Committee backs bill letting military lease state property to pursue housing partnerships, create property fund

The House State‑Federal Relations and Veterans Affairs Committee voted unanimously to report Senate Bill 492 as amended after a wide-ranging hearing on whether the Department of Military Affairs and Veterans Services should be able to license or lease department property for housing and other uses.

Senator David Waters, the prime sponsor, told the committee the bill is enabling legislation to allow the department to pursue partnerships — for example converting existing billeting or dormitories at armories into long‑term housing or arranging a private developer to build on state‑held parcels. The bill clarifies local property‑tax treatment for leased property and establishes a Department of Military Affairs & Veterans Services Property Fund to receive leasing income and related federal or private contributions.

Major General David Michalaitis, the Adjutant General, said the department is not a property manager and would prefer private partners for development and management; he recommended a non‑lapsing fund to sustain infrastructure and maintenance. He and witnesses described a focus on junior enlisted access (for example E‑5 and below) and cautioned that many former base parcels (notably Pease) have PFAS and other constraints that limit where shovel‑ready construction is feasible.

Committee members asked about implementation details: who would be eligible, how rental rates would relate to a service member’s Basic Allowance for Housing (BAH), whether housing would be year‑round or temporary billeting, and whether federal personnel on temporary assignment would be eligible. Senator Waters and the Adjutant General said the aim is primarily long‑term rental housing for lower‑rank enlisted airmen and soldiers, with rental rates likely tied to BAH levels. The fiscal note in the record projects a possible FY2027 general‑fund need of approximately $105,000 if administration requires a dedicated staff position, but sponsors said any staffing would be considered in the next biennium budget.

In executive session the committee adopted amendment 1443h to change the bill’s effective date to 60 days after passage to give the department time to establish the fund and administrative processes; the amendment and the final OTPA motion passed 13‑0. The committee kept the bill on the regular calendar (not consent) because it was amended.

Next steps: the bill will proceed to the House calendar as OTPA; sponsors indicated companion language in the Housing Committee (SB490) will be coordinated where appropriate to target projects such as Pease and Great Bay Community College partnerships.