Progress Portsmouth · Housing Action Plan

The plan builds capacity. Nothing in it holds the price.

Portsmouth's draft Housing Action Plan is nineteen actions of real work, and most of it should be adopted. But run every action past one question — does this produce a home still affordable in twenty years? — and two survive. Meanwhile the City's own best housing work, roughly 170 permanently affordable homes already committed, is not in the plan at all.

Prepared for the September public hearings · August 10, 2026
Assessed against the City's published July 2026 draft and its action table, verified August 10, 2026
The plan is not adopted. Nothing here is a criticism of the drafting.
What the plan does well

It makes housing legal to build

Multi-family in more districts, smaller lots, commercial buildings converted to homes, cottage clusters, added height. Portsmouth's rules have blocked the housing the city already has, and this plan goes at that directly. That work is overdue and it should pass.

The one ingredient missing

Nothing keeps a home affordable

Capacity and affordability are different products. In a small, land-capped city that absorbs regional demand, new supply is worth building and will not by itself bring prices within reach of the people who staff the schools, the hospital, and the restaurants.

The test

Nineteen actions, one question

Each action below is scored on whether it, by itself, creates or protects a home that stays affordable long-term. Not whether it is useful — most are — but whether anything in it holds the price.

2
Produce lasting
affordability
3
Could, if the plan
says how
14
Capacity or
compliance only
ActionHolds the price?Why
Expand RSA 79-E tax reliefPriority 1 · 0–9 moNoTime-limited relief with no affordability condition attached. Metric: "Projects." Milestone: "Program used."
Comprehensive zoning reviewPriority 2 · 1–2 yrNoBarrier removal. Necessary groundwork; produces no home directly.
Commercial-to-residential conversionsPriority 3 · 0–6 moNoCapacity, and now largely required by state law rather than chosen locally.
Cottage and clustered small-lot housingPriority 4 · 6–12 moNoSmaller homes are cheaper homes, but nothing holds the price at resale.
In-lieu fee programPriority 5 · 0–6 moCouldRoutes money to the Housing Trust Fund, which can. But the plan does not say what obligation the fee is paid in lieu of.
Waive fees for nonprofit projectsPriority 6 · ongoingNoWorth continuing, but municipal fees are a small share of an affordable project's costs.
Rezone Office Research and General BusinessPriority 7 · 0–6 moNoOpens land to housing. Nothing attaches a condition to what gets built there.
Expand multi-family zoningAdditional · 1–2 yrNoThe plan's most consequential capacity move, and entirely Portsmouth's own call. Still capacity.
Review dimensional standardsAdditional · 1–2 yrNoLot sizes, frontage, setbacks. Metric: "Conforming lots."
Single-family to multi-unit conversionAdditional · 1–2 yrNoA strong capacity tool on a slow clock.
Deploy and expand the Housing Trust FundAdditional · ongoingYes — if fundedThe plan's primary instrument for lasting affordability — and it holds about $480,000, with no dollar target and no recurring revenue source.
Homebuyer assistance programsAdditional · 1–3 yrCouldTurns entirely on resale covenant terms. None are named.
Plan outlying areas for growthAdditional · 1–2 yrNoFuture growth areas, dependent on the Master Plan.
Simplify the Form-Based CodeAdditional · 1–2 yrNoIts milestone reads "More below market rate housing," but the action is a usability rewrite with no affordability mechanism.
Adjust building height requirementsAdditional · 1–2 yrNoMore density where appropriate. Metric: "Units."
Allow live/work unitsAdditional · 1–2 yrNoA housing type. Currently ranked above preservation.
Preserve existing below market-rate housingAdditional · ongoingYesExtending covenants on homes that already exist is the cheapest lasting affordability available. Milestone: "No loss." Sits in the additional list.
Create more senior housingAdditional · 2–5 yrCouldDescribed as a programs review. Whether any resulting homes are income-restricted is not stated.
Strengthen the workforce housing ordinanceAdditional · 1 yrNoRSA 674:58–61 is a duty not to exclude, not a production program. Its own metric says so: "Adopted amendments to be consistent with RSA."

The plan can be adopted with all nineteen actions intact and still contain no mechanism that guarantees a single lasting affordable home. That is not hidden. It is visible in the City's own table.

The one tool that could work is holding about $480,000

Portsmouth did something most New Hampshire cities have not: it built a dedicated vehicle for below market-rate housing. The Council established the Below Market Rate Housing Trust Fund in 2025 on the joint recommendation of the Housing Blue Ribbon Committee and the Trustees of the Trust Funds, with the Legal Department drafting terms deliberately flexible enough to partner with public, nonprofit, and private developers. That is real work by people who took the problem seriously, and the structure they built is sound.

