NHHFA Approves $12.5 Million for New Developments

Exeter is one of three towns receiving part of a $12.5 million grant for the construction of new multi-family rental developments. Photo: Town of Exeter

The NH Housing Finance Authority (NHHFA) in Manchester approved $12.5 million for the construction of new multi-family rental developments in Bristol, Exeter and Jaffrey, as well as for supportive housing units and the refinancing of three existing developments. With additional funding of $25.5 million from other sources, these developments reflect a public-private investment of $38 million in multi-family housing in the state, supporting the retention or creation of more than 300 construction-related jobs.

Funding for three supportive housing projects will help renovate a former Manchester department store into transitional recovery housing for individuals with substance use disorder; create a permanent cold weather shelter in Concord; and finance housing in Lebanon focused on serving those who are chronically homeless. NHHFA also approved funding to refinance existing developments in Derry, Goffstown and Winchester that will extend the length of their rental affordability and improve the units.

The four new construction developments reflect an investment made through the federal Low Income Housing Tax Credit Program (LIHTC), an incentive program for private developers and investors. As the state’s LIHTC administrator, NHHFA evaluates the developers’ proposals and allocates the tax credits based on the percentage of units designated for low and moderate income families. Developers finance project construction by selling their tax credits to investors, who in turn receive the benefit over a 10-year period.

“As an example of how these federal housing tax credits benefit the state, $600,000 in tax credit funding for the Newfound River Apartments development [in Bristol] will generate $5.8 million in private equity investment,” says Dean Christon, executive director of NHHFA. “The housing tax credits leverage a public-private investment to create and preserve affordable rental housing construction, and boost economic development and job creation in New Hampshire.”

NHHFA released its annual Residential Rental Cost Survey, which found that the state’s tight rental market continues to drive vacancy rates down and rents up. The next NHHFA Housing Market Update report will be available in August.