relative to residential property subject to housing covenants under the low income housing tax credit program.

New property tax option for affordable landlords

Beginning July 1, 2025, New Hampshire offers a property tax option for multifamily rentals under federal low-income housing tax credit covenants. Owners can choose annual taxes equal to 10% of actual rental income plus other income. The choice lasts for the next 10 tax years while the housing covenant remains in place. During that period, the property cannot receive an RSA 72:23 property tax exemption. Properties under construction on April 1 of the tax year are ineligible. Owners must notify their municipality by October 1 before the tax year, using the state revenue department’s form. A recorded federal program covenant or another qualifying New Hampshire Housing Finance Authority covenant proves eligibility. By April 15 each year, owners must submit required information on state forms, including prior-calendar-year financial statements audited by an independent CPA. For partial-year records, assessors estimate a full year using those records and the housing authority’s projected first-full-year operating budget. Valuations exclude acquisition and construction costs, plus intangible assets such as qualifying subsidies, grants, below-market financing, and tax credits. Other income includes recurring property income, such as laundry and vending receipts, and interest on restricted reserves. Commercial space counts at market rent, adjusted for legal, market, or covenant restrictions. Common areas mainly serving residents receive no separate assessment or assumed income. An owner’s tax may be lower or higher than under the regular method.