Where the money came from matters, though. The inaugural $500,000 — $250,000 from the City, $250,000 from The Kane Company — was a term of the February 2025 settlement of the McIntyre lawsuits, an agreement the City announced as resolving the litigation with no monetary damages for either party. The fund was capitalised by the resolution of a lawsuit. That is not a revenue model anyone can repeat on purpose.

The issue is scale, and it is not close.

Below Market Rate Housing Trust Fund, entire balance~$480,000
Median price of one Seacoast single-family home, May 2026$942,500

The whole fund is roughly half the price of one house.

  • Both founding contributions were one-time. The fund is designed to receive donations, grants and contributions — there is no recurring revenue source attached to it.
  • Its first disbursement, authorised by Council in June 2026, was $65,000 for an Artist Live/Work Studio Study. Progress Portsmouth has not established whether this is predevelopment work tied to a specific project, and takes no position on the expenditure.
  • The Housing Action Plan lists "Deploy and expand the City's Housing Trust Fund" as an ongoing action with the metric "Units funded." It names no dollar target and no source of new money.

The real question is not the balance — it is the pipe. A fund of this size with a recurring annual revenue stream becomes a serious instrument within a decade. A fund of any size without one gets spent once and is gone. The plan proposes to "expand" the fund without saying where the money comes from.

The part that changes the picture

Portsmouth is already building permanently affordable homes. The plan does not mention it.

The nineteen actions contain no commitment to put city land toward housing. That reads as though Portsmouth has not done this work. It has — twice, in the last eighteen months, and at real scale. Neither appears anywhere in the Housing Action Plan.

90

Sherburne School — permanently affordable units

The City issued a request for qualifications explicitly for the "creation of permanent below market rate housing" on the five-acre, city-owned former school at 35 Sherburne Road, and the Council awarded the redevelopment to the Portsmouth Housing Authority. The project is described by the NH Community Development Finance Authority as ninety permanently affordable homes serving more than two hundred residents.

City-owned land · nonprofit sponsor · Council-awarded · in predevelopment

80+

Kane land gift — permanent below market-rate units

Under the February 2025 McIntyre settlement, The Kane Company committed to donate land within the Gateway Neighborhood Overlay District to the City for the development of at least eighty permanent, below-market-rate homes, co-located in a broader mixed-use development. The same settlement amended the Zoning Ordinance and Map to create an overlay that requires permanent below market-rate housing.

Donated land · settlement obligation · overlay requirement · not yet delivered

Roughly 170 permanently affordable homes are already committed. Portsmouth's plan for housing does not name them, does not track them, and contains nothing that would produce a third one.

This cuts two ways, and both are worth saying at a hearing. The plan understates what the City has accomplished — staff and Council deserve credit for two land-based deals that most New Hampshire cities never attempt. And it means the mechanism that produced Portsmouth's only permanently affordable housing exists nowhere in the document meant to be Portsmouth's housing roadmap. Sherburne came from city-owned land and a nonprofit partner. The Kane units came from a settlement. Neither came from the nineteen actions, and nothing in the nineteen actions would produce another.

Before adoption

Four changes. All of them words.

None of these commits the City to a dollar. Each can be made in September, and together they would move three of the "could" actions into the "yes" column.

Priority 1 · tax relief

Require the 79-E ordinance to state an affordability standard

A share of homes, an income level, and a covenant term. Requiring that a number exist is separable from agreeing on the number.

Priority 5 · in-lieu fee

State what the fee is paid in lieu of

Ask that the authority question go to the City Attorney before drafting. This is the plan's only new revenue for the Trust Fund.

Additional list

Move preservation into the priority tier

Protecting existing below market-rate homes is the cheapest lasting affordability the City can buy. It currently ranks below live/work units.

Whole table

Put a number and a baseline in every metrics cell

The column already exists and contains no figures. Adoption without them means no way to assess the plan in two years.

New action

Name Sherburne and the Kane land gift in the plan, and add an action to repeat them

Both are city commitments to permanently affordable housing and neither appears in the document. Adding them gives the plan a track record to point to — and adding a standing action to identify and convey further city-controlled sites gives it a way to produce the next ninety homes rather than waiting for another lawsuit to settle.

If you live here, this is the part that matters

September is the last real chance to change the text

After the hearings the plan goes to Council for adoption. Councillors and committee members read what residents send them, and a plan that no one comments on gets adopted as written. Three places to send a message:

The message is not opposition. It is this is good work, and one gap has to close before you adopt it. Pick whichever angle below fits you — they make different arguments on purpose.

