Housing Action Plan

July 2026 
Draft

The Housing Committee presented its recommendations to the City Council on July 13, 2026. The Council referred the matter to the Planning Board for further review. It is anticipated that the Planning Board will discuss the recommendations at its August 20, 2026 meeting.

An image of Ruth Lewin Griffin Place
Ruth Lewin Griffin Place Below Market Rate Housing Complex

Purpose

Identify practical steps to increase housing options and improve affordability.

Approach

Coordinate zoning, redevelopment strategies, housing programs, and the Master Plan.

Outcome

Provide a clear roadmap with actions, responsible parties, and timeframes.

In This Plan

Over the past decade, the City of Portsmouth has taken a consistent and proactive approach to understanding and addressing local housing needs. This effort has included a combination of planning studies, public engagement, zoning ordinance and map updates, and policy initiatives aimed at increasing housing opportunities, improving affordability, and supporting long-term community stability.

City Council direction

  • Increase housing supply
  • Reduce costs and simplify development
  • Expand below market-rate housing options
  • Coordinate with the Master Plan update

1

Update the Rules

2

Encourage Redevelopment

3

Broaden Housing Choices

4

Track Progress

A strong foundation for this work was established through a series of housing-related studies and reports. Beginning with the Housing Committee Final Report and City Council Housing Policy in 2016, the City has continued to build on its understanding of local housing conditions through ongoing research and analysis. This includes the "Places to Live" study circle dialogue in 2024, an Inclusionary Zoning Analysis completed the same year, and earlier efforts such as the Portsmouth Market Study (2022) and Housing Development Trends analysis (2020).

An image of Market Square in Portsmouth with the North Church and Congress Street

Housing has been the top priority of both the current City Council and the prior Council. The 2026–2027 City Council set a clear goal of increasing housing supply for all income levels, reducing costs, simplifying the development process, and expanding below market-rate housing options. This Council also directed the creation of this Housing Action Plan and a comprehensive update of the zoning ordinance.

This direction builds on the goals of the 2024–2025 City Council, which emphasized expanding housing choices, increasing below market-rate housing, and advancing zoning changes to support housing development. That Council also supported initiatives such as the Housing Navigator program, the Housing Blue Ribbon Committee, and the establishment of a Below Market Rate Housing Trust Fund.

Over the past two years, residents and community advocates devoted substantial time and expertise to housing in Portsmouth, offering comment and producing research, analytical tools, and a proposed framework of actions brought to the Council and the Housing Committee. That work informed the Council's February 2026 direction to create this Housing Action Plan, and much of it is reflected in the actions that follow. The City welcomes this kind of engagement — addressing Portsmouth's housing challenges will continue to require the knowledge, energy, and participation of community members.

Zoning Changes

Key point: The City has made a number of updates to its zoning ordinance to better accommodate housing development. Portsmouth maintains a zoning framework that is regularly reviewed and amended, with updates adopted as recently as 2025 and 2026. Recent amendments have directly addressed housing-related barriers, including updates to accessory dwelling unit (ADU) regulations to comply with state law, modifications to off-street parking requirements, and the introduction of new housing types such as co-living.

Earlier zoning initiatives during this period also helped establish the framework for more flexible land use. The adoption and expansion of the Gateway zoning districts and creation of the Gateway Neighborhood Overlay District have supported redevelopment and encouraged a broader range of housing types in appropriate locations. These efforts have established important groundwork for the current Housing Action Plan.

Housing Production Incentives

Key point: In addition to regulatory updates, the City has explored and advanced a range of policy approaches to support housing production. City Council and Housing Committee discussions have focused on strategies such as allowing conversion of single-family homes into multiple units, expanding mixed-use zoning, and reducing parking-related barriers. The City has also explored financial tools, including the continued use of the Housing Trust Fund and other funding or incentive programs to support housing development.

As a result of these combined efforts, Portsmouth has built a strong foundation for continued progress. The City has not only studied housing issues extensively, but has also taken concrete steps to update regulations, test new approaches, and support development in practice. This body of work directly informs the Housing Action Plan and the recommendations that follow, providing a more coordinated framework for moving forward together with the ongoing Master Plan update.

Master Plan Integration

Key point: This Housing Action Plan is intended to support and help implement the broader goals of the Master Plan. Many of the recommended actions, particularly those related to zoning and land use, will be advanced through the Master Plan update and subsequent changes to the City's zoning regulations. By linking these efforts, the City can ensure that its housing policies are coordinated, consistent, and grounded in a long-term vision for the community.

At its core, the plan makes it easier to create housing, with a specific focus on expanding below market-rate options. Key strategies include allowing more multi-family housing, reducing requirements such as lot size and setbacks, and making it easier to convert large single-family homes into multiple units — supporting new housing in areas that are already developed, rather than relying solely on new growth areas.

