Establishing a historic housing tax credit and making appropriations for workforce housing and affordable housing.
Impact
In addition to providing a tax credit, SB231 appropriates funds for various housing-related initiatives. Approximately $25 million is earmarked for the Housing Finance Authority to support affordable housing endeavours, while $30 million is allocated to the Department of Business and Economic Affairs aimed at expediting the approval processes for affordable workforce housing projects. Furthermore, it designates $10 million to the Department of Health and Human Services for the provision of shelter services, housing stabilization, and eviction prevention strategies over the next biennium, thus highlighting a commitment to address homelessness and housing insecurity.
Summary
Senate Bill 231, also known as SB231, aims to establish a Tax Credit for historic housing preservation while also making significant appropriations to address workforce and affordable housing needs in New Hampshire. The bill outlines a historic housing preservation tax credit applicable to contributions made towards rehabilitating eligible historical structures intended for residential use. It offers a substantial tax credit of up to 65% of the contributions made to a specific authority, thereby incentivizing investments in historic properties that also serve as income-generating residences.
Contention
While the benefits of the bill include the stimulation of investments in housing development and preservation, proponents assert that such measures are essential for community development and economic growth, there are concerns regarding the potential impact on state revenues. The anticipated decrease in revenue, primarily from the new tax credits, could limit the funds available for other state initiatives. Critics argue that the effectiveness of the tax credits in attracting investment remains uncertain, raising questions about the long-term fiscal implications of such policies on state budgets.