In a recent meeting of the New Hampshire Senate Ways and Means Committee, discussions centered on Senate Bill 158, which aims to address the state's ongoing housing crisis by expanding a successful tax credit program. The bill, introduced by Deputy Chief of Staff Grant Bossie on behalf of Senator Dan Innes, proposes to double the annual cap on the Community Development Finance Authority (CDFA) tax credit program from $5 million to $10 million. This increase is intended to enhance funding for local public-private partnerships focused on rehabilitating vacant or underused historic buildings.

The CDFA has been instrumental in providing technical assistance and financing options to New Hampshire communities since 1983. The existing tax credit program incentivizes businesses to donate to community projects by offering a 75% credit against various business taxes. This program has already funded numerous projects, including wellness centers and early education facilities, but advocates argue that the current cap limits its potential impact.

Katie Easterly Marthe, the executive director of the CDFA, highlighted the program's effectiveness, noting that for every $5 million invested by the state, approximately $11 million in economic activity is generated. She emphasized the pressing need for housing solutions, citing a 47% increase in median home prices since 2020 and a significant rise in homelessness. The proposed bill is seen as a vital step in leveraging private funds to tackle these challenges.

Support for the bill came from various stakeholders, including local business leaders and nonprofit organizations. They underscored the importance of the tax credit program in fostering community development and addressing the housing shortage. For instance, Nick Taylor from Housing Action New Hampshire pointed out that the program effectively converts historic structures into housing, which is crucial given the state's low vacancy rates and high rental costs.

The meeting also featured testimonies from individuals involved in various projects that have benefited from the CDFA tax credits. They shared personal experiences of how the program has enabled them to support local initiatives, create jobs, and revitalize communities.

As the committee moves forward, the potential passage of Senate Bill 158 could significantly enhance New Hampshire's ability to address its housing crisis while simultaneously promoting economic growth through community development. The next steps will involve further discussions and evaluations of the bill's implications for residents across the state.