Angle 1 · the standard

Thank the Council for ordering the plan and the staff for producing it. Ask that Priority 1 be amended so the 79-E ordinance must state an affordability share, an income level, and a covenant term. Tax relief is public money; it should buy something specific.

Angle 2 · the money

Note that the Below Market Rate Housing Trust Fund holds about $480,000 — roughly half of one Seacoast house — and was capitalised by a lawsuit settlement, not a revenue stream. Ask the Council to identify a recurring source before adopting a plan that relies on the fund.

Angle 3 · the numbers

The plan's Metrics column contains no figures and no baseline. Ask that every action carry a number and a starting point, so that in two years anyone can tell whether the plan worked.

Angle 4 · what already exists

Protecting below market-rate homes the city already has is cheaper than building new ones. Ask that preservation be moved from the additional list into the priority tier.

Angle 5 · credit and repetition

Sherburne School and the Kane land gift together represent roughly 170 permanently affordable homes, and neither is named in the plan. Ask that both be added, and that the plan include a standing action to identify further city-controlled sites.

Add one sentence of your own. What you pay in rent, what your commute costs you, why the people you work with cannot live here. Identical messages get counted once; a specific one gets read aloud. If you rent, say so — renters are roughly half of Portsmouth's households and almost none of the voices at these hearings.
That is the argument

Everything under it is below

The evidence layer: where the plan stands, the five requirements Progress Portsmouth put to the Housing Committee scored against the published text, what the metrics columns actually contain, and the limits of this analysis.

The evidence layer

How this was assessed

Everything below is drawn from two documents the City has published: the July 2026 draft narrative and the Housing Action Plan Table. No figure appears here that is not in one of them.

01 · Where the plan stands

Three decision points remain

The Housing Committee presented its recommendations to the City Council on July 13. Council referred the matter to the Planning Board. The September hearings are the main opportunity for residents to shape the text before it returns to Council.

JUL 13 · done
Council referral
Recommendations presented; referred to the Planning Board.
AUG 20 · now
Planning Board review
Land-use review of the draft.
AFTER · ahead
Council adoption
Master Plan update follows in roughly six months.

One document does most of the work here

The City's web page carries the nineteen actions in narrative form. The companion Housing Action Plan Table carries four columns the web page omits: Key Implementation Steps, Lead, Metrics, and Milestone. Almost everything below turns on the Metrics column, because that is where a plan either commits to an outcome or declines to.

02 · What the table shows

Three structural findings

The metrics columns contain no numbers

The Metrics and Milestone columns exist — the structure is right. What they contain are units of measurement rather than targets. "Units" is not a metric; a number of homes by a date is a metric. There is no baseline anywhere in the plan, so even a filled-in metric could not show change.

The complete Metrics column, all nineteen actions Projects · Zoning amendments to remove barriers · Amendments to allow conversions · Zoning district changes to permit small clustered housing · Identify amendments to Zoning Ordinance and Fee Schedule · Below market rate housing projects by nonprofit entities · Revise zoning map · Zoning Ordinance and Zoning Map amendments · Conforming lots · Units · Units funded · Programs created · Zoning Map amendments · Zoning Ordinance amendments · Units · Units · Units · Available Programs and Services · Adopted amendments to be consistent with RSA

Six of the nineteen milestones read as some version of "Amended Zoning Ordinance" or "Amended Zoning Map" — the milestone for amending the ordinance is an amended ordinance.

"Below market rate" is never defined

The phrase appears throughout the narrative and the table. No income band, no share of homes, no covenant term is named anywhere. The consequence for Priority 1 is specific: the City's largest discretionary housing subsidy would be adopted without stating what, if anything, a recipient must deliver in return.

This is a live choice rather than an oversight. The 2026 amendments to RSA 79-E broaden municipal discretion over the terms on which relief is granted. Portsmouth's own recent projects — West End Yards and Sage — were built at roughly 100–110% of area median income, not the 80% often assumed. Which standard applies is Portsmouth's decision, and declining to write it down is itself a decision.

The in-lieu fee has an unanswered question underneath it

Priority 5 establishes a fee paid "in place of on-site unit provision." A payment in lieu presupposes an obligation to be in lieu of — and the plan does not say what that obligation is or what authorises it. Three possibilities, with very different revenue consequences:

  • Tied to a voluntary density or height bonus — the fee is then optional and priced by the developer.
  • Tied to the workforce housing ordinance — which is a duty not to exclude and creates no set-aside to buy out of.
  • Tied to a mandatory set-aside — which raises a municipal authority question that belongs with the City Attorney before drafting.

