7/30/2018 WebGrants - NH CDFA

Application

11920 - 2019 and 2020 Investment Tax Credits - Final Application

12169 - Court Street Workforce Housing Project

Investment Tax Credits

Submitted
Status: Awarded 03/09/2018 1:27 PM
Date:

Applicant Information

Primary Contact:
Name:* Ms. Valerie Labrie
Salutation First Name Middle Name Last Name

Title: FINANCE DIRECTOR

Address:* 245 MIDDLE STREET

* PORTSMOUTH New Hampshire 03801

City State/Province Postal Code/Zip

County Rockingham
City Outside NH:

Phone:* 603-436-4310 1116

Phone (999-999-9999) Ext.

alternate phone number

alternate phone type CELL

Fax: 603-436-4937
Email:* v_labrie@nh-pha.com

Organization Information
Is this Org Flagged?

IF Flagged, Explain

Name:* PHA Housing Development Ltd

Type:* Non Profit / 501C3
Tax ID: 02-0481882
Website: www.porthousing.org
Fiscal Year End: 12/31/2018
Address:* 245 MIDDLE STREET

City/State/Zip* Portsmouth New Hampshire 03801

City State/Province Postal Code/Zip

City Outside NH:

County Rockingham
Phone:* 603-436-4310 1116
(999-999-9999) Ext.

Fax: 603-436-4937
This information will be used to notify the A.O on issues relating to the application and/or grant.

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Authorized Official* VALERIE LABRIE

Authorized Official Email
v_labrie@nh-pha.com
Address*
Don't have a DUNS #? Click here to apply.

DUNS Number
96-611-5367
(Required):*

Executive Council
District 3 - Councilor Russell E. Prescott
District*
Don't have a CCR #? Click here to apply.

CCR CAGE Number

(Central Contractor
Registry)

Statutory Elibibility

Applicant

Choose Your Eligible

Applicant Type (reference Nonprofit organization involved in community development
RSA 162-L:1): *

Applicant Information*

Please briefly describe the mission of your organization, its structure type,and governance. (2000 Character Limit)

PHA Housing Development, Ltd. is a nonprofit affiliate of the Portsmouth Housing Authority (PHA),
serving as the General Partner of PHA’s tax credit portfolio and recipient of private funds that support
PHA programming. The PHA was established by the City of Portsmouth in 1953 to address its shortage
of safe, sanitary, and affordable housing for low income people. The PHA built its first development in
1959 and is today a dynamic organization that has developed and manages over 600 permanently
affordable rental apartments housing over 1,000 people.

The PHA is a developer, adept at utilizing LIHTC, public, and private financing to create affordable
housing. It is property manager of its 600 units. It operates the Section 8 Housing Choice Voucher
Program, which allocates over 400 vouchers that house 750 people. And the PHA operates a Resident
Services Coordination Program that connects residents to social services, transportation, health care,
arts organizations, and recreational opportunities.

The PHA is an independent special-purpose local government entity governed by a six- member Board of
Commissioners that are appointed by the Mayor of Portsmouth and serve five-year terms. The
Commissioners appoint the Board of PHA Housing Development, Ltd. Both Boards share an Executive
Director.

The PHA’s $83 million in real estate assets are a critically important piece of the city’s infrastructure; its
residents and staff are at the heart of the city’s civic and social fabric. The PHA is the largest Public
Housing Authority per capita in New Hampshire, housing nearly 4.5% of the population of the city. The
PHA is the City of Portsmouth’s largest landlord, a lead participant in the conversation about the need for
additional affordable housing, and a resource identified by the elected and appointed officials, the
business community, the thriving arts community, and the general public who have been calling on the
city to address the pressing community need for affordable housing.

Project Type* Housing

Eligibility Threshold Attachments

Articles of PHA HOUSING DEVELOPMENT LTD - ARTICLES OF INCORPORATION 02-

Incorporation* 23-18.pdf
By Laws* PHA HOUSING DEVELOPMENT LTD - BY LAWS 1995 02-23-18.pdf
IRS Determination PHA HOUSING DEVELOPMENT LTD - IRS TAX DETERMINATION LETTER
Letter* 02-23-18.pdf
Proof of Good Standing
PHA HOUSING DEVELOPMENT LTD - PROOF OF GOOD STANDING 02-
with NH Secretary of
State* 23-18.pdf

Tax Credit Request

The CDFA Tax Credit program allocates tax credits to community development projects through a competitive award process.
Projects receiving an award must seek donors with certain tax liability for the awarded credits. Enter the amount of tax credit funds
your project will need to be successful. The application will calculate the amount of tax credit donations you will need to raise.

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Please note: CDFA cannot guarantee tax credit awards in the year(s) you have requested. CDFA reserves the right to award tax
credit funding as a grant, loan, equity, or a combination thereof.

