By statute, the board is composed of four representatives from community development organizations, two from small business, one from organized labor, one from employment and education, two from the private financial community, and the Commissioner of the NH Department of Resources and Economic Development or his/her designee.
CDFA administers $30 million in funding resources, which includes a combination of state tax credits, federal Community Development Block Grants, and Neighborhood Stabilization funding. CDFA supports affordable housing and economic development activities that benefit low- and moderate-income citizens. CDFA supports these initiatives by providing project funding, technical assistance, and financial support to nonprofit community development organizations, counties, municipalities, cooperatives, and other volunteer citizens groups that are engaged in these activities. CDFA is unable to assist a for-profit business directly, but can work with a nonprofit partner in providing these services.
CDFA has had a long and unique history of raising funds and providing creative financing to community and economic development projects and programs in New Hampshire. From the early history of being expected to raise funds by accepting donations and selling stocks; to legislation that was created and then terminated three years later that enabled CDFA the unique ability to grant state tax credits for community development projects; to new legislation and establishment of the Community Development Investment Program; to the creation of the New Hampshire Main Street Center; to administer the New Hampshire Community Development Block Grant Program; and most recently the responsiblity of creating and administering the Neighborhood Stablization Program.
Tax Credit Program
The Tax Credit Program was created when new legislation became effective on July 1, 1999. The new legislation, RSA 162-L:10, enables CDFA to accept up to $5 million in each state fiscal year in donations of cash and property for approved CDFA projects and programs in exchange for $3.75 million in state tax credits. In essence, investors in a project receive a 75% tax credit based on the value of the contributed investment. This tax credit may be applied against the business profits tax, business enterprise tax, and the insurance premium tax.
CDFA charges a fee to the funded nonprofit entity that is equal to either 15% of the value of the real estate or 20% of the cash. The fee is mainly used to cover CDFA's operational expenses and occassionally, when funds are available, to support other community development initiatives throughout New Hampshire.
NH Main Street Center
The New Hampshire Main Street Center (NHMSC) was established in 1996 as a separate and private, statewide delegate agency of CDFA, dedicated to empowering communities within the state to maintain, strengthen, and revitalize the unique physical, economic, historical, and cultural characteristics of its own Downtown centers. The Center addresses the problems of our central business districts and village centers with the National Main Street Center's proven Four Point Approach™. It was governed by a 21-member Board of Directors.
In 2007, after a comprehensive evaluation of the program and its funding sources, it was determined that CDFA would offer training opportunities to those focusing on issues affecting downtowns and would provide project funding through its other existing programs.
Community Development Block Grant Program
In 1974, Congress passed the Housing and Community Development Act (Public Law 93-383) creating the federal Community Development Block Grant Program (CDBG), whose objectives are: “to benefit primarily low and moderate income people; to eliminate slums and blight; and to eliminate threats to public health and welfare.” The CDBG Program was administered by the Department of Housing and Urban Development (HUD) until 1983 when the individual states took control of the Small Cities Program, which is now the CDBG Program. The NH Office of State Planning administered the program until July 2003, when it was transferred to the Community Development Finance Authority. CDFA receives the CDBG money from HUD and controls the distribution of the CDBG funds to non-entitlement municipalities.
Eligibility Requirements
CDFA supports affordable housing and community and economic development activities that benefit low- and moderate-income citizens. CDFA supports these initiatives by providing project funding, technical assistance, and financial support to nonprofit community development organizations, municipalities, cooperatives, and other volunteer citizens groups that are engaged in these activities.
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