TITLE XVII
HOUSING AND REDEVELOPMENT

Chapter 205
REDEVELOPMENT PROJECTS

Section 205:1

    205:1 Finding and Declaration of Necessity. – It is hereby found and declared (a) that there exist in many communities within this state blighted areas for the reasons set forth in RSA 205:2-b; (b) that such areas impair economic values and tax revenues; that such areas cause an increase in and spread of disease and crime and constitute a menace to the health and safety of the residents of the state, that these conditions necessitate excessive and disproportionate expenditures of public funds for crime prevention and punishment, public health and safety, fire and accident protection, and other public services and facilities; (c) that the clearance, replanning and preparation for rebuilding of these areas, and the prevention or the reduction of blight and its causes, are public purposes for which public money may be spent and private property acquired, consistent with this chapter, and are governmental functions of state concern; (d) that there are also certain areas where the condition of the title, the diverse ownership of the real property to be assembled, the street or lot layouts, or other conditions prevent a proper development of the real property, and that it is in the public interest that such areas, as well as blighted areas, be acquired by eminent domain, consistent with this chapter, and made available for sound and wholesome development in accordance with a redevelopment plan, and that the exercise of the power of eminent domain and the financing of the acquisition and preparation of real property by a public agency for such redevelopment is likewise a public use justifying the use of the powers of eminent domain when exercised consistent with RSA 205:3-b and a public purpose for which public money may be expended and such other powers authorized; (e) that redevelopment activities will stimulate residential construction which is closely correlated with general economic activity; and that such undertakings authorized by this chapter will aid the production of better housing and more desirable neighborhoods and community development at lower costs and will make possible a more stable and larger volume of residential construction, which will assist materially in achieving and maintaining full employment; and (f) that it is in the public interest that advance preparation for such projects and activities be made now, and that the necessity in the public interest for the provisions hereinafter enacted is hereby declared as a matter of legislative determination.

Source. 1947, 210:1. 2006, 324:5, eff. Jan. 1, 2007.

Section 205:1-a

    205:1-a Findings and Declaration of Necessity. – It is hereby found and declared that (a) certain of the blighted areas may, through the means provided herein, be susceptible of conservation or rehabilitation in such manner that the conditions of blight may be eliminated, remedied or prevented and, to the extent feasible, the salvable blighted areas should be conserved and rehabilitated through voluntary action and the regulatory process, and (b) all powers conferred in this chapter are for public uses justifying the use of the powers of eminent domain when exercised consistent with RSA 205:3-b and public purposes for which public money may be expended and such other powers exercised, and the necessity in the public interest for these provisions is hereby declared as a matter of legislative determination.

Source. 1959, 52:1. 2006, 324:6, eff. Jan. 1, 2007.

Section 205:1-b

    205:1-b Findings and Declaration of Necessity. – It is hereby found and declared that there exist in many communities within this state areas of vacant or predominantly vacant real property which are substandard or blighted for the reasons set forth in RSA 205:2-b; that such areas constitute a serious and growing menace to the safety and health of the communities of this state; that such areas are not being used at all or are being used in an unplanned, haphazard and piecemeal manner; that such areas impair economic values, retard the provision of residential, commercial, industrial, institutional and recreational buildings and other improvements, impair the tax revenues in these communities and threaten the sources of public revenue and the financial stability of these communities, thus preventing the sound growth of these communities and the provision of new places of residence or employment for their citizens; that the development or redevelopment of such areas in these communities in accordance with a comprehensive redevelopment plan is necessary to improve economic values, return important tax revenues, and provide additional places of residence or employment; that the development or redevelopment of such areas cannot be achieved by the ordinary operations of private enterprise without the aids herein provided; that the development or redevelopment of such areas are public purposes for which public monies may be expended and public uses for which the power of eminent domain and other governmental powers may be exercised, consistent with RSA 205:3-b; that the development or redevelopment of such areas in accordance with an approved redevelopment plan will stimulate the investment of private capital, the construction of residential, commercial, industrial, institutional and recreational buildings and the provision of new sources of employment and will eliminate and prevent the recurrence of the existing substandard and blighted and blighting conditions now existing in such areas; and the necessity in the public interest for these provisions is hereby declared as a matter of legislative determination.