Year 1:*
$200,000 $250,000
Year 1 Requested Allocation Year 1 Amount Needed to Raise

Year 2:* $400,000 $500,000

Year 2 Requested Allocation Year 2 Amount Needed to Raise

Total Requested $600,000 $750,000

Allocation:
Total Requested Allocation Total Amount Needed to Raise

Total Project Cost * $16,365,846

Project and Readiness Information

Project Name* The Court Street Workforce Housing Project

Project Address* 140-152 Court Street, Portsmouth
Executive Summary*

Briefly describe your proposed project (2000 character limit)

The Court Street Workforce Housing Project is a historic opportunity to develop workforce housing right
in the heart of downtown Portsmouth. Embraced by the City, residents, and business community, this
project will convert land already owned by the PHA and what is now primarily a surface parking lot and
re-develop it into 64 one- and two-bedroom units. This will be a mixed income property: 70% of the units
will be workforce housing financially accessible to households at or below 60% of Area Median Income
(AMI); the balance will be affordable to low income households earning less than 80% of the AMI.
Because it is located in a historic district, the building will be carefully designed to enhance the character
of Portsmouth’s historic downtown.

The need for this project is well-documented. The city’s 2025 Master Plan, the Portsmouth Business
Expansion and Retention Report, Portsmouth Listens, and the Mayor’s Housing Committee all identify
the need for housing that is affordable to the city’s workforce. If the city fails to address its shortage of
affordable housing it risks losing the social and economic vitality it treasures – vitality driven, in part, by
those who are employed in its world-class creative economy and are valued public service employees.

The Court Street Workforce Housing Project will:

Develop 64 units of affordable housing that will be home to 120 people;

Support Portsmouth businesses’ ability to attract and retain employees;
Create value by developing on an underutilized parking lot; and,
Improve the streetscape view by constructing a building that is both attractive and visually
connected to the historic district in which it will be located.

This project is the culmination of years of planning, both on the part of the community and the PHA.
Funding will come from Low Income Housing Tax Credits, NHHFA grants and loans, and an equity
investment on the part of the PHA. CDFA tax credits are an important part of the project’s financing
structure.

Property Description

If this project involves the acquisition, construction, or renovation of real estate, provide detailed information on the property.
Describe the property, its ownership structure, and the status of site control.
Please describe the historic significance of your project property if applicable. Is it listed on the National and/or State Register of
Historic Places? Is it located in a local historic district?
List any mortgages or deed restrictions that are on the property. Is there anything that would prevent CDFA from putting a use-
restricting mortgage lien on the property?
Please upload a recent property appraisal, planning and zoning approvals and an asset management plan (projection of future
capital improvements) if applicable in the “Project Information and Community Benefit Attachments” component of the application.
(2000 Character Limit)

Court Street Workforce Housing will be located at what is now 140 and 152 Court Street in the heart of
downtown Portsmouth. The PHA owns 140 Court Street, which is Feaster Apartments and its
underutilized one-acre parking lot. It has a P&S on 152 Court Street, a portion of which will be
demolished (a historic single family home will be preserved and integrated into the development plan).
The 64 one- and two-bedroom unit, 6-story building will include 2 stories of parking garage, a courtyard
and public areas.

The site’s current use is primarily as a surface parking located within Portsmouth’s Historic District. PHA
will incorporate landscape/streetscape amenities that will serve to reconnect the heart of the commercial
business district with its residential and institutional neighbors to the south.

The site is at the nexus of the downtown business district and institutions such as the Fire Station, District
Court, Middle School, and Library, and is located within steps of dozens of local employers and arts
venues whose employees are a primary focus of this new housing development.

The project will be owned and operated by an LLC with a non-profit PHA affiliate as the controlling
General Partner and manager. This structure is necessary for the PHA to raise capital through the
syndication of LIHTC. The PHA will enter into a Right of First Refusal to acquire the property from the

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LLC upon satisfaction of the 15-year LIHTC Compliance Period. Upon liquidation of the LLC, the PHA or
its nonprofit affiliate will purchase the property at the IRS Minimum Purchase Price and enter into a 99-
year Land Use Restriction Agreement to ensure permanent affordability

All 64 units will be affordable to those that have a low income: 70% to those at or below 60% of AMI and
the remaining to below 80%. The only deed restrictions are placed by the US Department of Housing and
Urban Development and are on 140 Court Street. Adding a CDFA lien is considered a pro forma process.

Performance Security*
CDFA places a 10-year performance lien on any property purchased, developed or renovated with tax credit funds. Please indicate
the type of performance security you will provide if you are awarded CDFA Tax Credits. CDFA reserves the right to reject any offer it
determines insufficient to ensure performance security. (2000 Character Limit)

NH CDFA is invited to place a use-restricting lien on the project to serve as performance security.

The PHA is acquiring the title for 152 Court St from an unrelated third party in an arms-length transaction.
Once acquired, there will be no existing mortgages or deed restrictions that will prohibit the CDFA from
putting a use-restricting mortgage lien on the property. Any new mortgages or restrictions will
contemplate and allow the use-restricting lien.

