The impact of the low-income housing tax credit (LIHTC) program reaches much deeper than the approximately 200 affordable housing units that are financed each year in New Hampshire, according to a new study.
More than just housing, the LIHTC developments are an important and ongoing source of income, taxes, and jobs for the Granite State and its cities.
“We were able to reinforce our sense that the program is important to individual communities and the state as a generator of economic benefits,” said Dean Christon, executive director of the New Hampshire Housing Finance Authority.
Commissioned by New Hampshire Housing and prepared by the National Association of Home Builders (NAHB), the study estimates the economic impact of building 149 family and 53 seniors housing tax credit units in the state. The number of units is based on average annual tax credit production in New Hampshire.
First, the estimated one-year impacts of building 149 new family tax credit units in the state include:
- $22.2 million in income for New Hampshire residents;
- $2.8 million in taxes and other revenue for state and local governments; and
- 328 jobs.
However, the economic benefits don’t end with the construction and real estate activity associated with building the housing developments. That’s because residents of the new housing will shop in local stores, support area services, and pay taxes.
The study estimates that that the annually recurring impacts of the 149 family units include:
- $6.1 million in income for New Hampshire residents;
- $1.5 million in taxes and other revenue for state and local governments; and
- 83 jobs.
The estimated one-year impacts of building 53 seniors units include:
- $7.1 million in income for New Hampshire residents;
- $927,000 in taxes and other revenue for the state and local governments; and
- 105 jobs.
The annual recurring impacts of these senior LIHTC apartments include:
- $2 million in income for New Hampshire residents;
- $445,000 in taxes and other revenues for the state and local governments; and
- 27 jobs.
The findings come at a time when the housing tax credit and other government programs are under intense scrutiny. “It’s incumbent on all of us who run those programs to be able to demonstrate the value generated by the investment,” Christon said.
New Hampshire Housing leaders plan to use the findings to bolster the conversation about affordable housing. The results show that in addition to providing homes for families and seniors, the LIHTC developments generate substantial economic activity, Christon added.
To see the report, “The Economic Impact of the Housing Tax Credit Program in New Hampshire: Income, Jobs, and Taxes Generated,” visit www.nhhfa.org.