Source. 1963, 134:1. 2006, 324:7, eff. Jan. 1, 2007.

Section 205:2

    205:2 Redevelopment Project. – Any housing authority now or hereafter established pursuant to RSA 203, may carry out any work or undertaking (hereafter called a "redevelopment project"): (1) to acquire blighted areas, which are hereby defined as areas (including slum areas) with buildings or improvements which, by reason of dilapidation, obsolescence, overcrowding, faulty arrangement or design, lack of ventilation, light and sanitary facilities, excessive land coverage, deleterious land use or obsolete layout, or any combination of these or other factors, are detrimental to the safety, health, morals, or welfare of the community; (2) to acquire other real property for the purpose of removing, preventing, or reducing blight, blighting factors or the causes of blight; (3) to acquire real property where the condition of the title, the diverse ownership of the real property to be assembled, the street or lot layouts, or other conditions prevent a proper development of the property and where the acquisition of the area by the authority is necessary to carry out a redevelopment plan; (4) to clear any areas acquired and install, construct, or reconstruct streets, utilities, and site improvements essential to the preparation of sites for uses in accordance with the redevelopment plan; (5) to sell or lease land so acquired for uses in accordance with the redevelopment plan; or (6) to accomplish a combination of the foregoing to carry out a redevelopment plan.

Source. 1947, 210:2, eff. June 19, 1947.

Section 205:2-a

    205:2-a Rehabilitation Work. – Any housing authority now or hereafter established pursuant to RSA 203 may carry out as a redevelopment project or as a part of a redevelopment project, any work or undertaking to remove, prevent or reduce blight, blighting factors, or the cause of blight in blighted areas and in areas in the process of becoming blighted, or in portions thereof, by the planning and performance of rehabilitation or conservation work, which may include the making and carrying out of plans for a program of voluntary repair and rehabilitation of buildings or other improvements; the installation, construction or reconstruction of streets, utilities, parks, playgrounds and other improvements; and the work and undertakings under other provisions of this chapter or any combination of such work or undertakings.

Source. 1959, 52:2, eff. April 9, 1959.

Section 205:2-b

    205:2-b Development Authorized. – Any housing authority now or hereafter established pursuant to RSA 203 may carry out as a redevelopment project or as a part of a redevelopment project in any area in which a redevelopment project is determined to be necessary by a housing authority, any work or undertaking to develop or redevelop an area of vacant or predominantly vacant land which is substandard or blighted or in the process of becoming blighted (1) because it is unduly costly to develop or redevelop such an area through the ordinary operations of private enterprise (a) by reason of the existence of ledge, rock, unsuitable soil or other physical conditions or because of the necessity for unduly expensive excavation, fill or grading, or (b) by reason of the need for unduly expensive foundations, retaining walls or unduly expensive measures for waterproofing structures or for draining the area or for the prevention of the flooding thereof or for the protection of adjacent properties and the water table therein or for unduly expensive measures incident to building around or over rights-of-way through the area or for otherwise making the area appropriate for sound development, or (2) because obsolete, inappropriate or otherwise faulty platting or subdivision, division of the area by rights-of-way, diversity of ownership of plots, inadequacy of transportation facilities or other utilities, inadequacy of access to the area, tax and special assessment delinquencies, a substantial change in business or economic conditions or practices, a deterioration of site improvements or facilities, an abandonment or cessation of a previous use or of work on improvements begun but not feasible to complete without the aids provided by this chapter or any combination of the foregoing or other conditions in any such area which are not being remedied by the ordinary operations of private enterprise, result in any such area not being used at all or result in any such area being used in an unplanned, haphazard, or piecemeal manner with building on small parcels or sections of any such area without any overall plan or design, so that in essence any such area is detrimental to the safety, health, morals, welfare or sound growth of the community in which it is situated. The powers granted in this section are in amplification of and in addition to the powers granted in RSA 205:2 and 2-a, with respect to the inclusion of areas of vacant or predominantly vacant land in a redevelopment project. Notwithstanding the provisions of paragraph VI of RSA 203:3, the authority conferred by this section shall be exercised only within the territorial limits of the municipality for which the housing authority is created.

Source. 1963, 134:2, eff. Aug. 17, 1963.

