By BOB MARTIN
Eagle Times Staff
NEWPORT, N.H. — Representatives of the Elm Grove Companies met with the Newport Board of Selectmen on Monday to hold a “Q&A” about 55 units of proposed affordable housing at 21 Cross Street and another building on Central Street.
Town Manager Kyle Harris explained that Elm Grove Companies met with the selectmen last month about an effort to secure funds through a Community Development Block Grant, but the board chose not to pursue it at that time as they wanted more information. The project is just in its planning stages; funding still needs to be secured, and the land needs to be purchased. It has, however, already been approved by the Newport Planning Board.
“They came back with some more information last night, and the board had additional questions, and I’ll be meeting with Elm Grove to get some additional information the board needs so they can make an informed decision moving forward,” Harris said. “It was just an informational session.”
Chief Operating Officer Matt Menning explained at the meeting that Elm Grove operated between 1,500 and 1,700 apartments that are mostly in New Hampshire. They focus on older properties, historic rehabilitation, affordable housing and workforce housing. Menning said for these projects financed with tax credits, they are tied to the projects for not less than 15 years. There are reserves and inspections each year that are performed.
“These properties don’t look much different than any market rate properties,” he said. “They’re maintained the same way, and sometimes even better.”
Chris Schleyer, a principal at Elm Grove, explained that affordable housing looks like market rate housing with the same quality of construction and amenities, looking and feeling the same. The Low-Income Housing Tax Credit Program is an IRS program designed to help middle income folks, and in Newport one person living in these units can’t earn more than $43,920 but if they have a child, they can earn $50,000. The goal is to have it at 60% of the town’s median income, which is about $120,000.
“The type of people who will live in these are your regular blue- and white-collar working folks in town,” Schleyer said. “Their rents are usually set between $1,300 to $1,500 for an apartment, which is crazy because four years ago that was the median income of a market rate apartment in the state of New Hampshire.”
He said housing prices are going up, and so is income, which is driving this. This program is not for low-income people, he said, and is for people with jobs and seniors who are downsizing. The state will set the rent prices based on incomes and nobody can come in and just raise the rent prices. If someone were to get a raise while living there, their rent would also not be raised, and they won’t be forced out of their living situation. Schleyer also noted that the utilities will be included in the rent price.
“The whole intention of a program like this is to create housing at a price for people of a missed middle-income bracket can afford, so they can move into home ownership and whatnot for the future,” he said. “Thirty to 40% of people move out of these apartments and move into market rate apartments in the future or buy a house or a condo. I think there’s a lot of stigma that this is like the projects of the 1970s.”
Menning said fully subsidized housing involves the government paying rent, and this is different than this program. He said 75% of these people are paying the total of rent, but they do accept Section 8 vouchers, which tend to be seniors.
“This is very helpful to folks because right now if we built a market rate apartment in Newport we’d probably have to charge $2,500 a month for rent in order for a project to make any sense and actually work,” Menning said. “This program allows us to do it and charge a whole lot less and creates stability because those rents don’t go up on a whim, or by the owner’s desire. We’re stuck in this project for 15 years, but 40 years this project would have to remain in this program and remain affordable according to the area mean income.”
Elm Grove Companies is also in charge of the 73 properties created in the old Ruger mill on Sunapee Street, and Selectman Rachel Dilger said she recently toured them. She said they were nice, and if she were single in her 20s, she would probably think of renting one herself.
Harris said this is a little different because it is a renovation compared to a complete new construction proposed at Cross and Central Streets, but the idea of the apartments should be similar and are both for affordable housing.
Menning said he loves downtown Newport, and that it has “good bones,” and bringing in more housing would be good for the downtown. He said these tenants work, will bring in business and create business, and will be an economic base in the community.
“The overall goal is that people living in these properties do not pay more than 30% of their income,” Menning said.
Schleyer said there is an extensive vetting process, looking for good credit scores and those who haven’t been evicted. They look at criminal background, as well, and will not allow violent criminals or sex offenders. He said they want to make sure that there are the best credit-worthy tenants who are also well behaved.
The funding for this would come through a Community Development Block Grant, and Selectman Jeff Kessler inquired when the developers would need an answer. Menning said they would need it in about a month, and this conversation was to make sure they had all the information they needed to move forward.
“I’m going to meet with them first, and I’ll give information to the board, and the board might request that they come back,” Harris explained. “Nothing is set in stone. The property owner has planning board approval for the 55 units, but now they are trying to get the funding piece for this project.”
Harris said there are many opportunities for funding, and the CDBG requires the town to apply on behalf of the developer, which does not own the land yet but has plans to purchase it from developer Ron DeCola. The board would then need to make a vote for them to move forward.
“The CDBG funding deadline is for July, so they have plenty of time,” Harris said.
