Federal Tax Credits to Create, Preserve Affordable Housing across the State
Program administered by New Hampshire Housing will create 170 units of
affordable housing, preserve nearly 100 more
BEDFORD, N.H. – December 03, 2015 – (RealEstateRama) — Six developers across the state were recently awarded Low Income Housing Tax Credits (LIHTC), a key federal funding source for creating and preserving affordable housing. The tax credits will provide almost $31 million in upfront cash equity to be used for building 170 affordable apartments and preserving 100 more.
The tax credits are awarded over a ten year period. Private businesses then purchase the credits and become limited partners in the housing developments. The end result is high quality affordable housing with significant private investment. Tax credit projects are also known for creating jobs, both immediately in the form of construction-related jobs and over the long-term in the form of staff to maintain and manage the new properties.
The six projects that received tax credits were Chandler Place in Plaistow, The Meadows at Grapevine Run in Hampton Falls, Franklin Mill in Franklin, Renaissance RENEW in Manchester, Kensington Lane in Bedford, and Bradley Commons in Dover.
Chandler Place in Plaistow will create 25 units of senior housing within walking distance of local grocery stores, banks, and other stores and amenities. It is the first part of a proposed two-phase project by Steven Lewis, Inc., which is based in Atkinson.
The Meadows at Grapevine Run will be built in Hampton Falls. The development, which is sponsored by Avesta Housing Development Corporation from Portland, Maine, will offer 24 one-bedroom apartments for seniors.
Franklin Mill, which is currently unused, will be rehabilitated by CATCH, which is based in Concord. The mill was built at the turn of the 20th century. When the project is complete, it will host 45 family apartments.
Renaissance RENEW will rehabilitate nearly 100 rental units owned by NeighborWorks Southern New Hampshire, which is based in Manchester. The properties will undergo capital improvements to improve energy efficiency and extend the useful life of the housing units. All of the properties are in the same neighborhood and play an important role in stabilizing and revitalizing downtown while providing affordable housing opportunities in Manchester.
Kensington Lane, a 41-unit family project in Bedford, will be developed by Dakota Partners, Inc. from Waltham, Massachusetts. The development will be a single garden-style building and will include a play area for children.
Bradley Commons in Dover, which is sponsored by The Housing Partnership from Portsmouth, will demolish a former church and replace it with a four-story mixed use building. The ground floor will have commercial space and the upper floors will be family housing. A second phase on the same site is planned for the future.
According to Housing Needs in New Hampshire, a study commissioned by New Hampshire Housing and performed by the Center for Public Policy Studies and Applied Economic Research, the state’s rental market has grown progressively less affordable. With low vacancy rates and a lack of housing construction to meet demand, renters have fewer options and are paying higher rents. Programs like the housing tax credit are one resource that developers can use to build more housing to meet demand and create more affordable locations for the state’s workforce to live.
“Housing tax credits are one of the few remaining federal programs that make it possible for developers to create new rental housing at affordable rates for consumers,” said Dean Christon, Executive Director of New Hampshire Housing. “It’s also becoming an increasingly important way for us to preserve existing affordable housing that may be in need of improvements. These credits are not only a vital resource that allows us to provide housing, but they also generate investment in our state and spur job growth. The effects of these projects aren’t just immediate—they last for years to come.”
New Hampshire Housing is the sole administrator of LIHTC funding in the state and is responsible for evaluating projects and deciding funding amounts. Details about the LIHTC program can be found at http://www.nhhfa.org/rental-housing-lihtc.cfm.
About New Hampshire Housing Finance Authority: New Hampshire Housing Finance Authority is a self-supporting public benefit corporation. The Authority operates a number of rental and homeownership programs designed to assist low- and moderate-income persons with obtaining affordable housing. Since its inception, New Hampshire Housing has helped more than 41,000 families purchase their own homes and has been instrumental in financing the creation of more than 14,500 multi-family housing units. More information about its programs can be found on the agency’s websites at www.nhhfa.org and www.GoNewHampshireHousing.com.
contact Jane Law
Phone: (603) 310-9255