Manchester aldermen accept housing grants; approve $205,500 transfer to general assistance fund

The Manchester Board of Mayor & Aldermen on an evening agenda accepted two grants from the New Hampshire Department of Business and Economic Affairs and approved moving $205,500 from a housing production municipal grant into the city’s general assistance rentals account.

Planning and Community Development Director Jeff Belanger notified the board that the awards included $116,753 from the Housing Infrastructure Municipal Grant Program for CIP 6 11 3 25 2 31 (Merrimack Street affordable housing program) and the $205,500 housing production municipal grant. Belanger said he had confirmed with the state that the housing production municipal grant “is unrestricted. It can be used for any municipal purpose.”

Why it matters: City staff and aldermen said the additional funds will help the welfare office meet required general assistance expenditures amid anticipated federal and state funding reductions. Cheryl, the welfare office lead who addressed the board, warned that recent federal changes — including shortened refugee cash benefit periods and potential cuts to other programs — could increase local demand and that the city is legally required to meet general assistance obligations regardless of budget shortfalls.

Board discussion focused on how the money could be used and on whether the grant had limitations. Belanger and others said the grants were applied for by planning, the mayor’s office and economic development because Manchester met the eligibility criteria; they said there was no specific prearranged use beyond the Merrimack Street project and that the state confirmed no municipal use restrictions.

The board split the item into two motions and voted to accept the housing infrastructure grant and to transfer the $205,500 into account 810525, listed on the agenda as general assistance rentals. Alderman Birkisch moved the transfer and Alderman Long seconded; the motion passed by voice vote.

The board noted the transfer will increase next year’s general assistance funds and therefore reduce other budget capacity by the same amount. No further restrictions or conditions on the transfer were recorded in the meeting minutes.

Ending: Staff said the accepted grant for the Merrimack Street project will be incorporated into the planning department’s CIP accounting and that the transferred $205,500 will be available to the welfare department for general assistance rentals.