This matters because Priority 5 is the plan's only new revenue mechanism for the Housing Trust Fund, and the Trust Fund is one of only two actions that can produce lasting affordability. It is raised here as a question, not asserted as a defect.

03 · Scorecard

Five requirements, as they stand

In July, Progress Portsmouth put five requirements to the Housing Committee co-chairs and Planning staff. Here is where each sits in the published text. Tap any row for detail.

1

Pair the tax relief with by-right zoning

NOT ADDRESSED AS ASKED

Tax relief lowers the cost of a project the zoning already permits. It does nothing for a project the zoning forbids. The ask was a narrow companion change on the same clock as the 79-E ordinance.

Priority 1 runs 0–9 months. The one discretionary residential change that would give it something to attach to — converting large single-family homes into multiple units — sits in the additional list at 1–2 years, with no dimensional relief and no use of the phrase "by right." The commercial conversion action moves fast, but that is now largely state-mandated.

The ADU experience is the relevant evidence and is not addressed anywhere in the draft: the rule change tripled applications and produced few homes, because permitting a use is not the same as making it pencil.

2

Put city land in the plan, and commit to initiating projects

NOT ADDRESSED

Across all nineteen actions, all Key Implementation Steps, and the full narrative, there is no action to inventory, dispose of, ground-lease, or contribute city-owned land, and no commitment to initiate any project on any site.

The verbs across the matrix are review, recommend, amend, identify, continue, track, launch. The single instance of "Allocate funds" appears under the Housing Trust Fund action, with no amount and no source.

Important correction to how this reads. The absence is in the plan, not in the City's record. Portsmouth has done land-based affordable housing twice in eighteen months — the Sherburne School award to the Portsmouth Housing Authority on city-owned land, and the Kane land gift in the Gateway Neighborhood Overlay District under the McIntyre settlement. Together those are roughly 170 permanently affordable homes. The finding is not that the City has failed to act; it is that the City's most effective housing work sits outside its housing plan, unnamed and unrepeatable.

Land cost is the binding constraint on permanently affordable housing everywhere, and especially in a small, land-capped city. Worth noting that these are largely Council and City Manager decisions rather than Planning Department ones.

3

Set measurable targets

STRUCTURE YES, NUMBERS NO

The columns are there. This is the easiest of the five to close, because nothing needs to be added to the table's shape — only filled in.

Without a baseline and a number, there is no way to tell whether the plan is working, and no way to defend it to Council or the public in two years.

4

Name the affordability standard

NOT ADDRESSED

"Below market rate" is used throughout and defined nowhere. Priority 1 carries no affordability condition; Priority 5 has no formula; the workforce housing action names a statutory compliance floor rather than a local standard.

The single most consequential text change available before adoption is one sentence in Priority 1 requiring the enabling ordinance to state a share, an income level, and a covenant term.

5

Bring renters — half the city — to the table

NOT ADDRESSED

No engagement action appears in the matrix. Most of the plan's desired outcomes concern rental housing, and renters are roughly half of Portsmouth's households.

The participation section of the plan's own page reads, live as of August 10, 2026:

[[LINK or embed a comment card Microsoft Form]]City of Portsmouth · Housing Action Plan page · verified Aug 10, 2026

The comment mechanism has not yet been built. Stated as an observation, not a complaint — it is straightforward to fix before September.

04 · Credit where due

What the draft got right

An analysis that lists only gaps is not usable. Four things deserve to survive to adoption intact.

  • The civic origin is acknowledged in the text. The narrative states that residents and community advocates produced research, analytical tools, and a proposed framework of actions, that this work informed the Council's February 2026 direction, and that much of it is reflected in the actions that follow. This was asked for and granted.
  • The tracks are visibly split. The 79-E package moves under the City's own authority at 0–9 months; the comprehensive rezone sits with the consultant at 1–2 years. The tax-relief package is not held hostage to the Master Plan.
  • The matrix format is the right instrument. Lead, Timeframe, Metrics and Milestone is what turns direction into implementation. The structure is sound; only the content is thin.
  • Preservation and the workforce ordinance are on the list at all. Both belong there. The argument is about ranking and framing, not inclusion.

One framing point worth making on the record

The workforce housing action is a compliance item, not a production item. RSA 674:58–61 establishes a duty not to exclude workforce housing; satisfying it produces no homes. If the plan is adopted without saying so, the workforce housing question can be treated as handled when it has not been addressed.