Meredith Village Savings Bank (MVSB) pledged to purchase $50,000 in New Hampshire business tax credits from Lakes Region Community Developers (LRCD) to support Harriman Hill Homes, a development of 20 affordable starter homes in Wolfeboro, NH. The proceeds of LRCD’s tax credit sales will offset the cost of the road, water and sewer infrastructure for the development so that the homes can be sold for around $200,000 to first-time buyers who make less than 120% of the area median income, which is $83,000 for a family of four. LRCD still has $150,000 in tax credits to sell by March 30, 2020.
“The Lakes Region needs more affordable homes for first-time buyers so we can grow the workforce that will enable our businesses and communities to thrive,” said Rick Wyman, President of MVSB. “We are excited to support Harriman Hill Homes through the tax credit program because it allows us to make a significant contribution to a project that addresses a pressing need in the communities we serve.”
The tax credits are administered by New Hampshire Community Development Finance Authority (CDFA). Any business with operations in NH that contributes to a CDFA tax credit project receives a NH state tax credit worth 75% of their contribution. The credit can be used over a period of five years to reduce the business’ state tax liability (business profits, business enterprise or insurance premium taxes). The tax credit program allows NH businesses to use their state tax dollars to support local projects that they care about.
CDFA reviews many project applications each year and awards tax credits to those they determine are feasible and will make the biggest impact on economic development in the state. LRCD was awarded $300,000 in credits for Harriman Hill Homes and has sold $150,000 of those credits to date.
Harriman Hill Homes is LRCD’s first homeownership development in its 26 year history. LRCD has historically developed rental homes for people of low income, but recently expanded its mission to include other types of real estate development that respond to community needs. The site for Harriman Hill Homes is located on Beck Drive off Route 109A in Wolfeboro.
“Over the past decade, for-profit developers have found it increasingly difficult to build affordable starter homes due to increased costs,” said Carmen Lorentz, Executive Director of LRCD. “The combination of a low inventory of starter homes and a strong market for second homes leaves many families who live here year-round unable to find a house they can afford.” According to the NH Association of Realtors, the median sales price of a home in Carroll County in August was $260,000 and the average days a home stays on the market was 51, indicating high demand and low inventory.
Businesses interested in supporting Harriman Hill Homes by purchasing tax credits should contact Carmen Lorentz at (603) 524-0747 ext 110.
Lakes Region Community Developers helps the Lakes Region thrive by developing healthy homes, creating vibrant community assets and engaging residents. Founded in 1988 as the Laconia Area Community Land Trust, LRCD has developed 365 healthy and affordable rental homes in Ashland, Gilford, Laconia, Meredith, Tilton and Wolfeboro. In 2017, LRCD expanded its mission to include new types of real estate development and new programming that empowers residents to effect positive change in their communities. For more information, visit lrcommunitydevelopers.org.