Section 205:3

    205:3 Authority. – In undertaking such redevelopment projects a housing authority shall have all the rights, powers, privileges and immunities that such authority has under the housing authorities law, RSA 203, and any other provision of law relating to slum clearance and housing projects for persons of low income (including, without limiting the generality of the foregoing, the power to make and execute contracts, to issue bonds and other obligations and give security therefor, to acquire real property by eminent domain or purchase, and to do any and all things necessary to carry out projects, except that the power to acquire real property by eminent domain shall be limited as set forth in RSA 205:3-a) in the same manner as though all the provisions of law applicable to slum clearance and housing projects were applicable to redevelopment projects undertaken under this chapter; provided that nothing contained in RSA 203:9 and 10 shall be construed as limiting the power of an authority, in the event of a default by a purchaser or lessee of land in a redevelopment plan, to acquire real property and operate it free from the restrictions contained in said sections.

Source. 1947, 210:3. 2006, 324:8, eff. Jan. 1, 2007.

Section 205:3-a

    205:3-a Authority to Take Real Property by Eminent Domain Limited. – In undertaking redevelopment projects pursuant to this chapter, a housing authority shall have the power to take real property by eminent domain. The power of eminent domain shall be used only for the purpose of acquiring real property that will be put to public use, as defined in RSA 205:3-b.

Source. 2006, 324:9, eff. Jan. 1, 2007.

Section 205:3-b

    205:3-b "Public Use" Defined. –
Notwithstanding any other provision of law to the contrary, in this chapter, "public use" means:
I. (a) The possession, occupation, and enjoyment of real property by the general public or governmental entities;
(b) The acquisition of any interest in real property necessary to the function of a public or private utility or common carrier either through deed of sale or lease;
(c) The acquisition of real property to remove structures beyond repair, public nuisances, structures unfit for human habitation or use, and abandoned property when such structures or property constitute a menace to health and safety; and
(d) Private use that occupies an incidental area within a public use; provided, that no real property may be condemned solely for the purpose of facilitating such incidental private use.
II. Except as provided in subparagraphs I(b) and (d) of this section, public use shall not include the public benefits resulting from private economic development and private commercial enterprise, including increased tax revenues and increased employment opportunities.

Source. 2006, 324:9, eff. Jan. 1, 2007.

Section 205:4

    205:4 Initiation of Projects. – An authority shall not initiate any redevelopment project under this chapter until the governing body (or agency designated by it or empowered by law so to act) of each city or town (hereinafter called "municipalities") in which any of the area to be covered by said project is situated, has approved a plan (herein called the "redevelopment plan") which provides an outline for the development or redevelopment of said area and is sufficiently complete (1) to indicate its relationship to definite local objectives as to appropriate land uses and improved traffic, public transportation, public utilities, recreational and community facilities and other public improvements; (2) to indicate proposed land uses and building requirements in the area; and (3) to indicate the method for the temporary relocation of persons living in such areas; and also the method for providing (unless already available) decent, safe and sanitary dwellings substantially equal in number to the number of substandard dwellings to be cleared from said area, at rents within the financial reach of the income groups displaced from such substandard dwellings. Such municipalities are hereby authorized to approve redevelopment plans through their governing body or agency designated by it for that purpose. Any municipality, as defined in the housing authorities law, RSA 203, shall have the same rights and powers to cooperate with and assist housing authorities with respect to redevelopment projects that such municipality has pursuant to such law for the purpose of assisting the development of administration of slum clearance and housing projects in the same manner as though the cooperation provisions of the housing authorities law were applicable to redevelopment projects undertaken under this chapter.

Source. 1947, 210:4, eff. June 19, 1947.

Section 205:4-a

    205:4-a Disasters. – Any area certified by the governing body of a city or town to be in need of redevelopment or rehabilitation as a result of a flood, fire, hurricane, earthquake, storm, or other catastrophe respecting which the governor of the state has certified the need for disaster assistance under Public Law 875, Eighty-first Congress, or other federal law, shall be a blighted area within the meaning of this chapter but clauses (1) and (3) of RSA 205:4 shall not be applicable to a redevelopment plan for a redevelopment project carried out in such a disaster area.

