What's Happening?
Elm Grove Companies has commenced construction on Hale Crossing, a 55-unit workforce housing community in Newport, New Hampshire. This project, developed in collaboration with EGCON, marks Elm Grove's
tenth venture in affordable housing, contributing to a statewide portfolio of over 480 units. Hale Crossing will employ the federal Low-Income Housing Tax Credit (LIHTC) program's income averaging model, allowing flexibility in serving residents earning between 20% and 80% of the Area Median Income. The project is financed through LIHTCs allocated by New Hampshire Housing, purchased by TD Bank via Redstone Equity Partners, and supported by tax-exempt bonds issued by New Hampshire Housing. Additional capital subsidies and risk share enhancements are provided by NH Housing and the U.S. Department of Housing and Urban Development. The development is designed to Energy Star standards and incorporates Passive House principles, including rooftop solar arrays. Amenities will include a playground, community room, laundry facilities, and controlled access.
Why It's Important?
The Hale Crossing project addresses the urgent need for affordable housing options in New Hampshire, particularly for the workforce. By utilizing the LIHTC program, Elm Grove Companies is leveraging public-private partnerships to attract private equity investment, which is crucial for the creation of affordable multifamily housing. This initiative not only provides housing solutions but also strengthens local communities by offering sustainable living options. The project represents a significant investment in the region, with a total development cost exceeding $20 million, which includes land, construction, financing, and related soft costs. The involvement of various stakeholders, including architects, contractors, and legal counsel, underscores the collaborative effort required to tackle the housing crisis effectively.
What's Next?
The groundbreaking ceremony for Hale Crossing was held on November 10, marking a significant step forward in addressing New Hampshire's housing crisis. As construction progresses, Elm Grove Companies and its partners will continue to focus on sustainability and community benefits. The project serves as a model for future development opportunities, with potential implications for similar initiatives across the state. Stakeholders, including NH Housing and Elm Grove, are expected to monitor the project's impact on local housing needs and explore further opportunities to expand affordable housing options.
Beyond the Headlines
The Hale Crossing project highlights the importance of innovative approaches to affordable housing development, such as the use of LIHTC income averaging models. This approach allows for greater inclusivity in housing, catering to a broader range of income levels. Additionally, the incorporation of sustainable building practices, like Energy Star standards and Passive House principles, reflects a growing trend towards environmentally conscious development. These practices not only reduce energy costs but also minimize environmental impact, contributing to broader efforts to combat climate change.
