Salem receives $1 million in state funding to support housing infrastructure, production

The Town of Salem has been awarded $1.15 million in state funding to pursue housing production and infrastructure projects as one the state’s recognized housing champions.

Late last year, Salem, alongside 17 other towns, was designated a housing champion for demonstrating leadership in fostering affordable, accessible and sustainable housing developments, which made the town eligible to receive the funding from the Department of Business and Economic Affairs (DBE).

Salem was the recipient of two key grants, the Housing Production Municipal Grant and the Housing Infrastructure Municipal Grant, which gave out a total of $5 million to eligible communities. Earlier this month, Salem received monies from both grants in the amounts of $297,000 and $859,700, respectively.

The $859,700 in infrastructure funding will help support the Brady Avenue upgrade and expansion project, which should be finished by the end of next May, said Andrew Dorsett, housing finance director for DBE.

Once the project is complete, the improved water infrastructure will support Whistle Hill Development, a 10-unit, single-family development and give them the option to connect to main water lines instead of relying on private wells, Dorsett said.

The seven towns selected for the infrastructure projects must use the funds to upgrade sewer, water, electrical or fire suppression infrastructures that directly support residential housing developments.

In Salem, the water expansion will also enable the redevelopment of the golf course property to yield an additional 50 to 75 residential units, Dorsett said.

“We don’t necessarily want the golf course to be developed anytime soon, but it would allow for additional capacity for residential development in the Brady Avenue area,” said Salem Planning Director Jacob LaFontaine.

At this time, plans for redevelopment are not underway or known to the Planning Department, he said.

The town only became eligible for the production grant with the completion of the Depot on Main project, which saw the addition of 74 additional housing units on Main Street, 10% of which are workforce housing, LaFontaine said.

The pending grant incentivized the town to expedite the work.

“We can use the $297,000 broadly as the community would like,” he continued. “So far, we just adopted the Master Plan and the hope would be to use some of the funding to pay for an update to the zoning ordinances to ensure congruency with the Master Plan.”

Of the four towns selected for housing production projects, Salem, Manchester, Nashua and Newport will complete the needed infrastructure improvements that could lead to the construction of nearly 400 new residential housing units.

“These communities have set a high standard for innovation and collaboration in tackling New Hampshire’s housing challenges,” said DBE Commissioner Taylor Caswell.

“Their commitment is instrumental in creating the kind of vibrant, sustainable communities that New Hampshire needs to grow its workforce and economy.”