City secures 125 new affordable housing units downtown

In a recent government meeting, officials discussed the challenges and opportunities surrounding a proposed affordable housing project in downtown Manchester. The project, initially intended to include a mix of market-rate and affordable units, faced significant hurdles due to rising construction costs and interest rates, which rendered the original financing unviable.

The city had been negotiating to reduce the costs associated with a planned 500-600 space parking garage, but these efforts were unsuccessful. As a result, NeighborWorks stepped in to propose an all-affordable housing project, which will consist of 125 rental units and 12 workforce housing condos. This initiative aims to address the pressing need for quality affordable housing in the downtown area, which has seen a surge in market-rate developments but lacks sufficient affordable options.

Officials emphasized the project's strategic location, highlighting its proximity to public transit, shops, and employment opportunities. This accessibility is crucial for residents who may not have reliable transportation. The discussion also pointed out that while there has been a notable increase in market-rate apartments, the city has not seen a corresponding rise in affordable housing units.

Concerns were raised about the viability of commercial spaces on the ground floor of the new development. Officials noted that previous attempts to establish commercial activity in the area had not been successful, and any potential turnover in these spaces could financially burden the affordable housing units. The consensus was that while some small businesses might thrive, the demand for commercial space on Pearl Street remains uncertain.

Overall, the meeting underscored the city's commitment to enhancing affordable housing options while navigating the complexities of urban development and economic viability.