State Senate
FOR IMMEDIATE RELEASE
Wednesday, May 28, 2008
Contact: Senator Betsi DeVries (603) 271-2104
COMMITTEE REACHES COMPROMISE ON AFFORDABLE HOUSING
CONCORD - A committee of House and Senate members reached a tentative agreement today on legislation designed to help certain agencies that provide affordable housing in New Hampshire.
The legislation would require assessors to consider the actual income potential -- not market value -- for affordable housing developed using federal tax credits. The legislation would help organizations such as Families in Transition that provide subsidized housing for clients in Manchester and Concord in properties developed using federal tax credits.
"This is a small step to help the non-profits and the developers that want to address a critical need for affordable workforce housing in this state. We're not giving them a tax break; they still have to pay their fair share. But this way the property tax bill is connected to the actual income generated by a property and not a hypothetical market value," said Senator Maggie Hassan (D-Exeter).
All the properties involved in the federal Low Income Housing Tax Credit program have a deed restriction that ensures rents remain permanently affordable.
"The Low Income Housing Tax Credit program is our most successful funding partnership in the state and it is essential that we keep private dollars flowing into the development of affordable workforce housing. With the passage of this bill, we will have a stable, fair valuation process and assure continued investor interest in building these properties," said Senator Betsi DeVries (D-Manchester) who sponsored the legislation.
The legislation was originally contained in Senate Bill 199, but was later added to House Bill 1442. The conference committee today agreed to the affordable housing provisions as part of HB1442. The committee also added language calling on the Commissioner in the Department of Revenue Administration to collect information on the number of properties involved with the federal tax credit program and their assessed values and to report that information annually.
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