While traditional bank financing may be the starting point, there are numerous ways to fund commercial construction projects, both new buildings and renovations, depending on their location, design, type and end use. Below are some key state, municipal and federal programs that developers should look into for financing construction projects.
Historic Properties
- A 20 percent tax credit for historic properties that are certified as historic structures.
- A 10 percent tax credit for historic properties put in use before 1936 that are not certified as historic structures and are rehabilitated for non-residential uses.
(For more information about these two federal programs, visit the National Park Service at www.nps.gov/tps/tax-inventives.htm)
Focused Revitalization Areas
- Community Revitalization Tax Program:
This program, established under state law RSA 79-E, encourages towns to invest in their downtowns by allowing them to offer tax incentives for businesses to rehabilitate underused commercial buildings downtown.
For more information, visit nhpreservation.org
- Economic Revitalization Zones (ERZ):
These zones are established by towns to stimulate economic redevelopment and increase tax revenue. Employers can receive tax credits for relocating, expanding or building new space in one of these zones.
For a list of ERZ zones as of March 2013, and for more information, visit nheconomy.com/expand-to-nh/incentives.aspx#credit-programs
- New Markets Tax Credits:
This federal tax credit program leverages private investment and offers tax credits for developments in low-income communities.
For more information, visit http://cdfifund.gov/what_we_do/programs.asp
Affordable Housing Units
Developers building, renovating or rehabbing buildings offering affordable housing that meet certain income limits can access city, state and federal loans and tax-credits. Contact The NH Housing Finance Authority and visit www.nhhfa.org to learn more.
For a list of U.S. Department of Housing and Urban Development grants, visit http://portal.hud.gov/hudportal/HUD?src=/program_offices/administration/grants/fundsavail.
The Community Development Finance Authority also offers grants to develop affordable housing and stimulate economic development (nhcdfa.org/block-grants/).
Lead Removal
The Lead Hazard Control Program offered loans to help property owners remove lead during renovations. Visit the NH Housing Finance Authority at nhhfa.org/rental-housing-landlords-lead-hazard-reduction.cfm to learn more and connect with financial resources for projects involving removal of lead paint.
Asbestos
The U.S. EPA offers Brownfields Grants to help pay for cleaning up contaminated properties, including those with asbestos contamination. Visit http://www.epa.gov/brownfields/grant_info/ and http://www.epa.gov/region1/brownfields/index.html to learn more. The NH Department of Environmental Services Brownfields program can also provide information (http://des.nh.gov/organization/divisions/waste/hwrb/sss/brownfields/).
Green Building
New Hampshire Utilities’ Business Energy Efficiency Program: Offers numerous programs including rebates for new lighting, control systems and other upgrades.
For more information on funding green building projects, visit www.epa.gov/greenbuilding/tools/funding.htm. For financing energy efficiency projects, visit http://www.sba.gov/content/financing-energy-efficiency-projects
Current Issue - May 2024