The plan also emphasizes better use of underutilized properties, including redevelopment of older commercial and office buildings into housing, and a wider range of housing types, such as smaller homes, clustered housing, workforce housing, and live/work units, to serve residents at different stages of life and income levels. Financial tools and programs round out the plan, including the Housing Trust Fund, in-lieu payment options, and homebuyer assistance programs, along with a continued commitment to preserving existing below market-rate housing, expanding senior housing options, and complying with workforce housing requirements. Each action in the plan includes clear steps, a responsible party, and a timeframe, providing a roadmap the City can track over time.

Priority Actions

These seven actions are the plan's top priorities. Prefer to see these in a table?

Housing Action Plan Table (PDF)

1

Expand RSA 79-E tax relief incentives

Expand tax relief incentives to support redevelopment and housing construction in underutilized areas.

Lead: Planning / Assessor / City Council  ·  Timeframe: 0–9 mo

2

Conduct a comprehensive zoning review

Identify regulatory barriers to housing development and prioritize zoning reforms in line with the Master Plan. Create a more user-friendly document.

Lead: City Staff / Consultant / Planning Board / City Council  ·  Timeframe: 1–2 yr

3

Allow commercial-to-residential conversions

Amend zoning to allow conversion of commercial and office buildings into residential units, increasing housing supply without new land consumption.

Lead: Planning Staff / Planning Board / City Council  ·  Timeframe: 0–6 mo

4

Expand cottage housing and clustered small-lot development

Identify zoning districts and neighborhoods suitable for small, clustered housing options.

Lead: Planning / Planning Board / City Council  ·  Timeframe: 6–12 mo

5

Establish an in-lieu fee program

Allow developers to make a payment in lieu of on-site affordable units, directed to the Housing Trust Fund.

Lead: Planning / Planning Board / City Council  ·  Timeframe: 0–6 mo

6

Continue to waive fees for nonprofit below market-rate housing projects

Waive fees as requested for nonprofits undertaking below market-rate housing projects, continuing the City's past practice.

Lead: City Council  ·  Timeframe: Ongoing

7

Rezone Office Research and General Business districts

Identify parcels zoned Office Research (OR) or General Business (GB) and propose new zoning designations that allow mixed-use and residential development.

Lead: Planning / Planning Board / City Council  ·  Timeframe: 0–6 mo

Full List of Implementation Actions

See all 12 additional actions in the plan

Expand multi-family zoning

Change single-family districts to allow multi-family housing, increasing supply.

Lead: City Staff / Consultant / Planning Board / City Council  ·  Timeframe: 1–2 yr

Review dimensional zoning standards

Reduce minimum lot sizes, frontage requirements, and setbacks to create more housing opportunities.

Lead: Planning / Consultant / Planning Board / City Council  ·  Timeframe: 1–2 yr

Allow conversion of single-family homes into multiple units

Allow large homes to be converted into multiple dwelling units.

Lead: Planning / Planning Board / City Council  ·  Timeframe: 1–2 yr

Deploy and expand the Housing Trust Fund

Fund affordable and workforce housing development through local resources.

Lead: Planning / Finance / Housing Trustees  ·  Timeframe: Ongoing

Develop homebuyer assistance programs

Support residents in accessing homeownership opportunities.

Lead: City Council / Community Development / Housing Committee  ·  Timeframe: 1–3 yr

Plan outlying areas for new residential growth

Designate areas for future housing demand based on the Master Plan.

Lead: Planning / Consultant / Planning Board / City Council  ·  Timeframe: 1–2 yr

Simplify the Form-Based Code

Improve usability and encourage more below market-rate housing.

Lead: Planning / Consultant / Planning Board / City Council  ·  Timeframe: 1–2 yr

Adjust building height requirements

Increase height limits to add density where appropriate.

Lead: Planning / City Council  ·  Timeframe: 1–2 yr

Allow live/work units

Allow flexible housing that integrates workspace.

Lead: Planning / Planning Board / City Council  ·  Timeframe: 1–2 yr

Preserve existing below market-rate housing

Protect existing affordable housing from loss through inventory and extended-term funding opportunities.

Lead: Planning / Housing Trust Fund / Trustees  ·  Timeframe: Ongoing

Create more senior housing

Expand independent living, assisted living, memory care, and aging-in-place support for older residents.

Lead: Community Development / City Council  ·  Timeframe: 2–5 yr

Strengthen the workforce housing ordinance

Adopt or strengthen a local workforce housing ordinance consistent with NH RSA 674:58-61.

Lead: Planning / Legal / Planning Board / City Council  ·  Timeframe: 1 yr

Share your feedback

[[LINK or embed a comment card Microsoft Form]]

Current Housing Projects