Laconia, N.H. – As New Hampshire continues to grapple with a growing housing crisis, the city of Laconia is emerging as a leader in promoting accessory dwelling units (ADUs), making it easier than ever for homeowners and developers to create more housing options on existing properties.

On June 4, the city hosted an informational session at the downtown library, attracting a group of about 20 residents, developers, and housing advocates eager to learn how new legislation and local initiatives are making ADU construction more accessible and practical.

Joia Hughes, Laconia’s economic and housing development director, who joined the city last fall, has made it her mission to raise awareness about housing development tools that could help relieve local pressure.

“I was tasked to educate the community on different opportunities that might be available to lessen the burden of the housing crisis in our area,” Hughes said.

ADUs — sometimes known as “in-law apartments” — are independent living units built on the same lot as a single-family home. They provide residents with their own sleeping, eating, cooking, and sanitation facilities while maintaining the appearance of a single-family home.

According to Laconia’s municipal zoning ordinance, only one ADU is permitted per owner-occupied single-family dwelling lot, and they cannot be used as short-term rentals. Despite their independence, ADUs must maintain the overall single-family character of the property and are not classified as duplexes.

House Bill 577 Expands ADU Flexibility Statewide

Fueling the momentum in Laconia and other municipalities is House Bill 577, a proposed update to the state's definition and regulations for ADUs. The bill would:

• Expand “by right” uses to include detached ADUs,
• Increase the maximum square footage allowed for these units, and
• Allow ADUs to be built simultaneously with primary residences, a key provision not previously permitted.

HB 577 is currently headed to the desk of Governor Kelly Ayotte, where it is expected to receive serious consideration given the state’s urgent need for more housing.

Industry Applauds Laconia’s Leadership

Speaking at the session, Matt Mayberry, CEO of the New Hampshire Home Builders Association, praised Laconia’s proactive approach.

“I crafted the language, so I know it well,” Mayberry said of HB 577.
“Laconia is amazing — they’re on the leading edge.”

Mayberry and other housing advocates believe that loosening regulations around ADUs can help increase housing inventory, reduce strain on renters, and provide flexible living arrangements for multigenerational families or people looking to age in place.

Laconia’s efforts also align with a broader push at the state level to empower homeowners and ease municipal restrictions that may hinder affordable housing development.

Originally reported by NH Business Review Staff in NHBR.