February 07, 2012
New Hampshire Housing Finance Authority
New Hampshire Housing Finance Authority today announced the release of a comprehensive report on the impact of housing tax credits to New Hampshire communities.
“The Economic Impact of the Housing Tax Credit Program in New Hampshire – Income, Jobs and Taxes Generated,” is a 21-page report commissioned by New Hampshire Housing and prepared by the National Association of Home Builders (NAHB), which explores the far-reaching economic impact of using federal tax credits to help fund affordable rental housing for low- and moderate-income families.
Beyond the obvious benefit to the construction and real estate industries, the housing tax credit program also impacts every facet of our communities. Residents of these rental housing units purchase groceries and other products locally; they support local services such as auto repair shops, health care providers, hair stylists and restaurants; and they pay local and state taxes and fees.
According to the study, the estimated one-year economic impact of building 149 new family tax credit units in New Hampshire include:
-$22.2 million in income for New Hampshire residents;
-$2.8 million in taxes and other revenue for the state and local governments; and
This positive economic activity continues beyond the one-year mark as residents of these affordable housing developments continue to spend money within the state. The NAHB report says that such projects will generate $8 million in dollars and support 110 jobs annually each subsequent year.
In New Hampshire, the federal Low Income Housing Tax Credit Program (LIHTC) is administered by New Hampshire Housing, which plays an integral role in bringing millions of dollars into the state through this program and provides an effective vehicle for encouraging private investment in new, affordable rental housing.
“Although we believe the NAHB report’s estimated impact is conservative, it still shows the significant benefit that housing tax credits bring to New Hampshire,” said Dean Christon, Executive Director, New Hampshire Housing. “The millions of dollars invested in housing developments each year infuse vital dollars in the local and state economies as residents spend money on rent, goods and services. This investment in affordable housing for the state’s workforce generates substantial economic activity for the Granite State.”
“The Economic Impact of the Housing Tax Credit Program in New Hampshire – Income, Jobs and Taxes Generated,” as well as a basic primer for understanding the way in which the housing tax credit program works, is available on New Hampshire Housing’s website at www.nhhfa.org
About New Hampshire Housing Finance Authority:
New Hampshire Housing Finance Authority is a self-supporting public benefit corporation. The Authority operates a number of programs designed to assist low- and moderate-income persons with obtaining housing. Since its inception, New Hampshire Housing has helped more than 38,500 families purchase their own homes and has been instrumental in financing the creation of more than 14,000 multi-family housing units. More information about its programs can be found on the agency's website at www.nhhfa.org