Proposed change to rural land use code could create 'modest' housing opportunities, city says

The city is looking to expand opportunities for residential development by updating the land development code in Keene’s rural district.

City councilors and planning board members are considering an ordinance that would reduce the minimum lot size for parcels within the rural district from 5 acres to 2, which Senior City Planner Mari Bruner said could create “modest” opportunities for market rate single-family homes.

For example, by reducing the minimum lot size, Brunner said someone with a 9-acre parcel could potentially subdivide the property into four lots, which could result in four homes.

The rural district is Keene’s lowest density residential zone, generally outside the residential core of the city, where municipal water and sewer services are not as available, according to documents from an Aug. 8 joint meeting of the Planning Board and City Council’s Planning, Licenses and Development Committee.

The rural district covers more than 14,000 acres divided into about 1,118 parcels of land, according to the agenda for that meeting.

In an interview Monday, Brunner added that the minimum lot size for parcels in the rural district had been 2 acres prior to the change to 5 acres in 1977, when the zone had then been known as the agricultural district.

Kendall Lane, former Keene mayor, said at the joint planning board-PLD committee meeting that the initial change had been made to stunt the Elm City’s rapidly expanding population, according to draft meeting minutes. Keene’s population grew by 12 percent between 1950 and 1960, and 16 percent between 1960 and 1970, he said.

Lane, who had been studying the city’s population growth with Keene Housing Authority in 1978, said city officials were concerned about the strain this influx of residents could have on local schools and water and sewer systems.

After the lot size reductions took effect, Lane added that Keene’s population growth fell to 4 percent between 1970 and 1980, and further to 2 percent in the 2000s.

With Granite State housing growing more and more scarce in recent years, Brunner said it’s time to amend the land codes once again.

“At the time, the change to 5 acres was meant to control and slow growth in the city,” Brunner said. “But now we’re really concerned about the fact that people are struggling to find housing... This is just one piece of a much larger puzzle to address the housing [crisis.]”

According to the NH Fiscal Policy Institute, a shortage of housing in the state has dramatically hiked up prices of single-family homes in recent years. From 2017 to 2022, the median price of a single-family home rose from $244,900 to $440,000, about an 80 percent increase.

The median sale price for single-family homes in Cheshire County is around $330,000, according to an aggregation of online real estate listings.

The proposed changes to rural district land usage are the latest effort from city officials to expand residential development. A proposal in June to amend city codes would allow residential units above commercial buildings near downtown, and a major overhaul to codes last year aimed to simplify development for businesses and housing.

During public comments on the latest proposal, Thomas Lacey of Keene told the joint committee meeting that he understands the need for more housing, but thinks the proposal could raise taxes in the rural district.

He said he worries taxes in the rural zone will go up because properties between 4 and 10 acres will be identified as areas for potential development and will be taxed as such.

The ordinance, which went before the City Council on July 21 for a first reading, will head back to the council for a public hearing, expected Sept. 1, Brunner said. Afterward, she said the ordinance would return to the PLD committee for a final recommendation before a full vote by City Council.

If adopted, the ordinance would go into effect as soon as it’s signed and filed with the city clerk’s office, Brunner said.

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Hunter Oberst can be reached at 603-355-8585, or hoberst@keenesentinel.com.

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