Financing For 1,000 Units Of Rental Housing Approved By NH Housing Board In FY21

By InDepth NH

BEDFORD, NH — To help meet the critical need to build and preserve affordable rental housing for our state’s workforce and other residents, funding for 16 affordable multi-family rental housing developments was approved by the New Hampshire Housing Board of Directors during the fiscal year ending June 30, 2021 (FY21).

The allocation of Low-Income Housing Tax Credits (LIHTC) and other federal and state funding to these projects will produce or preserve almost 1,000 units of affordable rental housing in the state’s communities.

LIHTC-funded housing accounts for about 95% of publicly funded workforce housing produced in New Hampshire. This federal program is an important public/private financing tool that encourages developers and investors to create affordable multi-family housing for low- and moderate-income families by using tax credits to leverage private equity investment in these properties. Over 25 years, LIHTC financing has added nearly $1 billion of investment in New Hampshire. The housing credit program leverages ten times the amount awarded: in this recent round, $5 million in LIHTC awards will yield nearly $50 million in private capital to develop affordable housing in the state.

Other funding sources that New Hampshire Housing administers for the construction and preservation of affordable multi-family housing include the federal HOME program and Housing Trust Fund, the state Affordable Housing Fund, and tax-exempt bond financing. In FY21, more than $21 million in tax-exempt bond funding was allocated.

The importance of tax credits to create affordable housing is underscored by private developer David Lemieux, whose Apple Ridge Apartments in Rochester are being constructed in three phases using LIHTC funds. There will be 102 apartments when completed.

“In 2019, we developed and built much needed affordable units in Phase I,” Lemieux, principal at McIntosh Development, noted. “New Hampshire Housing provided low-rate construction financing for the project, as well as permanent loan financing. Now we are heading into phase II, and the LIHTC program is again making this possible.”

“The production of new housing helps meet an urgent need in the state, and supports the state’s thriving economic development climate,” noted Dean Christon, executive director of New Hampshire Housing. “The state and federal funding sources that New Hampshire Housing provides are essential financing tools for public and private developers to create and renovate affordable rental housing throughout the state.”

New Hampshire Housing manages the financing of new multi-family rental unit construction, and refinances and recapitalizes existing properties to preserve affordable housing units in the state. Our programs address affordable and workforce housing needs, as well as supportive housing for vulnerable and underserved populations including veterans, persons with substance use disorders, the formerly incarcerated, and individuals with intellectual and developmental disabilities.

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NHHFA Reports, Studies & Data

• 2021 New Hampshire Residential Rental Cost Survey Report
• Housing Market Reports
• NHHFA FY20 Annual Report
• New Hampshire housing market economic and demographic data

/About New Hampshire Housing: As a self-supporting public corporation, New Hampshire Housing Finance Authority promotes, finances and supports affordable housing. NHHFA operates rental and homeownership programs designed to assist low- and moderate-income persons with obtaining affordable housing. We have helped more than 50,000 families purchase their own homes and been instrumental in financing the creation of more than 15,000 multi-family housing units. NewHampshireHousing.org | #NHHFAHousing | @NewHampshireHousing | @NHHFA

This story was originally published by InDepth NH.