MANCHESTER, NH – Redevelopment of the former Hallsville School building has been approved for 2026 Low-Income Housing Tax Credits, a key step in developing the 36-unit affordable housing project.
The planned redevelopment of the former school at 275 Jewett St., built in 1891, which has been empty for five years, had the second-highest score of eight project applications that met the criteria for the LIHTC program, which awards tax credits to developers who put aside a percentage of units for lower-income tenants, as well as meets other rigorous criteria set by the U.S. Department of Housing and Urban Development.
The program is instrumental in developing and preserving affordable rental housing , and is the largest source of federal subsidy to incentivize housing development. Developers are awarded tax credits, which are clamed over 10 years, in exchange for a percentage of units set aside for lower-income tenants. HUD sets a cap on rent charged to tenants.
NH Housing announced last week that its Board of Directors approved awards of $4.84 million in tax credits for six projects in 2026 that represent more than 200 apartment units. Other approved projects are in Portsmouth, Rochester (two), Hillsborough and North Conway.
“The projects recommended for funding represent a diverse range of sponsors, including four for-profit entities, one public housing authority, and one nonprofit organization,” the release said. “They are spread across Hillsborough, Rockingham, Carroll, and Strafford counties,” and represent projects ”aimed at various populations, including general occupancy and age-restricted units for residents aged 62 and older.”
The Hallsville School project, by York Hallsville Building LLC, proposes to turn the 55,000-square-foot, three-story former school building into 36 apartments, with 13 studios, 14 one-bedroom and nine two-bedroom.
The plan calls for 90% of the units to be affordable housing, and 10% to be workforce housing, Brian Pratt, a civil engineer with Fuss & O’Neill, told the Zoning Board of Appeals in June.
Affordable housing is defined by HUD as being for tenants earning 60% of less of the area median income, with rents set at 30% of that. The 2025 AMI for Manchester is $58,980 for an individual, which means a one-person household must earn $51,600 or less to qualify for affordable housing. AMI increases with household size. Workforce housing is a state designation and has a more flexible definition, but also must have rents affordable to people who make 100% of AMI or less. [See box below]
Pratt told the ZBA that “affordable housing,” as defined by HUD, is intended for working people, like teachers, police officers, firefighters, and people just starting out.
There are “some misconceptions,” about who will live in the redeveloped Hallsville building, he told the ZBA in July, after a contentious June meeting where the project’s variance request was tabled.
“It seems that some people think that this is more of like a halfway house, where there is going to be homeless people hanging out. That is not what this is,” Pratt said. The ZBA approved the variances at that meeting, and the Board of Mayor and Aldermen approved the project in August.
Built in 1875, the Hallsville building has been vacant since 2021. An engineer’s study in 2023 determined it would take $1 million to bring the building up to usable standards. The developer bought the building in May from the city for $50,000 after another project, in which the city was to donate the building, fell through.
Developer Kyle York said at the time that LIHTC approval is the first big step in development of the building.
In New Hampshire, the LIHTC program is administered in conjunction with the state Affordable Housing Fund and other forms of capital subsidy. This year, New Hampshire Housing received nine applications for the highly competitive 9% LIHTCH program, representing $6.99 million in tax credits and $12.57 million in capital subsidy. The 9% program may fund up to 70% of a developer’s eligible costs and is administered over 10 years. The units must remain affordable for 30 years, and are monitored by HUD. There is also a non-competitive 4% program, which covers about 30% of eligible costs.
The maximum LIHTC allocation that a general occupancy project may request in any single funding round is $880,000. The maximum LIHTC allocation that an age-restricted project [62 and older] may request in any single funding round is $660,000.
“We are excited about the beautiful and affordable homes that our partners across the state will create with the support of the LIHTC, AHF, and other resources,” Kelly Roy, managing director of the Multifamily Division at NH Housing, said in the release. “Developers will be able to raise more than $40 million from the sale of these federal tax credits, resulting in the construction of more than 200 new rental apartments. Homes created through this program will be affordable for decades to come.”
Projects are scored on requirements set by HUD, ranging from number of units for lower-income residents, age-restricted units, and supportive housing to things like developer experience.
The projects reserved for 2026 LIHTCs are:
Sherburne School, 35 Sherburne Road, Portsmouth. Sponsor/Developer: PHA Housing Development Ltd.
Hallsville School, 275 Jewett St., Manchester. Sponsor/Developer: York Hallsville Building LLC.
The Residences at Riverside Park, 43 Old Dover Road, Rochester. Sponsor/Developer: New Hampshire Catholic Charities.
Nutter Woods, McKinley Street, Rochester. Sponsor/Developer: McIntosh Development LLC
Hillsborough Heights Phase II, 219 West Main St., Hillsborough. Sponsor/Developer: Avanru Development Group, Ltd.
Trailside, 95 Common Court, North Conway. Sponsor/Developer: Developers Collaborative LLC.
