The URL can be used to link to this page

Home My Public Portal AboutCC-105_Community Revitalization Tax Credit Guidelines_Effective 08-04-2021 City of Lebanon New Hampshire COUNCIL POLICY COMMUNITY REVITALIZATION TAX RELIEF INCENTIVE PROGRAM GUIDELINES Policy Number Effective Date Last Revision Page No. CC-105 08/04/2021 Page 1 of 4 Approved by: City Council Section 1.0: Purpose This document details the guidelines City Council will be utilizing when considering applications for the Community Revitalization Tax Relief Incentive Program, commonly known as 79-E. The guidelines are intended to assist applicants as they develop their applications allowing them to take full advantage of the program and meet the City’s community revitalization goals. Section 2.0: Scope The guidelines apply to applicants, City Staff in the Planning & Development Department, the City Manager’s Office, the Downtown Tax Increment Financing District Advisory Board, and the City Council. Section 3.0: Definitions Workforce Housing – (as provided in New Hampshire RSA 674:58, IV) means housing which is intended for sale and which is affordable to a household with an income of no more than 100 percent of the median income for a 4-person household for Grafton County as published annually by the United States Department of Housing and Urban Development. "Workforce housing" also means rental housing which is affordable to a household with an income of no more than 60 percent of the median income for a 3-person household for Grafton County as published annually by the United States Department of Housing and Urban Development. Section 4.0: Policy Detail In February 2016, the City Council adopted the provisions of the Community Revitalization Tax Relief Incentive Program pursuant to NH RSA 79-E to encourage rehabilitation of existing buildings and structures in downtown Lebanon and downtown West Lebanon. At that time, the City Council established a Downtown Lebanon 79-E District and a Downtown West Lebanon 79-E District. Section 5.0: Procedures Upon receipt of an application for tax relief under the City’s 79-E program for a project that involves the Substantial Rehabilitation of a Qualifying Structure, as those terms are defined in RSA 79-E:2, the City Council shall hold a public hearing within 60 days. 5.1 The Council must determine if a project will generate one or more Public DocuSign Envelope ID: 42DB1BC7-7EF1-4337-B832-EA4AB54EA12B City of Lebanon New Hampshire COUNCIL POLICY COMMUNITY REVITALIZATION TAX RELIEF INCENTIVE PROGRAM GUIDELINES Policy Number Effective Date Last Revision Page No. CC-105 08/04/2021 Page 2 of 4 Approved by: City Council Benefits. Appropriate public benefits for consideration of the 79-E program are specifically identified within the state law, including:  Enhancement of the economic vitality of the downtown; (RSA 79-E:7, I)  Enhancement and improvement of a structure that is culturally or historically important on a local, regional, state or national level, either independently or within the context of an historic district, town center, or village center; (RSA 79-E:7, II)  Promotion of the preservation and reuse of existing building stock throughout a municipality by the rehabilitation of historic structures; (RSA 79-E:7, II-a)  Promotion of the development of municipal centers, providing for efficiency, safety, and a greater sense of community consistent with RSA 9-B (State Economic Growth, Resource Protection, and Planning Policy) (RSA 79-E:7, III); or  Increase of residential housing in urban or town centers. (RSA 79-E:7, IV) 5.2 The Council must determine the period of time for which tax relief will be granted. 1. Under the terms of the 79-E program, the City Council may, in its discretion, grant up to five (5) years of tax assessment relief for a project that complies with the program requirements. (RSA 79-E:5, I) 2. The City Council may, in its discretion, grant up to two (2) additional years of tax relief for a project that results in new residential units and up to four (4) additional years of tax relief for a project that includes affordable housing. (RSA 79-E:5, II) 3. The City Council may, in its discretion, grant up to four (4) additional years of tax relief for the Substantial Rehabilitation of a Qualifying Structure that is listed on or determined eligible for listing on the National Register of Historic Places, State Register of Historic Places, or is located within and important to a locally designated historic district, provided that the Substantial Rehabilitation is conducted in accordance with the U.S. Secretary of Interior’s Standards for Rehabilitation. (RSA 79-E:5, III) For any amount of tax relief approved, such tax relief begins upon the completion of the substantial rehabilitation of the structure(s). DocuSign Envelope ID: 42DB1BC7-7EF1-4337-B832-EA4AB54EA12B City of Lebanon New Hampshire COUNCIL POLICY COMMUNITY REVITALIZATION TAX RELIEF INCENTIVE PROGRAM GUIDELINES Policy Number Effective Date Last Revision Page No. CC-105 08/04/2021 Page 3 of 4 Approved by: City Council RSA 79-E does not define the term “affordable” for purposes of the tax relief incentive program nor does it specify any minimum number or percentage of units within a development that must be considered affordable in order to merit the tax relief. Therefore, the City has adopted the definition of “workforce housing” from RSA 674:58 to define affordability as it relates to the RSA 79-E program. The City will consider granting additional years of tax relief for workforce housing on a sliding scale depending on the targeted level of affordability (based on Area Median Income figures as published by the US Department of Housing and Urban Development (HUD)) and the percentage of units in a development subject to such affordability requirements as follows: TARGETED AREA MEDIAN INCOME (AMI) 60% or less 60 - 70% 70 - 80% 80 - 90% 90 - 100% % OF UNITS IN PROJECT 40% or more 4 3 3 2 1 30-40% 4 3 2 1 1 20-30% 3* 2 2 1 0 10-20% 2* 1 1 1 0 0-10% 1* 1 0 0 0 * Units targeted for 50% or less of AMI qualify for 1 additional year of tax relief However, the City understands that a significant purpose of the 79-E program is to enable and incentivize rehabilitation projects that may not otherwise be financially viable. If the City Council concludes that requiring a project to achieve the recommended affordability standards would undermine the viability of the project and prevent it from occurring at all, then the City Council shall retain the discretion and freedom to vary the affordability requirements while still balancing the overall benefit to the community of the completed project against the potential tax revenue foregone. 5.3 Tax Increment Financing (TIF) Districts Applications for tax relief under this program for properties located within a Tax Increment Financing (TIF) District shall be reviewed by the applicable TIF Advisory DocuSign Envelope ID: 42DB1BC7-7EF1-4337-B832-EA4AB54EA12B City of Lebanon New Hampshire COUNCIL POLICY COMMUNITY REVITALIZATION TAX RELIEF INCENTIVE PROGRAM GUIDELINES Policy Number Effective Date Last Revision Page No. CC-105 08/04/2021 Page 4 of 4 Approved by: City Council Board. The Advisory Board shall provide recommendations to the City Council and the District Administrator regarding the impacts to the administration and operation of the District relative to the proposed tax relief requested. Section 6.0: References (Charter/Code/State Statues) 1. NH RSA Chapter 79-E Community Revitalization Tax Relief Incentive 2. NH RSA 674:58 Definitions-Workforce Housing 3. City Code Chapter 31-43,2. Downtown TIF Advisory Board, Purposes; Authority and Duties Section 7.0: Policy & Procedure Revision History Section Revisions Date Original Adoption 08/04/2021 Amendment Amendment Amendment DocuSign Envelope ID: 42DB1BC7-7EF1-4337-B832-EA4AB54EA12B