Senate Commerce Committee
Aaron Jones 271-2609
HB 633-FN, creating a legislative study committee to investigate the implementation of housing investment trusts in New Hampshire.
Hearing Date: April 10, 2025
Time Opened: 9:45 a.m. Time Closed: 9:54 a.m.
Members of the Committee Present: Senators Ricciardi, Murphy, McGough, Fenton and Reardon
Members of the Committee Absent : Senator Innis
Bill Analysis: This bill creates a legislative study committee to investigate the implementation of housing investment trusts in New Hampshire.
Sponsors:
Rep. Daniels | Rep. Sweeney | Sen. Perkins Kwoka |
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Who supports the bill: Representative Gary Daniels, Representative Joe Alexander, Jack Ruderman (NH Housing), Nick Taylor (Housing Action NH), Robert Tourigny (NeighborWorks)
Who opposes the bill: Janice Mathews, Sarahlynn Williams, Jane Aitken (CNHT)
Who is neutral on the bill: No one
Summary of testimony presented in support:
Representative Gary Daniels
- This bipartisan bill sought a private sector solution to the housing crisis by using housing investment trusts.
- High rental costs and expensive home prices have led to a shortage of affordable homes for working families. By 2030, there is an expected deficit of 60,000 units.
- As former Chair of Senate Finance, Representative Daniels found that the state poured hundreds of thousands of dollars into affordable housing, yet the problem continued to grow.
- This innovative idea would not use taxpayer money, which is critical as the Legislature faces budgeting challenges this term.
- The Housing Investment Trust would be a 501(c)(3) charity, and it would use private investments to acquire properties, which would provide families with flexible financing options.
- The Trust would be able to purchase and rehabilitate homes, expand the housing supply, and increase state tax revenue.
- The Revolving Loan Fund would support these efforts by allowing capital investors to fund housing projects with repayments going back into the Fund.
- The Trust would be governed by a board of directors and trustees that would ensure its charitable goals are met and beneficiaries are treated fairly. They would help to promote homeownership, wealth accumulation, community development, and job creation.
- The House Judiciary Committee amended HB 633-FN into a study committee; however, Representative Daniels was not unopposed to reinstating the original language, which would enable the state to pursue acquisition of the 501(c)(3) designation without deferring the implementation for a year.
- Representative Daniels expected it would take a few years to fully establish and implement this initiative.
- If the Committee felt this concept needed additional study, Representative Daniels asked the Committee to support the bill as amended by the House.
- Senator McGough asked if the bill as introduced would allow this solution to be pursued much faster.
- Representative Daniels replied yes because it would take time to get the 501(c)(3) designation. If it became a study committee, it would increase the time before this designation could be received. If the original language were passed, an application could be put in right away.
Representative Joe Alexander
- As a member of House Judiciary, Representative Alexander said he saw a lot of merit in this innovative approach. However, he put in the amendment that established the study committee because the Committee did not fully understand the concept.
- Senator Reardon said these already existed in New Hampshire, so she asked what was different about this bill. She believed there was a land trust that owned properties in Laconia.
- Representative Alexander said he had been willing to go forward with the bill as it was introduced; however, the Legislature needed to grasp the concept before it moved forward.
- Senator McGough said the House Judiciary Committee might not have been aware of trust-related issues. He asked if there would have been a different result if it went to the House Commerce Committee.
- Representative Alexander believed that, and he also believed it would have had a different result in the House Housing Committee.
Summary of testimony presented in opposition: None
Neutral Information Presented: None
AJ
Date Hearing Report completed: April 14, 2025