140 Court Street is currently owned by the PHA. There two deed restrictions of record and both contain
basically the following language:

HUD has the right “to require the Local Authority (the “PHA”) to remain seized of the title to said property
and refrain from transferring, conveying, assigning, leasing, mortgaging, pledging, or otherwise
encumbering or permitting or suffering any transfer, conveyance, assignment, leasing, mortgage, pledge
or other encumbrance of said property or any part thereof, appurtenances thereto, or any rent, revenue,
income, or receipts therefrom or in connection therewith, or any of the benefits or contributions granted to
it by or pursuant to the Annual Contributions Contract, or any interest in any of the
same…………………..”

The PHA will need to get HUD’s consent to place the use-restricting lien on 140 Court Street, if we keep
the same HUD funding mechanism in place. PHA believes that either getting HUD’s consent to place the
use-restricting mortgage or to allow a conveyance of the property to a tax credit developer controlled by
the PHA is a relatively pro-forma process and one which HUD frequently deals with to foster and
encourage the development of additional affordable housing. Given conversations we have had with
HUD, we are confident that the proposed development of affordable workforce housing on the site, which
will require a series of mortgages and/or deed restrictions, including the LIHTC Land Use Restriction
Agreement, NHHFA Mortgage, CDFA Performance Lien, etc., will be approved.

Project Timeline and Readiness

When will the project begin? When will it be complete?
If your proposal includes construction, discuss status of architectural and engineering plans and cost estimates.
What permits, approvals, agreements, or other requirements are necessary to complete the project? Have they been secured? If
not describe your strategy and timeline for securing them. (3000 Character Limit)

The Court Street Workforce Housing Development is scheduled for construction in March 2019 and
completion in May, 2020. The detailed project timeline is as follows:

Task By When
Development Concept
Explore alternate development concepts Complete
Confirm development concept and goals Complete
Site Control
Secure P&S Complete
Development Team
Select Development Consultant Complete
Select Design Team Complete
Select Counsel Complete
Select Construction Manager May 18
Organizational
Negotiate roles and responsibilities of PHA Complete
Housing Development Ltd.
Negotiate MOU between PHA and PHA Complete
Housing Development Ltd.
Form Ownership Entities Dec 18
Site Due Diligence
Survey Complete
Geotech Complete
Archeologic Research Aug 18
Phase 1 Environmental Site Assessment Jun 18
Additional Due Diligence, as required Jul 18
Design
Conceptual Design Apr 18
Schematic Design Jun 18
Design Development Sep 18
Construction Drawings Nov 18
Bid process Jan 19
Construction Administration May 20

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Permitting
Preliminary meeting – planning staff Complete
Preliminary meeting – Fire Department Complete
Historic District Commission Jun 18
Board of Adjustment Jun 18
Technical Assistance Committee review Jul 18
Planning Board approval Sep 18
Community Relations
Meetings with abutters, residents of Feaster Aug 18
Apartments and civic stakeholders
Preconstruction Services
Conceptual budget Complete
Schematic Development budget Jul 18
Due Diligence budget/value engineering if Sep 18
needed
Application Schedule of Values Nov 18
Market/Appraisal
Appraisal – As is Complete
Market analysis Jun 18
Appraisal – as complete Feb 19
Traffic
Traffic study May 18
Financing
Predevelopment loan May 18
NHHFA award Sep 18
CDFA Tax credit grant Jun 18
FHLBB Sep 18
Equity investment Sep 18
LIHTC award Nov 18
Construction Contract
Bid Subcontracts/GMP Feb 19
Execute Contract Mar 19
Construction start Mar 19
Construction complete May 20
Financial Closing Mar 19
Certificate of Occupancy May 20
100% absorption Oct 20
Permanent Loan Closing Dec 20

Public Benefit and Purpose

Community Development Challenge*

Describe the relevant community development challenge (including local and specific data if available), how the project will address
that challenge and its long-term value to the community. How is your approach unique and/or innovative? (4000 Character Limit)

Housing costs are rising faster than incomes in Portsmouth. This has been true for years. The PHA
currently has a waiting list of more than 530 individuals and families and the majority of new housing
developments in the city have been targeted to the wealthy. City, civic, and business leaders are very
concerned that this high cost of housing will irreparably damage the city's valued social and economic
vitality.

The City in 2014 completed a report on current housing conditions (attached) that identified the following:

More than half of Portsmouth’s population obtains housing by renting;

Of these renting households, more than 43% are classified as overburdened due to paying over
30% of their income on housing costs, with one-third being classified as severely burdened; and,
Rents on average have been consistently higher in Portsmouth than in other parts of the state and
Seacoast region.

The City completed its Portsmouth 2025 Master Plan in 2017 (attached). The plan’s five major themes
are: Vibrant, Authentic, Diverse, Connected, and Resilient. The Court Street Workforce Housing Project
brings together elements of each one of these themes.

Among the Master Plan’s specific findings were:

The costs of both rental and ownership housing are out of balance with wages and household
incomes: 44% of renters, 34% of all homeowners, and 28% of homeowners without mortgages
pay more than 30 % of their household incomes for housing expenses;
Based on current income distributions and housing costs, approximately 55% of residents would
be unable to affordably purchase a home in Portsmouth; and,
39% of Portsmouth residents live alone but small housing units (studio and one bedrooms)
currently comprise only about 20% of the units in Portsmouth.

