The 2010 legislative session is complete, and several new laws impacting the real estate industry have either gone into effect or will shortly. Below you'll find information regarding some of the bills which have become law and could impact your business and your clients.

If you have any questions, feel free to contact NHAR Government Affairs Director Bob Quinn: bob@nhar.com or 603-225-5549.

Liens for housing code violations and landlord agents

Chapter Law 203 (SB 354) — effective date January 1, 2011

• Entitles a municipality to a lien whenever a court enters a fine against a property owner for housing code violations.
• Lien must be filed within 45 days of fine; foreclosure can begin 120 days after filing.
• Every owner of restricted property who rents for residential use, with some exceptions, must file with city/town the name of authorized person to accept service of process.
• Vacation or recreational rental units are exempt.

Complete text of law is here.

Condominium liens for unpaid monthly common expenses may take priority over first mortgage

Chapter Law 142 (HB 1340) — effective date January 1, 2011

• Six month maximum on condo fees.
• Only impacts mortgages executed after 1/1/11.
• Notification of late condo payments must be given to the lender.

Complete text of law is here.

Municipalities are prohibited for merging preexisting subdivided lots or parcels except by consent of owner

Chapter Law 345 (SB 406) — effective date September 18, 2010

• Merger of lots had been occurring involuntarily and without notification to the owner of the land.
• It is not clear that the bill prohibits mergers prior to the effective date or if municipalities can require contiguous substandard lots to be merged prior to development.

Complete text of law is here.

Recognition of IRS Section 1031 like-kind exchanges involving single member LLCs, TICs and other disregarded entities are exempt from the business profits tax

Chapter Law 286 (SB 483) — effective date July 8, 2010

• NHAR-backed bill prohibits the NH Department of Revenue from applying tax as no gain is realized.
• NH had been the only state in the country taxing these types of transactions.

Complete text of law is here.

Moratorium on municipal fire sprinkler requirements

Chapter Law 282 (HB 1486) — effective date July 8, 2010

• One-year moratorium on the ability of municipalities to adopt requirement for sprinklers in detached one-and-two family dwellings.
• Does not impact requirements in place prior to July 8, 2010.
• Does not prohibit requiring sprinklers when application is scattered or premature for lack of adequate fire protection.

Complete text of law is here.

Enabling property assessed clean energy (PACE) districts

Chapter Law 215 (HB 1554) — effective date Aug 27, 2010

• Authorizes Municipality to Establish Energy Efficiency and Clean Energy Districts
• Municipality May Make Loans to Property Owners for Energy Efficiency Improvements and those cities/towns can incur debt for financing.
• Repayment is collected through the property tax
• Gives Priority Lien ahead of Mortgage
• Fannie and Freddie have Raised Objections Due to Priority Lien be Given

Complete text of law is here.

Current use and land change tax amended

Chapter Law 237 (HB 1609) — effective date April 1, 2010

• Clarifies the LUCT is a tax on the change in the use of the land and not on the land itself.
• Allows local officials 18 months to discover LUCT is payable
• Changes language to allow Current Use Board to apply rate for unproductive land lower than the rates for other catagories.
• Clarifies taxation on condo development. Only development area is removed with percent interest in the open space to the units.

Complete text of law is here.