Section 204-C:57 Fund Established.
I. There is hereby established within the authority an affordable housing fund. All revenues collected from the sources described in RSA 204-C:59 or from government appropriations or grants shall be credited to the fund, but such revenues shall not be deemed to be money received on account of the state, and nothing in this subdivision shall be understood as pledging the faith and credit of the state. Such funds shall be used by the authority to facilitate the purchase and rehabilitation or construction of affordable housing primarily for low and moderate income persons and families, as provided in paragraph II, and for pre-construction technical assistance to entities which undertake such efforts.
II. The authority shall enter into contracts for grants and loans with eligible applicants according to standards and rules that the authority shall adopt and publish. The authority shall make a good faith effort to approve applications from both for-profit and nonprofit organizations consistent with the criteria established in this paragraph. However, when entering into contracts pursuant to this section, the authority shall give priority to the affordable housing projects which meet one or more of the following criteria:
(a) Projects containing the highest percentage of housing units which are affordable to low income people;
(b) Projects containing the longest commitment to low-income people;
(c) Limited equity cooperatives, including, but not limited to, manufactured housing parks and apartment buildings, in which the majority of members are of low or moderate income;
(d) Projects containing the maximum number of units for low or moderate income families with children; and
(e) Projects which shall preserve the existing stock of low and moderate income housing.
No application from an eligible applicant shall be rejected solely or primarily because a greater level of assistance will be required to make the proposal feasible due to market conditions prevailing in the geographical area as opposed to other areas of the state.
III. In granting assistance pursuant to paragraph II, the authority shall make all reasonable efforts to assure that all geographic areas from which there are proposals satisfying the criteria of paragraph II shall receive assistance.
IV. The authority shall not provide financial assistance under this subdivision to any project in which more than 50 percent of the units will not be affordable to persons of low or moderate income.
V. Prior to granting any assistance pursuant to RSA 204-C:57, II, the authority shall find with respect to each such commitment:
(a) That there exists a shortage of decent, safe and sanitary housing available at costs which low or moderate income persons can afford within the general housing market area, as determined by the authority;
(b) That without the assistance contemplated by such commitment, private enterprise cannot supply such housing in such general housing market area at rentals or carrying charges which low or moderate income persons can afford without the expenditure of more than 30 percent of their income; and
(c) That the assistance contemplated shall preserve or increase the supply of decent, safe and sanitary housing for low or moderate income persons and shall be of public use and provide a public benefit.
VI. Loans made from the fund shall be for periods and terms to be determined by the authority. Such loans may include, but shall not be limited to:
(a) Long-term mortgage loans to finance the total cost of a project or to supplement other available financing; and
(b) Short-term loans to supplement use of other funds, including tax-exempt bond proceeds.
VII. Prior to granting any assistance pursuant to 204-C:57, II for new construction, the authority shall hold a public hearing in the community in which the proposed project is to be located.
Source. 1988, 240:5, eff. July 1, 1988.