Recognizing that housing affordable to its workforce achieves all of the values of the 2025 Master Plan,
the plan specifically names PHA as an obvious partner, stating: “The financial and land ownership
resources of the Housing Authority should be leveraged for future redevelopment of mixed-income and
mixed-use districts adjacent to PHA sites.” [Page 62]
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The 2025 Master Plan also includes goals that make it more likely that affordable housing will be
developed. For example, Goal 3.2 is to “Accommodate the housing needs of low and moderate income
residents,” and Goal 3.2.2 is to “Promote the development of mixed-income multifamily housing in
appropriate locations with incentive zoning provisions, such as reductions in parking requirements and
increased maximum heights.”

The lack of affordable workforce housing clearly impacts the city’s business community. In October 2017
the UNH Cooperative Extension issued its Portsmouth Business Expansion and Retention Program
report (attached). It found that business owners value the quality of life offered by Portsmouth – citing the
arts, education, culture and historic character. But a primary concern with expansion and retention of
employees is the lack of affordable housing in the city.

A letter of support for this project dated March 8, 2018 from the President of the Chamber Collaborative
of Greater Portsmouth (attached) expresses great urgency about the issue. She wrote: “As of this
afternoon, there are 1,069 open positions posted on Indeed.com in Portsmouth, with salaries ranging
from $20,000 to more than $50,000. In our Tourism Committee meeting this week, many of our
businesses expressed concern about filling their open positions before the high season begins. The low
unemployment rate, the out migration of our youth, the lack of regional transportation, and the lack of
affordable housing in and around Portsmouth are all adversely impacting our businesses and our
economy. New affordable workforce housing developments, such as that which has been proposed by
the PHA on Court Street, represent a critical investment in the social and economic health of our
community."

Affordable workforce housing is a critical community development challenge to the City of Portsmouth.

Public Benefit (RSA 162 L4)*

Describe how the project is of a public benefit and for a public purpose and how the project will contribute to the development or
redevelopment and economic well-being of target areas or populations. (4000 Character Limit)

As a location walkable to thousands of jobs in Portsmouth’s downtown, the Court Street Workforce
Housing Project is in a perfect spot to realize all of the principles of high quality urban design. The
neighborhood context, at the heart of what some call a municipal campus, between the Middle School,
District Court, the Central Fire Station and the Feaster Apartments, is a historic opportunity to achieve
unit density as a function of affordability.

The Court Street Workforce Housing Project will be a vital source of housing that is financially accessible
to those in the creative economy, the public sector, the many nonprofits based in the city, and the small
businesses that make up the majority of employers in Portsmouth (88% of businesses in the city employ
ten or fewer people). [2025 Master Plan, p. 59] This location is also host to a COAST bus stop, providing
public transportation to other shopping, schools, businesses, educational opportunities, and services
throughout the Seacoast region.

The Court Street Workforce Housing Project will be affordable to those at or below 80% of AMI and 60%
of AMI. In New Hampshire, affordable workforce housing is typically defined as targeted to households
earning less than 60% of the median area income ($42,840 for 2-person household, 2017). This
demographic will be the primary target for the project, comprising at least 70% of the total units to be
constructed, well above City of Portsmouth standards.

However, we also believe that communities thrive when they are socially and economically diverse and
that the affordable housing need in high-cost markets like Portsmouth extends beyond the 60% AMI
designation which governs federal capital and rent subsidies. This is why 30% of the units will be
affordable to those between 60 and 80% of AMI.

In addition to providing critically-needed workforce housing, the development itself will add value to the
site. Located between the downtown business district and the more institutional anchors located between
Court Street and South Mill Pond, the design will extend the historic and visually pleasing streetscape
southerly, reconnecting the heart of the business district to its neighbors; neighbors that include the
historic Portsmouth Fire Station, Portsmouth District Court, the Portsmouth Middle School, the
Portsmouth Library, and the nationally recognized African Burying Ground Memorial. The site is located
within steps of dozens of local employers, including hospitality and public services institutions, as well as
arts venues such as the Seacoast Repertory Theater, the Music Hall, 3S Art Space, the Prescott Park
Arts Festival, Strawberry Banke Museum and others whose employees are a primary focus of this new
housing development.

Outcome Measures*
What are the goals and measurable outcomes of your project, and what is your methodology for tracking them? How will success
be measured or evaluated. (4000 Character Limit)

The goal of Court Street Workforce Housing is to address the critical and well-documented need to
increase the amount of workforce housing in the City of Portsmouth. Specific, measurable outcomes of
the project are:

1. Construction and full rental of 48 one-bedroom and 16 two-bedroom units affordable to low-
income residents of Portsmouth;
2. Forty-five units will be allocated to residents below 60% of AMI;
3. Nineteen units constructed and rented affordable to those at or below 80% AMI;
4. Commitment of 99 years of affordability secured through financing agreements;
5. Affordable housing in the City of Portsmouth increased by 7%;
6. Eighty-five new jobs created; and,
7. Two permanent new jobs retained as a result of the project.

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Where applicable, enter the totals of the proposed project or program outcomes.

