FOR IMMEDIATE RELEASE                                                                 Friday, March 21, 2008 Contact: Senator Martha Fuller Clark

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SENATE PASSES LEGISLATION ON WORKFORCE HOUSING

CONCORD – The Senate this week passed two bills designed to make it easier for developers to build low- and moderate-income housing for working people.

The legislation embraces a major goal of the state’s Business and Industry Association, which identified expanded opportunities for workforce housing as a top priority this year.

“All citizens in the state benefit from a balanced supply of housing which is affordable to individuals and families of low and moderate income,” said Senator Martha Fuller Clark, (D-Portsmouth) who sponsored Senate Bills 421 and 342.  “The housing shortage poses a threat to the state’s economic growth by creating a barrier to the expansion of the labor force and adversely affects the ability of many communities to host new businesses.”

Senate Bill 421, which passed 23-1, calls on municipalities to provide “reasonable and realistic opportunities for the development of workforce housing” and declares that the opportunity for such development “shall not be prohibited or discouraged by use of municipal planning and zoning powers or by unreasonable interpretation of such powers.”

Lawmakers heard testimony about local zoning strategies – for example those that require large lot sizes – that made it impossible for developers to build anything but luxury homes or age-restricted housing for elders in some communities.

Senate Bill 342, which also passed 23-1, creates a new and expedited appeal process for developers to challenge the decisions of planning or zoning boards that unfairly deny a project that would include affordable housing for working families

Affordable housing advocates say developers currently don’t want to take on the expense of a court challenge and instead restrict any projects that contain workforce housing to communities that will accept them – putting an unfair burden on certain municipalities when workforce housing opportunities need to be spread throughout the state.

Both bills head to the House, along with Senate Bill 199, which would change how taxes are assessed on rent-restricted properties that meet certain conditions. The goal is to assist those who offer subsidized housing and encourage the development of additional subsidized units.