New Hampshire opens the door to multifamily housing on commercially zoned land - by John Sokul, Jr.

Earlier this year, New Hampshire enacted House Bill 631 (Chapter 201, Laws of 2025), creating new sections RSA 674:77–78, which require municipalities to allow multifamily residential developments on commercially zoned land where adequate infrastructure is available, or can be provided.

This measure represents one of the most significant statewide changes to New Hampshire’s zoning landscape in decades. Beginning July 1, 2026, towns will no longer be able to prohibit residential development in commercially zoned areas that meet the infrastructure test. This will facilitate new residential and mixed-use projects in many areas throughout the state where residential development was not previously allowed.

Several communities have already discussed temporary growth moratoriums or site-plan amendments in response to HB 631. Some of the town growth control measures completely prohibit all new residential projects for at least one year. Such measures risk being deemed ultra vires, going beyond the legal authority of the town, especially if used to circumvent the goal of the HB 631 statute to increase housing throughout the state. Such exclusionary proposals, if enacted, could expose municipalities to litigation or state enforcement actions. For developers, understanding the legal limits of town responses to HB 631 will be essential to protecting property rights.

Developers, investors, and property owners should begin planning now to position assets and existing approvals for this new regulatory environment.

Key Next Steps for Developers:
Redevelopment and Reuse. Adaptive reuse is a key focus of the bill. Review underperforming office and retail centers. They are prime targets for repositioning for mixed-use or multifamily housing, with the potential for substantial regulatory relief for adaptive reuse projects.

Predictable Entitlements. Developers can expect a more straightforward permitting path — multifamily use will become a matter of right in qualifying commercial districts. Identify properties in current commercial zones with existing, planned, or otherwise available infrastructure.

Identify New Market Segments. HB 631 creates opportunities for workforce, senior, and market-rate housing as well as mixed-use projects in previously unavailable locations. 

Engage Local Officials Now. Participate in ordinance-update processes now as towns enter the zoning amendment season to help shape design and infrastructure standards. Towns are acting now to put measures in place before the July 1, 2026 effective date.

Coordinate with Counsel. Legal guidance will be crucial for determining where HB 631 preempts local restrictions and for securing vested rights, especially for previously approved projects, ahead of any municipal pushback.

HB 631 reflects a decisive statewide shift toward integrating housing into commercial districts. It is expected to expand mixed-use and residential opportunities across New Hampshire, while challenging municipalities that have historically restricted multifamily developments.

For additional guidance on how to confidently navigate HB 631 compliance and development strategies, please contact the real estate or land use & development groups at Hinckley Allen.

John Sokul, Jr. is a partner at Hinckley Allen, Manchester, N.H.