Total Housing Units

64
Created:

Type of Housing: Family, Permanent, Other

Housing Affordability
99
Period:

Total number of persons

120
served:

Total number of low

120
income persons served:

Total number of new jobs

85
created:

Total number of jobs

2
retained:

Total number of square

feet of
commercial/community 64000
facilities space
developed:

Community Input and Support*

What process was used to bring community members together to plan this project? Has this project been the subject of any public
hearings or forums? Explain with relevant detail. (2000 Character Limit)

In 2016, the Mayor created a new Housing Committee and appointed current and past PHA Board
members to the Committee. The goal of this Committee was to study ways the City could incentivize the
development of more affordable housing. As part of the development of its 2025 Master Plan, Portsmouth
published a housing report in 2014, and the PHA was a part of that process. When the city’s 2025 Master
Plan was released in 2017, PHA was cited as a critical partner that can provide both the land and know-
how to increase the amount of workforce housing in the city.

PHA was a part of the eight-months of deliberative discussion about housing in Portsmouth facilitated by
Portsmouth Listens. Their Housing Report, released in December 2017, found a need for housing
affordable to workers in the community, a commitment to economic diversity, and a recognition that
zoning that regulates density and building height will have to change in order for more housing to be
constructed.

PHA also hosted a design charrette convened by the Workforce Housing Coalition directed at its Gosling
Meadows development. The focus was how to increase affordable and market rate housing and create
additional commercial or community uses on the property. This opportunity remains under study by the
PHA as a means to advance its 2017-2020 Strategic Plan major goal to grow Portsmouth’s supply of
affordable housing.

The PHA’s Executive Director Craig Welch presented about the project to the Economic Development
Commission and Chamber of Commerce, the Portsmouth Herald Editorial Board, Portsmouth Listens
Study Circles and the residents of the adjacent Feaster Apartments. Welch is serving as the keynote
speaker at the Workforce Housing Coalition of the Greater Seacoast’s Annual Meeting in March and will
host additional educational and input sessions with the general public.

Community Partnerships*

Provide the names and roles of any other organizations that will have involvement in the operation of this project. (2000 Character
Limit)

The Court Street Workforce Housing Project will be owned by a nonprofit affiliate of Portsmouth Housing
Authority until the 15-year LIHTC Compliance Period is complete. At that time, PHA or its nonprofit
affiliate will assume ownership.

The Portsmouth Housing Authority will manage the Court Street Workforce Housing Project from the day
it opens. To do so it will hire two full-time employees: a property manager and a maintenance manager.

Portsmouth Housing partners with city and regional nonprofit and government social service agencies
that provide services to residents in its housing. A partial list includes:

The City of Portsmouth

Foundation for Seacoast Health
Families First of the Greater Seacoast
United Way of the Greater Seacoast
COAST
NH SPCA
Crossroads House
Seacoast Public Health
Rockingham Community Action
Crotched Mountain Community Care
Dover Housing Authority
Greater Seacoast Coalition to End Homelessness
Portsmouth Regional Hospital
Region 6 Integrated Delivery Network
Rockingham Community Action

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Safe Harbor Recovery Center
Salvation Army
Seacoast Mental Health Center
Southeastern NH Services
Operation Blessing
New Frontiers Church
Seacoast Adopt-a-Block
Workforce Housing Coalition
St. John’s Church
New Franklin School
Toys for Tots
Empire Beauty School
Great Bay Community College
Timberland
Seacoast Women’s Giving Circle
Women Aid
Federal Savings Bank

A key goal of PHA’s 2017-2020 Strategic Plan is to deepen its connectivity to agencies that serve its
residents, including working together to find funding for programming.

Other Community Benefits

Downtown Revitalization*
Please describe whether your project is located in a downtown and may impact downtown revitalization plans for the community, if
applicable. (2000 character limit)

Portsmouth Listens’ 2017 Report on Housing includes this from the business member participants:
“Housing is a very serious problem for small business owners and their employees. The problem is
availability and affordability. Small businesses do not have enough revenue to pay substantially higher
wages necessary for them or their employees to afford to live here (rent or own). If one cannot live in
Portsmouth, then they must spend time and money getting here every day. As a result, there is a high
turnover of employees who will take slightly lesser paying jobs if they can live where they work.” [Page 7]

The Court Street Workforce Housing Project is located within steps of thousands of downtown jobs and
would meet the need of these area businesses concerned about housing for their workforce.

The City’s 2014 Report on Housing noted that while Portsmouth’s population growth overall is just 2%,
the two age groups growing in population are young adults ages 20-34 and seniors aged 65+. Smaller
apartments close to downtown will benefit both.

Portsmouth businesses cite the lack of affordable housing as a key deterrent to business expansion and
retention of employees. They note that younger employees, many that are young adults just entering the
job market, seek downtown living with walkable commutes. This population is an ideal match for the retail
and dining establishments that fill downtown.

The location is home to a COAST bus stop, making accessible by public transportation Great Bay
Community College, located 3 miles from downtown, and UNH, located 10 miles from downtown.

