Federal Tax Credits to Create, Preserve Affordable Housing across the State

construction - pixabaySix 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 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.

Affordable Housing Development in Bow Receives Over $400,000

New Hampshire Housing approves funding for expansion of Bow Highlands

New Hampshire Housing’s Board of Directors recently approved over $400,000 in federal HOME funding for CATCH Neighborhood Housing to construct an additional phase of their Bow Highlands affordable housing development. The new construction will add 16 additional units of family housing to the development’s existing 20 units.

In addition to this latest round of funding, the newest phase of Bow Highlands will leverage private investment for affordable housing construction through the sale of federal Housing Tax Credits. The Housing Tax Credit program has a proven track record of creating effective public-private partnerships, boosting economic activity by creating jobs, and reducing the need for direct public subsidies.

“The approval of federal HOME funds by New Hampshire Housing is vital for the expansion of the Bow Highlands affordable rental community,” said Rosemary Heard, President of CATCH Neighborhood Housing.  “These beautiful apartments have provided a much-needed addition to the range of housing opportunities in Bow, and this allocation means that even more families will be able to find homes they can afford in Bow.”

“With low vacancy rates and high rents, the current rental housing market can be challenging for working families,” said Dean Christon, Executive Director of New Hampshire Housing. “The expansion of Bow Highlands means more families in the area around Concord will have access to safe and affordable housing.”

CATCH Neighborhood Housing Receives Funding for Second Phase of Bow Highlands

New Hampshire Housing approves tax credits to expand affordable housing development

New Hampshire Housing’s Board of Directors recently approved Low Income Housing Tax Credit (LIHTC) funding for the expansion of Bow Highlands, a CATCH Neighborhood Housing development that offers affordable rents for individuals and families. Sixteen townhouse style apartments will be added to the development as a result of the funding.

The LIHTC program grants federal income tax credits over a 10 year period to eligible projects. The credits are then purchased by private investors, who become limited partners in the projects and reduce the need for public subsidies. LIHTC projects have a track record of boosting local economies as they generate construction-related jobs, promote local investment, and help create housing that is affordable for local workforces.

“We are so thrilled to have New Hampshire Housing’s support for the expansion of affordable rental housing through Bow Highlands’ second phase,” said Rosemary Heard, President of CATCH. “The first phase of these beautiful apartments has provided a much-needed addition to the range of local housing options, and thanks to New Hampshire Housing’s tax credit allocation, the second phase will allow even more families to find homes they can afford.”

“We’re pleased to support CATCH’s efforts to expand the availability of affordable housing in Bow,” said Dean Christon, Executive Director of New Hampshire Housing. “Through these housing tax credits, they will be able to build something that not just houses people, but also creates local jobs and positively impacts the community.”

CATCH Neighborhood Housing is a 501(c)3, non-profit organization offering a full spectrum of housing and education services in Merrimack County, New Hampshire. It prides itself on creating innovative housing solutions for low- or moderate- income individuals and families.

Low Income Housing Tax Credit Brings Housing, Jobs to New Hampshire

More than 240 units of affordable housing to be added to local communities

New Hampshire Housing’s Board of Directors recently approved the 2014 Low Income Housing Tax Credit (LIHTC) funding for affordable housing developments across the state. In total, five communities will add more than 240 units of affordable rental housing to their existing housing stock.

The five projects that received LIHTC funds were Mast Landing in Dover, Quail Hollow in Lebanon, the Townhomes at Whittemore Place in Londonderry, River’s Edge in Laconia, and One Meeting Place in Exeter.

  • Mast Landing in Dover will create 32 units of affordable congregate care housing for seniors. The project will be developed by the Housing Initiatives of New England Corporation.
  • The Quail Hollow Senior Living Community in Lebanon, which currently has a combination of 170 rental and The Quail Hollow Senior Living Community in Lebanon, which currently has a combination of 170 rental and “for sale” units, will add an additional 62 units of one- and two-bedroom housing. This new phase will also offer supportive services for residents, and it will be developed by Quail Hollow Townhomes, LLC.
  • Townhomes at Whittemore Place in Londonderry will be a two phase development, with the first phase creating 38 townhouse style units for individuals and families. The site will offer green space, a community room, and a common area for gardening. NeighborWorks Southern New Hampshire will develop the project.
  • River’s Edge in downtown Laconia will demolish an unused warehouse and replace it with 32 units of one and two-bedroom apartments. The project will be developed by Laconia Area Community Land Trust.
  • One Meeting Place in Exeter will add 39 units of non-age restricted housing to the existing Meeting Place development, which offers housing for both families and seniors. Berry Park Housing Corporation/AVESTA will develop and manage the project.

The LIHTC program grants federal income tax credits over a 10 year period to eligible projects. The credits are then purchased by private investors, who become limited partners in the projects and reduce the need for public subsidies. While the credits amount to approximately $2.8 million each year, they are leveraged to generate $25 million in cash equity for project funding. LIHTC projects also have a track record of boosting local economies as they generate construction-related jobs and help create housing that is affordable for local workforces.

“LIHTC funding keeps investment dollars in our local communities while strengthening area housing markets,” said Dean Christon, Executive Director of New Hampshire Housing Finance Authority. “The projects supported by this funding will create jobs, boost public-private partnerships, and ensure that working families and seniors have an affordable place to call home.”

Housing Tax Credit Program Report

A comprehensive study recently conducted by the National Association of Homebuilders (NAHB), and commissioned by the New Hampshire Housing, reveals the far-reaching positive economic impact of the Low Income Housing Tax Credit Program (LIHTC) for New Hampshire.

The LIHTC Program, which is administered by New Hampshire Housing in the Granite State, is used to fund affordable rental housing.  It operates by offering a dollar-for-dollar tax credit which is attractive to investors and generates private investment in the development of affordable housing projects.

According to the study, the estimated one-year economic impact of building 202 new tax credit units in New Hampshire include:

However, this positive economic activity continues beyond the one-year mark as residents of these affordable housing developments continue to spend money within the state. Throughout the course of day-to-day life, residents of affordable housing developments purchase groceries and other products locally; they support local services such as auto repair shops, health care providers, hair stylists and restaurants; and they pay local and state taxes and fees. The NAHB report says that such projects will generate $8 million in dollars and support 110 jobs annually each subsequent year!

Thus, the housing tax credit program clearly impacts our communities beyond the obvious benefits for the construction and real estate industries.

To learn more about the housing tax credit program and to view the report, click: http://www.nhhfa.org/rl_LIHTCImpact.cfm.