The New Hampshire Legislature has introduced Senate Bill 283, a significant piece of legislation aimed at modifying how municipalities calculate floor-area ratios (FAR) under local building ordinances. Introduced on January 24, 2025, the bill seeks to exclude below-grade areas, such as basements and cellars, from FAR calculations. This change is intended to enhance the potential for new construction by allowing for greater building heights and capacities.

The bill is sponsored by a bipartisan group of legislators, including Senators Murphy, Innis, Perkins Kwoka, and Pearl, along with Representatives Osborne and Alexander Jr. It has been assigned to the Commerce Committee for further review.

Key provisions of SB 283 include a clear definition of FAR and below-grade areas, as well as a mandate for municipalities to review and adjust height limitations accordingly. Proponents argue that this adjustment will facilitate more efficient land use and address housing shortages by enabling developers to maximize the use of available space.

However, the bill has sparked debates regarding its implications for local zoning regulations and community aesthetics. Critics express concerns that increasing building heights could alter neighborhood character and lead to overcrowding. As discussions continue, stakeholders are weighing the economic benefits of increased construction against potential social impacts.

The passage of SB 283 could have far-reaching implications for New Hampshire's urban development landscape, particularly in areas facing housing shortages. If enacted, it may pave the way for more ambitious construction projects, potentially reshaping local communities and their infrastructure.

As the bill moves through the legislative process, its future remains uncertain, with ongoing discussions expected to address both the benefits and drawbacks of the proposed changes.