The current use of the site is primarily as a surface area parking – not a good use of this one-acre space
one block from historic Market Square. A thoughtfully designed development that references the historic
nature of the neighborhood and that achieves density in downtown, is a much more effective use of this
site.

Sustainability and Energy Use*

If your project involves rehabilitation work or new construction, please summarize any plans to make the property more energy
efficient or add renewable energy. If this is not part of your project scope, please describe whether you have completed an energy
audit and any of the recommendations. (2000 Character Limit)

The PHA’s approach to energy efficiency and sustainability will be guided by the nationally recognized
Enterprise Green Community Criteria Checklist, (found in Other Attachments) and by the following
development principles:

Protecting Land and Ecosystems: The compact, dense development (60+ DU/acre) makes efficient
use of the land, thereby protecting natural resources. The adjacency to public transit reduces reliance on
cars and, therefore, pollution of the environment. The site plan is designed to minimize paved surface
areas and the attendant risk of urban runoff.

Using Natural Resources Wisely: The development plan complies with EPA Energy Star guidelines
and its architectural design will meet or exceed state and federal code requirements relative to building
materials, conservation and energy use. The PHA aspires to build the development in full conformance
with the attached Enterprise Green Communities Criteria Checklist.

Providing Transportation Choice: The location of the Proposed Development on a regional bus route
and within steps of hundreds of entry-level employment opportunities and world class social and
recreational facilities will minimize reliance upon private ownership of automotive vehicles and promote
increased transportation choice.

Promoting Clean Energy: The Proposed Development will include energy conservation measures
exceeding code requirements and complying with all applicable Energy Star standards. In addition, the
building will be designed to conform to the standards established for certification under the Enterprise
Green Communities Criteria Checklist.

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Project Information and Public Benefit Attachments

Photos and/or renderings

2018-03-07_Court Street Development_HDC_WS2_Finalpdf.pdf
of project property

Map of project location or

Court Street workforce housing map 1.pdf
area

Evidence of planning,
zoning, and/or any other
state or local approvals
(if applicable)

Evidence of site control

(Purchase and Sale or
signed p&s fully executed.pdf
Lease Agreement) (if
applicable)

Independent Property
appraisal completed
Appraisal-152 Court St.pdf
within the past 5 years (if
applicable)

Asset Management Plan 20 yr income & exp w capital improvements.pdf

Construction schedule
(for construction
projects) or
Court St Workforce Dev Schedule.pdf
Implementation schedule
(for service/non-
construction projects)

Letters, news articles,

studies in support of
project (Use “other
city-of-portsmouth-portsmouth-master-plan-adopted-2-16-2017.pdf
attachments” for
additional
documentation)

Historical Information (if

applicable)

Energy-related
documentation (if Court Street Sustainable Development Principles.pdf
applicable)

Development and Fundraising Capacity

History with CDFA (all programs)*

Provide all funding history with CDFA. Include program, amount of grant/loan and current status. (2000 Character Limit)

Portsmouth Housing Authority does not have a funding history with CDFA.

Other Public Investment*

Has your organization received or administered grant funds or loans from other sources in the past five years? Please list program,
amount of grant/loan, current status. (1000 Character Limit)

Portsmouth Housing Authority and its nonprofit affiliate, PHA Housing Development, Ltd., have extensive
experience receiving and administering grants and loans from other sources. Since 2013 the two
organizations have received and administered $26,505,520 in grants and loans. Funding sources include
HUD, CDBG grants and loans, private funders, and the US Department of Education. All are current
sources of funding. A five-year accounting of these grants and greater detail on their current status may
be found in Other Attachments.

Management Team*

Describe your organization’s current staff and capacity to carry out your proposed project. As applicable to your project, please
describe who will be responsible for construction oversight, program development and/or expansion, reporting and other
compliance activities. In addition to staff, what roles will your Board of Directors, volunteers, consultants and others have in the
implementation of the project? Is there a budget for this? (2000 Character Limit)

PHA and PHA Housing Development Ltd. will serve as project developers. Craig Welch is Executive
Director of both organizations, bringing 20 years of private and nonprofit development and financial
management to the task. Valerie Labrie is the PHA Director of Finance, responsible for the fiscal

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operations of this $7.6 million agency with $83 million in assets. Valerie manages the complex budgeting
and reporting for the PHA’s multiple programs.

To support development of the project, PHA has contracted with the following:

CJ Architects, as lead design professional. Led by Carla Goodknight, CJ Architects is a Portsmouth

based design firm specializing in high quality urban infill developments, including Parkside Place and 233
Vaughn Street in downtown Portsmouth.

Development Synergies LLC as development consultant. Peter Roche (President) has served as
founding director of two of NH’s largest and most successful non-profit affordable housing firms and has
facilitated the development/preservation of more than 5,000 units of multifamily housing across the
northeastern and Midwestern US.

Sheehan Phinney, lead transactional counsel. Kenneth Viscarello is one of NH’s most experienced and
creative attorneys with a high degree of technical specialization in the field of affordable housing,
construction law, and tax credit syndication.

Bosen & Associates, local permitting and PHA counsel. Highly regarded Portsmouth attorney John A.
Bosen is both a highly skilled real estate lawyer and a civic leader with deep ties to the Portsmouth
community.

