LACONIA — The Laconia Area Community Land Trust (LACLT) has been awarded $500,000 in tax credits to sell by New Hampshire's Community Development Finance Authority (CDFA).
The proceeds from the sale to business donors will be used to upgrade 60 units of permanently affordable rental housing owned by LACLT, many of which are showing significant wear and tear.
Twenty years ago, the Laconia Area Community Land Trust began rehabbing scattered-site apartments in Laconia. Five years later, LACLT finished its first major project – a $1.4 million revitalization of the city's Avery Hill neighborhood. Pine Hill and other Land Trust projects quickly followed.
Now LACLT is working on a Portfolio Strengthening Initiative for these properties, which for years have provided safe, well-managed homes for hundreds of people while increasing property values and tax revenue. Because LACLT remains committed to preserving these permanently affordable community assets, the aging units need a capital infusion to position them for success for the next two decades.
Statewide, more than $4.1 million was recently awarded through the CDFA Tax Credit Program. Twenty-three community projects throughout the state sought tax credit funding; 10 initiatives were approved. LACLT's Portfolio Strengthening Initiative was one of only three
applications awarded its full request.
Awards made to these organizations are tax credits, not cash. The Tax Credit Program enables businesses to donate to LACLT in exchange for a state tax credit that can be applied against the New Hampshire business profits, business enterprise, or insurance premium taxes. The
state tax credit is equal to 75% of that contribution. In addition, the contribution may be treated as a charitable deduction to the the extent the federal laws allow. Tax credit may be carried forward during a five-year period. After both state and federal tax benefits are accounted for, a contribution of $10,000 actually costs the company less that 11% or $1,100. LACLT is responsible for securing donations/pledges from for-profit companies with a New Hampshire state tax liability.
CDFA, created by legislation in 1983, is a nonprofit public instrumentality of the State of New Hampshire. CDFA administers nearly $57 million in funding resources, which includes a combination of state Tax Credits and federal Community Development Block Grant, Neighborhood Stabilization, and Energy Reduction Funds. CDFA supports the development of vibrant and resilient communities by providing
resources for community development efforts.
For more information about purchasing tax credits from LACLT in support of their Portfolio Strengthening Initiative contact Hope Jordan at 603-524-0747, or visit www.laclt.org.