Source. 1959, 49:1, eff. June 8, 1959.

Section 205:4-b

    205:4-b Early Acquisition and Disposition of Real Property. – An authority may, with the approval of the governing body (or agency designated by it or empowered by law so to act) of the municipality in which the real property lies, and prior to the approval of a redevelopment plan for a redevelopment project including such real property, (1) acquire any real property constituting the whole or any part or parts of any area which it has determined to be an area necessary for its purposes under this chapter, as amended, and for which it is preparing a redevelopment plan for a redevelopment project and clear the areas so acquired, and (2) dispose of said real property at any time after acquisition in the manner provided in RSA 205:5 and subject to the provisions of any redevelopment plan which may later be approved for the area of any redevelopment project including such real property. For the acquisition and disposition of any such real property an authority shall have all the rights, powers, privileges and immunities that are granted to the authority in this chapter with respect to any real property included in a redevelopment project for which a redevelopment plan has been approved as provided in RSA 205:4.

Source. 1965, 109:1, eff. May 20, 1965.

Section 205:4-c

    205:4-c Cooperation in Undertaking Tax Increment Financing for Redevelopment Projects. –
Any municipality may, in addition to the cooperation provided in RSA 203:23, authorize financing for any redevelopment project as provided in paragraphs I and II and may enter into an agreement with an authority relating to one or more redevelopment projects, which need not be contiguous nor undertaken simultaneously, to provide that the taxes raised by assessment on the taxable property included as part of a redevelopment project shall be divided as follows:
I. In each year, that portion of the taxes for said year which would be raised from said taxable property (including taxable property added to a redevelopment project area by amendment of a redevelopment plan) by the rate at which the tax is assessed for said year by and for the municipality upon the initial valuation thereof in the tax year in which the redevelopment plan for the project was first approved, shall be allocated to the municipality as taxes by and for said municipality; and
II. Of the taxes raised each year by the rate at which the tax is assessed for said year upon the actual valuation of the taxable property in the redevelopment project as shown upon the assessors' valuation books for that year, that portion which is in excess of the amount described in paragraph I hereof shall be allocated to and, when collected, shall be paid into a special fund of the authority for the payment of the principal of and interest on loans, moneys advanced to, or indebtedness (whether funded, refunded, assumed, or otherwise) incurred by such authority to finance or refinance, in whole or in part, such redevelopment project. Unless and until the total sum of the valuations of the taxable property in the redevelopment project exceeds the initial valuation, all of the taxes raised from said property shall be allocated to the municipality as taxes by and for said municipality. When such loans, advances, and indebtedness, if any, and interest thereof, have been paid or when the sums held in the special fund created hereby together with the interest thereon, are sufficient to make such payment, all moneys thereafter received from taxes upon the taxable property in such redevelopment project shall be allocated to the municipality as taxes by and for said municipality and the agreement shall in all respects terminate.
III. The provisions of this section shall apply to any redevelopment project previously undertaken or to be undertaken.
IV. In this section:
(a) "Initial valuation" means (1) the total sum of the valuations of the taxable property in a redevelopment project as shown in the last assessor's valuation books used in connection with the taxation of such property prior to the initial approval of the redevelopment plan for the redevelopment project by the municipality, reduced for each tax year by the total sum of valuations of property in the redevelopment project which are exempt from taxation by reason of acquisition by the authority or by any other person or public body after such initial approval; or (2) whatever other figure shall be established by the municipality in the initial approval vote;
(b) "Taxes by and for said municipality" includes all taxes, assessments or other charges raised by the municipality through taxes on property in said municipality for the benefit of itself or of other governmental jurisdictions or both.

Source. 1977, 276:2, eff. Aug. 21, 1977.

Section 205:4-d

    205:4-d Repealed by 2013, 7:3, eff. Nov. 1, 2013. –

Section 205:5

    205:5 Land Available for Public or Private Agencies. – The authority may make land in a redevelopment project available for use by private enterprise or public agencies in accordance with the redevelopment plan. Such land may be made available at its use value, which represents the value (whether expressed in terms of rental or capital price) at which the authority determines such land should be made available in order that it may be developed or redeveloped for the purposes specified in such plan. To assure that land acquired in a redevelopment project is used in accordance with the redevelopment plan, an authority, upon the sale or lease of such land, shall obligate purchasers or lessees: (1) to use the land for the purpose designated in the redevelopment plan; (2) to begin the building of their improvements within a period of time which the authority fixes as reasonable; and (3) to comply with such other conditions as are necessary to carry out the purposes of this chapter. Any such obligations by the purchaser shall be covenants and conditions running with the land where the authority so stipulates.

