses within the municipality with parking and density requirements no more restrictive than for other residential uses allowed in such districts;

          12. (4) A missing middle housing ordinance shall allow as a matter of right in a majority of the land area that is zoned to permit residential uses that allow structures which contain as few as 2 housing units per structure and as many as 8 housing units per structure. Municipalities which enable higher density may allow for more than 8 units per structure as part of their missing middle housing ordinance;

          13. (5) A mixed-use zoning ordinance shall:

              1. a. Provide reasonable and realistic opportunities for a mix of residential, commercial, and retail uses in the same building or on the same lot as a matter of right;
              2. b. Allow multi-family housing containing 5 or more dwelling units as defined in RSA 674:58, II as a matter of right for new developments in the mixed-use zoning district; and
              3. c. Allow the conversion of space in existing buildings or structure to residential use as a matter of right in the mixed-use zoning district without the need for a change of use permit;

          14. (6) A multi-family housing zoning ordinance shall:

              1. a. Allow multi-family housing that is not age-restricted housing as a matter of right in either all zoning districts that encourage higher-density mixed-use development or all multi-family base or overlay zoning districts; and
              2. b. Not place a restriction on the number of housing units in a multi-family building or structure that meets the definition of multi-family housing;
          15. (7) A planned unit development ordinance shall allow PUD as a matter of right in either a planned unit development base or overlay zoning districts or other zoning district that encourages higher-density mixed-use development, missing middle housing enabling zones, cluster development enabling zones, multi-family enabling zones, or in most land areas in districts zoned to permit residential uses within the municipality;

          16. (8) A zoning ordinance shall require minimum lot sizes for residential uses in most land areas in districts zoned to permit residential uses within the municipality that are:

              1. a. No greater than 43,560 square feet or one acre for lots with the best soil types and no slope if a majority of the lots in the zoning district do not have access to public water or sewer;
              2. b. No greater than 10,890 square feet or ¼ of an acre if a majority of the lots in the zoning district have access to public water and sewer; or
              3. c. No greater than 21,780 square feet or ½ of an acre if a majority of the lots in the zoning district have access to public water or sewer;

          17. (9) A zoning ordinance shall in most land areas in districts zoned to permit residential uses within the municipality:

              1. a. Allow as a matter of right dwelling units that are as small as 220 square feet as long as they meet all requirements of the state fire code, RSA 153 and the state building code, RSA 155-A; and
              2. b. Not place any limitations on the construction of tiny houses on foundations that are 400 square feet or less that meet the requirements of IRC Appendix Q as included in the state building code, RSA 155-A;
          18. (10) In most land areas in districts zoned to permit residential uses within the municipality, the zoning ordinance, site plan review regulation, subdivision regulation, or innovative land use control shall not require more than one off-street parking space for any housing unit; and

          19. (11) A transfer of development rights ordinance shall:

              1. a. Designate sending and receiving zones;
              2. b. Include a formula or mechanism to purchase additional density in the receiving zone, with resulting funds dedicated to an affordable housing fund identified in Bea 504.09(c)(5) or a conservation fund;
              3. c. Include a mechanism for the property owner to sell or donate the development rights to their property; and
              4. d. Include a legal mechanism to ensure that land in the sending zone is conserved.

Source. #14043, eff 8-8-24