Ambit Engineering, civil engineer. Led by John Chagnon P.E., Portsmouth based Ambit Engineering will
provide state of the art civil engineering and permitting services.

A construction manager will be selected by May 2018. Once complete, the PHA will manage the
development, bringing its 59 years of property management to the task.

Fundraising Experience *
Describe your organization’s recent experience with capital campaigns. Who was in charge? How much was raised? Was the
fundraising goal met? What percentage of donations came from businesses? What was the average donation size? (2000
Character Limit)

As an independent special-purpose local government entity funded by the federal Department of Housing
and Urban Development, the PHA does not have a need for raising private funds, but does do a limited
amount of fundraising through its 501(c)(3) subsidiary. All funds raised through PHA Housing
Development, Ltd. via partnerships, grants or corporate sponsorships are directed at programming that
support residents. The PHA also utilizes PHA Housing Development, Ltd. for raising capital for its LIHTC
housing developments.

To that end, the PHA will hire a consultant to manage its campaign to sell the awarded CDFA Tax Credits.
Here, the effort will benefit from the PHA’s well-connected leadership team and Board of Commissioners
who are committed to utilizing their own networks to achieve full sale of the awarded tax credits.

Fundraising Plan - Project Specific*

What is your plan for marketing tax credits to businesses? Have any business donors expressed an interest in purchasing CDFA tax
credits from you if you are awarded? If so, how much?
Does your organization have the capacity to raise tax credits from businesses outside of your region? If you are hiring a consultant,
how much have your budgeted? (2000 Character Limit)

The PHA is confident it will succeed in selling its entire tax credit award for the following reasons:

The need for affordable housing has been extensively documented by the city and its business
community.
The city has made increasing affordable housing a primary goal of its 2025 Master Plan.
The density of this development is in character with the density of housing in the city.
Portsmouth has a vibrant business community with an appetite for tax credits.

To sell the CDFA tax credits, The PHA will utilize the robust networks of the civic leaders that are
Commissioners and serve on the Board of Directors of the PHA Housing Development Ltd.

To carry out the tax credit sales, PHA Housing Development, Ltd. will contract with Betsy McNamara of
Full Circle Consulting. Betsy brings substantial experience in the sale of tax credits through such clients
as The Friendly Kitchen, Concord’s Downtown Revitalization Project, and MoCo Arts. PHAHD, Ltd has
budgeted $10,000 for tax credit sales, a sum which includes Betsy’s consulting fee, the creation of
support materials, the cost of mailings and promotions, and the cost of meetings.

The strategy to sell the tax credits is:

1. Identify 5 to 6 community members willing to purchase tax credits through their own companies
and connect with other businesses to sell the tax credits.
2. Create a compelling case support in both printed and online versions.
3. Host an initial meeting with the community members and interested businesses. Present the
project and its positive impact on the business community.
4. Follow up on interested businesses to close the sale.

To date Piscataqua Savings Bank and Jay McSharry, owner of multiple Portsmouth restaurants, have
documented interest in purchasing tax credits. Organizational leadership is in constructive conversations
with Provident Bank and other businesses and expect more commitments in the near future.

Project Funding
Why does your project need tax credit funding? Are you pursuing other sources of financing? If so, what other sources are you
pursuing and what is the current status? (2000 Character Limit)

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Although we are in constructive conversations with all prospective sources of debt and equity capital for
the proposed development, the application timetable does not allow for the demonstration of formal
commitments prior to submission of final applications, all of which are scheduled in the fall of 2018. A
brief timetable of anticipated financing commitments is summarized as follows:

Funding Timeline
Funding Source Application Commitment Closing
Predevelopment PHA/PHA Development LTD Complete Complete
Land PHA Donation/Lease Pending HUD Pending HUD Mar 2019
approval approval
Grant NH CDFA tax credits Mar 2018 Jun 2018

LIHTC NHHFA Sep 2018 Nov 2018 Mar 2019

Construction NHHFA Sep 2018 Nov 2018 Mar 2019
Financing

Permanent NHHFA Sep 2018 Nov 2018 Mar 2019

Mortgage Loan
Grant FHLBB Sep 2018 Dec 2019 Apr 2019
Equity Investment NNE Housing Investment Fund Sep 2018 Nov 2018 Apr 2019
Subordinated Debt NHHFA Sep 2018 Nov 2018 May 2019

Letters of Interest/Support from key sources of capital are attached hereto. The requested CDFI Tax
Credits are essential to eliminating financial gaps in the development, and thereby enabling access to the
remaining sources of capital.

