Published: 1/30/2023 4:46:41 PM
Modified: 1/30/2023 4:46:28 PM
Three housing projects in Concord will add to the city’s affordable housing stock, with funding grants from InvestNH, the $100 million statewide fund to accelerate development.
Developers at the three Concord projects – on Sheep Davis Road, 195 Pembroke Road and the second phase of Penacook Landing -- are set to build 152 units, in the next 18 months. Nine out of 10 of those units will be considered “affordable,” which is higher than the statewide average
In total, the $100 million fund to help build affordable housing, is set to accelerate the construction of 1,472 units statewide. Just over 60 percent of these units will be affordable, meaning their rent will be restricted based on median area income levels.
For the projects housed in Concord, all of the 84 units at the 195 Pembroke Road development will be affordable. Sheep Davis Road will be home to 48 units, of which 36 will be affordable. At the second phase of Penacook Landing, 18 of the 20 units will be affordable.
“We’ve had a very significant housing crisis in the state and that is in fact, probably, the number one challenge that we have from an economic standpoint,” said Taylor Caswell, the commissioner of the New Hampshire Department of Business and Economic Affairs, told members of a Senate finance committee last week.
Gov. Chris Sununu announced the InvestNH fund in July, which utilizes remaining American Rescue Plan funds the state was awarded. There are two main components, the capital grant program and municipal grant program .
The capital portion allocates $60 million to developers to increase the housing stock in the state. The other $40 million provides incentives for cities and towns to permit additional units of affordable housing and supports plans to adjust zoning ordinances and demolish vacant properties.
For the capital grant program, 30 developers statewide received grants of up to $3 million to help complete affordable housing projects that were underway. The Executive Council approved these grants at their November 2 meeting last year.
The timeframe of 18 months for developers to spend funds in hopes of providing a fast solution to a growing housing crisis in the state. In 2022, the statewide rental vacancy rate for all units was less than one percent. Over the last five years, the median cost of rent for a 2-bedroom has increased by about 25 percent statewide.
A project in Franklin will also add to the number of units in Merrimack County, however, just a few will be affordable. Stevens Mill, an old textile plant in the city, will be converted into 153-units. Of the hundred plus units, only 31 will be designated as affordable.