Nashua Soup Kitchen Gets $625K Building Fund Boost

CONCORD - Nashua's Soup Kitchen and Shelter is among 12 key organizations and projects chosen to benefit from more than $4.1 million through the Community Development Finance Authority Tax Credit Program.

The CDFA Board of Directors has approved the funding – in the form of state tax credits – for projects from Nashua to Bethlehem and Lisbon to Portsmouth.  The tax credits allow for more than $20 million in leverage for these projects. 
“The success of the CDFA tax credit has become our greatest challenge. This is the first year in our history in which we’ve had to turn down more projects than we’ve funded and the majority of those project approved were awarded at a lower level than requested,” said Board Chair Janet Ackerman. 
Some of the awards made include funding for the Concord downtown revitalization project; the relocation and expansion of the Nashua Soup Kitchen; an emergency shelter for homeless families in Manchester; and upgrades to distressed affordable housing units in the Lakes Region. Grants made to these organizations are tax credits, not cash.
Companies that donate to these CDFA-approved projects can get a 75 percent business tax credit against their contribution. This credit can be applied against the New Hampshire business profits, business enterprise, or insurance premium taxes. The organizations awarded state tax credits are responsible for raising donations in that amount from for-profit companies that have a New Hampshire state tax liability.  
It provides a powerful incentive to stimulate private investment in community development ventures. 
“This allows the businesses an unprecedented opportunity to direct their support for these efforts in their own communities. The tax credit allows them to maximize their financial impact that a cash donation could not,” said Kathy Bogle Shields, CDFA Executive Director.   
“Given the financial pressures on the organization this year, the Board feels good about the community development projects they were able to fund. We feel these initiatives have the greatest chance of affecting positive change in their communities,” said Ackerman.
More than $12 million in requests were made; the majority of winning projects had their requests significantly cut. 
“Many of these projects would be stuck without the participation of CDFA. The tax credits are an important, desired part of their fundraising efforts,” said Shields. By statute, CDFA tax credit awards are capped $5 million a year. The balance of this year’s $4.1 million allocation will cover funds rolled over from the previous year. Despite the explosive growth in participation from nonprofits and financial commitments from New Hampshire businesses, the tax credit cap has not been raised since 1999. A State Senate bill to increase the cap on tax credit awards to $8 million remains in committee.  
About CDFA:
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 CDFA and its programs visit www.nhcdfa.org or call 603-226-2170.  
The following projects received tax credits for FY14/FY15 from CDFA:
 

• A $625,000 tax credit award will go to the Nashua Soup Kitchen’s campaign to acquire a new 14,000 square foot facility. The move will triple the size of the soup kitchen, allowing greater seating and service for the 7,300 people helped annually by the organization.

• Easter Seals NH has been awarded $250,000 for the Farnum Center, a substance abuse treatment center which will provide services to more than 2,400 people annually. The tax credit award will help Easter Seals NH purchase the Queen City facility they are currently leasing, reducing the center’s operating costs.

• A tax credit award of $500,000 will go to the Family Place Center, an emergency shelter designed to help homeless families and children. Run by Families in Transition, the project will partner with three other community agencies and serve as the only homeless resource center for families in Manchester and surrounding towns.

• The City of Concord has been awarded $700,000 toward the Complete Streets Improvement Project.  The credits will help the City privately fundraise a portion of the initiative to revitalize downtown and attract new businesses and market-rate housing to Main Street.

• The Laconia Area Community Land Trust has been awarded $500,000 in tax credits for construction activities through their Portfolio Strengthening Initiative. The goal is to upgrade 60 units of affordable family rental housing throughout Laconia, many of which are showing significant wear and tear.

• A tax credit award for $175,000 will go to the Boys and Girls Club of North Country to purchase two school buses for transporting area children to the clubhouse, camp, and other activities. Funds from the award will also go towards energy efficiency upgrades to their Lisbon facility, lowering operating costs.

• Bethlehem’s Colonial Theatre will receive $75,000 in tax credits to purchase and install new digital projection equipment. With Hollywood studios transitioning from film to digital, theatre would no longer be able to show movies, and have a negative economic impact on Bethlehem’s downtown district.

• The Music Hall will receive $115,000 in tax credits to digitize its film projection and sound equipment. Movie studios are phasing out 35mm films and without the upgrades, events – such as the NH Film Festival – and downtown economic activity would be greatly affected.

• An award of $250,000 will go to the construction of the YMCA Exeter project. The new 30,000 square foot wellness center will offer childcare, exercise options, and community meeting space for up to 7,700 people annually.

• The NH Community Loan Fund has been awarded $312,500 in tax credits for its Individual Development Accounts (IDA) program. The initiative allows low- to moderate-income residents to contribute money to a savings account, which is then matched at three-times the amount by the Community Loan Fund. Saved proceeds can be used for home or car purchases, or further education.

• The Regional Development Corporation Capacity Fund will receive tax credits totaling $250,000. The fund, co-financed with a Community Development Block Grant from CDFA, will provide capital for the ten nonprofit RDCs throughout the state working to create jobs and economic opportunities of low- and moderate-income residents in their areas.

• Tax credits totaling $337,500 will be set aside for the Housing Innovation Fund. This initiative, financed by CDFA, will grant tax credits to nonprofit housing organizations that demonstrate innovative solutions to affordable housing issues in their communities.