Project Development, Fundraising and Financial Capacity Attachments

File
Attachment Description File Name Type
Size
PHA Commissioner and
PHA Housing CommissionerandBoardBios 480
List of or link to Board of Directors (including affiliation) pdf
Development Ltd Board 3.2018.pdf KB
Bios
Letters of Interest in 366
Letters from committed donors Tax credit LOI's.pdf pdf
purchasing tax credits KB
Financial information from the last two years, inclusive
of most recent fiscal year end, including:
PHA Housing
PHA LTD Tax Return 2.7
Audit report and/or most recent form 990 Development, Ltd. 2016 pdf
2016.pdf MB
990
If an audit or 990 are not available please provide
management-prepared financial statements including profit
and loss and balance sheet
PHA Housing
Development Ltd Budget LTD current financials Jan 936
Financial Interim Statements Review from current fiscal year pdf
to Actual and balance 2018.pdf KB
sheet Jan 2018
Project Specific Development Budget
Building Project (Use appropriate CDFA-provided Excel file Court Street Housing
23
only. Substitutes will not be accepted. Make sure sources Project Development CDFA Sources Uses.xlsx xlsx
KB
and uses balance.) Budget
Program Development Project (Use appropriate CDFA-
provided Excel file only. Substitutes will not be accepted.)
Project Specific Operating Budget
Housing Project Operating Finances and Budget (Use
PHA Housing CDIP App - Operating
appropriate CDFA-provided Excel file only. Substitutes will 35
Development Ltd, pro Budget - Review Version xlsx
not be accepted. Make sure sources and uses balance. KB
forma operating budget (LTD) REV 03-06-18.xlsx
Please include assumptions.)
Service Organization Operating Finances and Budget (Use
appropriate CDFA-provided Excel file only. Substitutes will
not be accepted. Please include assumptions.)
Non-tax credit funding
Timeline for securing non-tax credit funding and Commitment Funder timeline and 315
timeline and letters of pdf
Letters funding already committed (if available) LOI's.pdf KB
interest
Planning and/or feasibility study performed for this project (if
applicable)

Other Attachments

File
File Name Description
Size
2017-2020-Strategic-Plan-BOARD-COPY-Adopted- Portsmouth Housing Authority 2017-2020 Strategic Plan 316 KB

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12.14.16.pdf (316 KB)
BREPortsmouthReport10.18.17.PDF (2.9 MB) Portsmouth Business Retention and Expansion Report 2.9 MB
CDIP App - Operating Budget - Review Version (PHA) REV
PHA pro forma operating budget 37 KB
03-07-18.xlsx (37 KB)
Copy of PHA LTD SCHEDULE OF GRANT AWARDS REV 03- Detail on other grants and loans managed by PHA and
81 KB
06-18 (003).pdf (81 KB) PHA Housing Development, Ltd.
Court Street Letters of Support.pdf (643 KB) Letters of Support 643 KB
Court Street Workforce Housing Editorials.pdf (143 KB) Portsmouth Herald Editorials 143 KB
housing-reports-12_12_17-Portsmouth-Listens.pdf (7.5 MB) Portsmouth Listens 2017 Housing Report 7.5 MB
City of Portsmouth 2014 Housing Existing Conditions
Housing_Existing_Conditions_2014.pdf (2.2 MB) 2.2 MB
Report
Kane - letter of interest.pdf (186 KB) Donor support letter 186 KB
MOU LTD-BOC.pdf (998 KB) MOU between PHA and PHA Housing Development LTD 998 KB
PHA 2016 Audit.pdf (735 KB) PHA most recent audit 735 KB
PHA Consultant Bios.pdf (125 KB) Consultant Bios 125 KB
PHA Staff Resumes and Bios.pdf (612 KB) PHA Staff Resumes and Bios 612 KB
Piscataqua SB - letter of interest.pdf (226 KB) Donor support letter 226 KB
Portsmouth Housing Authority 2017 Entity Wide Balance Sheet
PHA 12-31-2017 Balance Sheet 56 KB
Summary.xls (56 KB)
Portsmouth Housing Authority 2017 Entity Wide Revenue and
PHA 12-31-2017 Revenue & Expense 72 KB
Expense Summary.xls (72 KB)
City of Portsmouth Assessment for 140 and 152 Court
Propety Assessment.pdf (1.5 MB) 1.5 MB
Street properties
Provident - letter of interest.pdf (309 KB) Donor support letter 309 KB

Certification

I certify that I am one of the persons named above, and am authorized by the applicant organization to submit this application. I
certify that all statements are true and accurate to the best of my knowledge.

I acknowledge this application is being submitted with the full knowledge and approval of the organization's Board of Directors and
that the organization will comply with:
• New Hampshire conflict of interest laws as defined by RSA 7:19-a and RSA 292:6-a;
• CDFA’s Privacy Policy by which you acknowledge all information and documents created, accepted or obtained by, or on behalf of,
CDFA are potentially subject to disclosure in compliance with RSA 91-A, New Hampshire’s Right-to-Know law.

I further acknowledge that should my organization be awarded CDFA Tax Credits, CDFA will require a ten-year performance
security instrument be placed on my organizations assets concurrent with contract signing, and prior to disbursement of Tax Credit
proceeds to my project.

Certification* Yes
Full Name of Certifying
Craig Welch, Executive Director
Officer*
Click Edit above to choose and attach the certification form.

CEO/Executive
Director/Board Officer ED Cert. Form for PHA.pdf
Certification Form

Confidential Attachments

Staff Research Documents

TC-Final Board Memo

Attachment Description File Name Type File Size

TC Final Board Memo null

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