« Nashua’s population is diversifying and with it comes income disparity - white & Asian
households earn 2.5+ times more than black and Hispanic/Latino households
* One- and two-person households are driving growth - these groups brought in 1,500 new units
from 2013-2018 and are expected to have the highest need in the next 5 to 10 years
* Household income for renters is growing at the highest income levels - higher income renters
are driving rental prices upward as they can afford rents at the tap of the market, they are also
squeezing middle income renters as there is limited housing stock te serve this need
e Nashua’s housing stock is predominately single-family — comprising 86% of the residential land
area
* Home values and rents are rapidly rising - (19% increases for both over the past 5 years)
« Downtown should be a focus area —a balanced approach is required to introduce new market
rate and affordable housing
Starting the Fund: The City currently receives a $10,000/year payment from Nashua Plaza Housing
Associates, LP (Clocktower); this payment is in relation to an Agreement dated November 25, 1998. The
annual payments are not related to the HUD HODAG Ioan, nor any municipal real estate tax or
assessment. The annual payment shall be made through September 7, 2027, at which time a
termination fee of $1,290,000 is due, which may be extended. The intent was to encourage Clocktower
to retain the 29 units of affordable housing beyond the expiration date.
Nashua Plaza Housing Associates recently remitted a $30,000 payment, reflecting three years that shall
be used to start this affordable housing trust fund, along with the future annual payments.
Maintaining the Fund: The Clocktower payment alone is not enough; the City and its partners must
identify additional funding sources.
Administration of the Fund: The vast majority of HTF’s are managed directly by the entity creating the
trust, typically housed in the department with the most experience operating other housing programs.
For Nashua, this would be the Urban Programs Department (UPD). The UPD has a long history of
managing affordable housing programs, long-term restrictions and complex portfolios. As the fund is
developed and deployed, a better understanding of the volume and monitoring requirements will be
attained. The City can assess the specific level of staffing and administration options as the fund is
populated over the next one to two years and then reevaluate. The UPD would create and oversee the
application process and oversee long term compliance.
At this time the Community Development Division recommends the adoption of a new Affordable
Housing Trust Fund as detailed in R-21-118 with the funds from the Clocktower Agreement, described
above, to be appropriated into the fund. Over the next year the Community Development Division will
work with the City and community partners to create a more detailed structure and administration of
the HTF, as well as identifying other revenue sources.
