Bagley: To increase affordable housing, NH needs better laws

Portsmouth, like many cities across the country, is facing a housing crisis driven by factors such as population growth, limited land availability, and rising construction costs. However, a significant hurdle in our efforts to address this crisis is Dillon's Law, which restricts our city's authority to mandate affordable or workforce housing in new developments.

Andrew Bagley
Andrew Bagley

Dillon's Law, originating from an 1868 Iowa court case, limits local governments' powers to actions explicitly permitted by state law. In terms of housing policy, this restriction impedes Portsmouth's ability to enact measures promoting affordability and housing diversity. Consequently, developers do not have requirements to include affordable housing in projects, exacerbating the shortage of such homes. Unlike our neighboring states of Massachusetts and Maine, which have Home Rule status and greater flexibility in housing requirements, New Hampshire operates under Dillon's Law.

The connection between housing options and supply-demand dynamics is clear. With demand outpacing supply, housing prices skyrocket, rendering homeownership unattainable for many, including essential workers like first responders, teachers and nurses.

Addressing this issue necessitates a reassessment of our housing policy approach and advocacy for reforms that empower local governments. This includes advocating for changes to state laws that hinder the implementation of inclusionary zoning policies, such as mandating a percentage of affordable units in new developments. By incentivizing diverse housing, we can increase the supply of affordable homes and cultivate inclusive communities.

Moreover, the lack of affordable housing has widespread implications, impacting our economy, social fabric and future. Businesses struggle to attract employees, families endure substandard living conditions, and younger generations are priced out of their communities.

Effectively tackling the housing crisis requires bold action at both the local and state levels. Overcoming Dillon's Law constraints and advocating for reforms can facilitate the implementation of effective housing policies in Portsmouth, fostering inclusive, sustainable communities where housing is a right for all. Fortunately, our local state Sen. Rebecca Perkins Kwoka and the local House delegation support modernizing housing laws in New Hampshire. However, achieving meaningful change on these issues in the New Hampshire legislative bodies is challenging, and residents may consider becoming local advocates by reaching out to state house representatives through emails or participating in hearings in Concord.

At the local level, the City Council is actively making significant changes to our zoning code with the assistance of a grant-funded housing navigator staff position at City Hall. Our zoning regulations have evolved over the decades, sometimes unintentionally, to greatly restrict housing supply and walkable neighborhoods. Under our current regulations, many desirable neighborhoods such as Atlantic Heights, the South End, Middle Street, Islington Creek, etc., would be illegal to build today. It is imperative that we change these regulations to encourage smart, sustainable growth.

Andrew Bagley is a Portsmouth city councilor.

This article originally appeared on Portsmouth Herald: Bagley: To increase affordable housing, NH needs better laws