Unanimous Support by Senate Ways and Means Committee for Proposal to Encourage More Historic Rehabilitation Activity for Housing: First Positive Step in Legislative Process

January 29, 2025: Today the New Hampshire Senate Ways and Means Committee voted unanimously in favor of a new legislative proposal to aid the housing crisis by expanding available resources in a proven community development program. Senate Bill 158, which would raise the state investment tax credit cap from $5 million annually to $10 million annually effective July 1, 2025, had its first hearing in the State House process today. The program is administered by the New Hampshire Community Development Finance Authority (CDFA).

Speakers from communities across New Hampshire attended the January 29th Senate Ways and Means Committee hearing in Concord to voice their support for the legislation and the positive impacts it would have on the state’s community economic development priorities. Supporters included non-profit and for-profit housing developers, New Hampshire businesses and nonprofits advancing community-based projects. Testimony at today’s public hearing emphasized how the additional tax credits could unlock new redevelopment opportunities, provide critical resources to incentivize and support housing projects and achieve local priorities using public-private partnerships.

The bill’s prime sponsor is Senator Daniel Innis. Other sponsors include Senator Ruth Ward, Senator Rebecca Perkins Kwoka, Senator David Watters, Senator Timothy Lang, Senator Cindy Rosenwald, Senator Donovan Fenton and Representative Maureen Mooney. Senator Lang is the Chair of the Ways and Means Committee, the bill’s first stop in the legislative process. The Committee voted 5 – 0 ought to pass during its Executive Session today. Senate Bill 158 will be placed on the consent calendar for the full Senate’s consideration at an upcoming session.

Arron Sturgis, owner of Preservation Timber Framing, offered the Committee that increasing the tax credit cap to $10 million creates new opportunities to redevelop existing properties into the housing we need and become an important tool for creating good paying jobs that will keep a young and growing workforce in our communities.

Eric Chinburg, President of Chinburg Properties, spoke of his 30+ years redeveloping old mills and other buildings and offered examples of properties that will remain vacant or under-utilized if additional incentives aren’t available.

Harrison Kanzler, Executive Director of AHEAD, a nonprofit affordable housing developer in the North County, offered the following: “We have to navigate a complex landscape of funding sources and regulatory barriers to develop the housing our communities need. CDFA’s Tax Credit Program is easy-to-use, deeply impactful for the North Country and a phenomenal asset to the State of New Hampshire. In the rural North County, we are not able to build large-scale housing developments. There are so many opportunities to revitalize our downtowns if we have the programs and resources to support those efforts, like CDFA’s Tax Credit Program. The program also allows local employers to support a fully vetted housing project and be a part of the solution to our local housing challenges.”

Dan Enxing, owner of Volvo Cars Exeter is long-time business donor to CDFA’s Tax Credit Program and has supported critical housing and community economic development initiatives through the program for more than a decade. During today’s hearing, Mr. Enxing emphasized the impact the program has had in New Hampshire communities and the opportunity to create more housing and spur job growth by increasing the program cap to $10 million.

“New Hampshire has a significant need for housing, which is compounded by increasing median sales prices, high rental prices, low vacancy rates, and more individuals experiencing homelessness,” stated Katherine Easterly Martey, Executive Director, CDFA. “CDFA’s Tax Credit Program is a proven and effective tool for providing New Hampshire communities the resources necessary to solve complex challenges, including increasing access to quality, affordable housing. Increasing the resources available to communities to address New Hampshire’s housing challenges – while incentivizing public-private partnerships to accomplish our collective goals – can create long-term, positive impacts and help grow economic activity.”

Jennifer Goodman, executive director of the N.H. Preservation Alliance, noted that the Preservation Alliance and allied organizations had considered other ways to bring more high-impact rehabilitation investment to New Hampshire, and working through CDFA’s program seems by far the most efficient and impactful. CDFA has a proven track record of successful projects, of smart investments that leverage substantial additional resources, of demand by good projects outstripping available credits, and of small and large businesses eager to participate in the program. She also noted that labor-intensive historic preservation projects that could use these credits support high-wage jobs, conserve energy and resources, keep more revenue circulating locally than new construction, and benefit a broad range of communities.

Here's an overview from the Manchester Ink Link: https://manchester.inklink.news/nh-cdfa-tax-credit-hike-would-boost-housing-workforce-supporters-say/

Questions? Suggestions? Contact Jennifer Goodman, N.H. Preservation Alliance at jg@nhpreservation.org.