Federal Tax Credits to Create 188 Housing Units in New Hampshire
November 21, 2016
NEW UNITS WILL BE BUILT IN BETHLEHEM, BRISTOL, EXETER, GILFORD, AND LONDONDERRY.
BEDFORD, N.H. (November 21, 2016) – Six housing initiatives throughout New Hampshire were recently awarded Low Income Housing Tax Credits (LIHTC), a key federal funding source for creating and preserving affordable housing. The tax credits will generate almost $29 million in private investor contributions to build 188 total apartments in the state, with 170 of them being affordable.
The tax credits are awarded over a ten year period. Investors then purchase the credits and become limited partners in the housing developments. The end result is high quality affordable housing built with significant private capital. Tax credit developments 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 as well as jobs created in local businesses to serve the households living in the properties.
The six properties that received tax credits were Bethlehem Workforce Housing in Bethlehem, Newfound River Apartments in Bristol, Three Meeting Place and Homestead House at the Meeting Place in Exeter, Gilford Village Knolls 3 in Gilford, and Townhomes at Whittemore Place – Phase II in Londonderry.
• Bethlehem Workforce Housing’s proposal is for 28 townhouse style units in Bethlehem, NH. The units are non-age restricted. Of the 28 units, 25 will be affordable. The property will be developed by Affordable Housing, Education and Development (AHEAD), based in Littleton, NH.
• Newfound River Apartments will consist of two buildings and 32 units of mixed-income, non-age restricted housing along the shores of the Newfound River in Bristol, NH. Of the 32 units, 29 will be affordable. The property will be developed by Kevin Lacasse of Newfound River Apartments, LLC.
• Three Meeting Place in Exeter will bring a 43 unit, non-age restricted property to the town. This initiative is part of a development that includes three other buildings on the site. Three Meeting Place will add one more building similar to those already built. Of the 43 units, 26 will be affordable. The property will be developed by Avesta Housing Development Corporation of Portland, Maine.
• Homestead House at the Meeting Place will bring a 28 unit, non-age restricted property to Exeter. The site is located in the same area as the Three Meeting Place property. Of the 28 units, 26 will be affordable. The property will be developed by Felder Kuehl Properties of Bristol, NH.
• Gilford Village Knolls 3 will bring 24 one-bedroom units of senior housing to downtown Gilford. Of the 24 units, 22 will be affordable. Laconia Area Community Land Trust will develop the property.
• Townhomes at Whittemore Place – Phase II will provide a 33 unit, non-age restricted property in Londonderry. Of the 33 units, 30 will be affordable. NeighborWorks Southern New Hampshire will develop the property.
The median monthly rental cost for two-bedroom units in New Hampshire has consistently increased, including a 12 percent spike in the last three years. Half of all households living in rental units earn less than $40,800 per year, meaning they can’t afford almost 70 percent of market rate units in New Hampshire. This dynamic, coupled with the low rental vacancy rate of 1.5 percent, creates an extreme demand for affordable units that isn’t met by current rental housing stock. The impact is felt by low- to moderate-income renters who pay a greater percent of their income on housing costs.
“Building more apartments is vital to growing New Hampshire’s economy,” said Dean Christon, executive director of New Hampshire Housing. “Given New Hampshire’s low unemployment rate, demand for labor can only be met if workers have an affordable place to live. Low Income Housing Tax Credits provide a unique and effective method of helping address the housing challenge of our growing workforce and aging population.”
New Hampshire Housing is the administrator of the LIHTC funding in the state and is responsible for evaluating developments and deciding funding amounts. Details about the LIHTC program can be found at https://www.nhhfa.org/low-income-housing-tax-credits.