Source. 1947, 210:5, eff. June 19, 1947.

Section 205:6

    205:6 Tax Status. – Any property which the authority leases to private individuals or corporations for development under a redevelopment plan shall have the same tax status as if such leased property were owned by such private individuals or corporations.

Source. 1947, 210:6, eff. June 19, 1947.

Section 205:7

    205:7 Federal Assistance. – An authority may borrow money or accept contributions from the federal government to assist in its undertaking redevelopment projects. An authority may do any and all things necessary or desirable to secure such financial aid (including obligating itself in any contract with the federal government for annual contributions to convey to the federal government the project to which said contract relates upon the occurrence of a substantial default thereunder), in the same manner as it may do to secure such aid in connection with slum clearance and housing projects under the provisions of the housing authorities law.

Source. 1947, 210:7, eff. June 19, 1947.

Section 205:8

    205:8 Bonds. – Bonds or other obligations issued by a housing authority in connection with a redevelopment project pursuant to this chapter shall be security for public deposits and legal investments to the same extent and for the same persons, institutions, associations, corporations, and other bodies and officers as bonds or other obligations issued pursuant to the housing authorities law in connection with the development of slum clearance or housing projects.

Source. 1947, 210:8, eff. June 19, 1947.

Section 205:9

    205:9 Advisory Board. – For the purpose of coordinating its activities and undertakings under this chapter with the needs and undertakings of other local organizations and groups, a housing authority may establish an advisory board consisting of the chairman of the authority (who shall be chairman of the advisory board) and of sufficient members to represent so far as practicable: the general public and consumers of housing; general business interests; real estate, building and home financing interests; labor; any official planning body in the locality; and church and welfare groups. The members of the advisory board shall be appointed by the chairman of the authority.

Source. 1947, 210:9, eff. June 19, 1947.

Section 205:9-a

    205:9-a Preliminary or General Planning of Redevelopment Activities. – A housing authority is authorized to make preliminary or general plans outlining redevelopment activities for the community as a whole or for neighborhoods to embrace 2 or more redevelopment project areas, preliminary surveys to determine if the undertaking and carrying out of a redevelopment project are feasible, and plans for carrying out a program of voluntary repair and rehabilitation of buildings and improvements.

Source. 1959, 49:2, eff. June 8, 1959.

Section 205:9-b

    205:9-b Demonstration Projects. – A housing authority is authorized to develop, test and report methods and techniques, and carry out demonstrations and activities, for the prevention and the elimination of urban blight.

Source. 1959, 49:2, eff. June 8, 1959.

Section 205:10

    205:10 Powers Hereunder Are Supplementary. – The powers conferred by this chapter shall be in addition and supplemental to the powers conferred by any other law.

Source. 1947, 210:10, eff. June 19, 1947.

Section 205:11

    205:11 Workable Program. – The governing body of a municipality, or such public officer or public body as it may designate, is hereby authorized to prepare a workable program, which may include an official plan of action as it exists from time to time for effectively dealing with the problem of blighted, deteriorated or deteriorating areas within the community and for the establishment and preservation of a well planned community with well organized neighborhoods, for utilizing appropriate private and public resources to eliminate and to prevent the development or spread of such areas, to encourage needed rehabilitation, to provide for the redevelopment of blighted areas, and to establish and preserve a well planned community.

Source. 1959, 52:3, eff. April 9, 1959.

Section 205:12

    205:12 Relocation Payments. – A housing authority is authorized to make plans for relocation of and to make payment to persons, including families, business concerns and others, displaced by a redevelopment project, for moving expenses and loss of property for which reimbursement or compensation is not otherwise made, including the making of such payments financed by the federal government, provided that any amount set aside for any such payments not financed by the federal government shall be approved by the governing body of the municipality.

Source. 1959, 52:3, eff. April 9, 1959.