Developer expands plans to build affordable apartments in downtown Manchester

Sep. 7—A California company hopes to expand its plans to bring more affordable apartments to downtown Manchester.

In April, Lincoln Avenue Capital, based in Santa Monica, received variances from the Zoning Board of Adjustment in April to tear down the old police station at 351 Chestnut St. and construct a five-story building with up to 110 units and a parking garage. Another four-story building with up to 50 units will be built across Merrimack Street in an underused parking lot.

Along with the 160 units, the company is now proposing to build another 5-story building at 80 Merrimack St. with 55 units. The property will include both affordable and workforce housing units.

Another variance will be needed for the 55 units while about 22 are allowed by right, according to the application. The zoning board will hear the plans at 6 p.m. Thursday.

Lincoln Avenue says the density of affordable and workforce housing is in line with the city's master plan.

"The property is surrounded by a mix of uses, multi-level buildings and amenities that are complementary to the affordable housing density this project proposes," the application reads.

The location provides pedestrian access to employment, the city library, parks and nearby shops and entertainment, according to the application. The property will include 15 parking spaces.

Scott Shaw, vice president and regional project partner at Lincoln Avenue, said the 80 Merrimack St. property became available in the fourth quarter of 2021 and will be incorporated into the development plan. The building on the property will be torn down.

"The need for affordable housing is significant in Manchester as 49.6% (12,585 renter households) in the primary market area of our development spend more than 30% of household income on housing and are 'overburdened' per the threshold set by the Department of Housing and Urban Development," he wrote in an email to the Union Leader.

The workforce units will serve individuals earning up to $49,000 annually and three- or four-person households making up to $69,930.

The affordable units will serve individuals earning up to $37,560 annually and three- or four-person households earning up to $53,580, according to the application.

The properties will include a number of project-based Section 8 vouchers, "which provide housing to an underserved population earning 0 to 30% of the area median income, considered extremely low income," the application reads.

Lincoln Avenue will "foster partnerships on the municipal and state level" through utilization of state funds for bonds, 4% low housing tax credits, federal Housing Trust Fund money through New Hampshire Housing, federal HOME program and American Rescue Plan Act money.

Shaw said final plans for the two other projects are in the process of being submitted to the city with hopes for funding to come through in the second quarter of 2023. After closing on the property, construction will begin.

Lincoln Avenue Capital has more than 50,000 residents in more than 100 properties across 18 states, according to its website. This will be among the company's first in New England.