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Recent New Hampshire Legislation Extends Deadlines to Achieve Vested Rights for Approved Real Estate Projects


In New Hampshire, once a project receives local site plan and/or subdivision approval the project is protected against adverse changes in local zoning and land use ordinances provided that construction is both started and completed within certain specified deadlines. Historically, RSA c. 674:39 provided that approved projects are “vested” against future changes in most local land use regulations provided that “active and substantial development or building” begins within 12 months from date of final approval and become permanently vested provided the developer “substantially completes” the project within four (4) years of final approval. The statute expressly authorizes local planning boards to specify in their approvals what level of construction constitutes both “active and substantial development” and “substantial completion.” This summer, the New Hampshire legislature passed Senate Bill 144 which extended the 12 month vesting deadline to 24 months and the 4 year vesting deadline to 5 years. The Statute also provides that the 24 month deadline may be extended by the planning board for good cause shown and also provides that if a planning board does not specify by regulation or as a condition of the approval what constitutes “active and substantial development or building” then the project is entitled to the full 5-year exemption irrespective of when construction begins. Proper coordination of when an approval becomes final coupled with these extended statutory vesting deadlines can permanently insulate an approved project from changes in land use regulations and effectively protect the significant investment required to obtain regulatory approvals and entitlements.