Editor Note: You will want to be sitting down for this one!
In 2016, Robert Najar wrote a letter to the editor about the need for communities other than Portsmouth to provide lower income housing for our community. See his letter below.
Neighbor towns should offer subsidized housing
In 2025, Mr. Najar wrote another letter about his frustration regarding Portsmouth’s attitude that it alone must solve Rockingham County’s housing shortage. See second letter in link below.
The paramilitary threat; housing a regional problem and more: Letters Second letter
His letter discusses the percent of housing in Portsmouth that use taxpayer subsidies and the amount of property taxes the Portsmouth Housing Authority pays. Let’s look at each one of these two points more carefully.
Percent of Subsidized Housing in Portsmouth
According the 2024 Portsmouth Housing Authority (PHA) annual report, the PHA manages 682 rental units. Another four properties around town provide 201 additional subsidized units managed by either Great Bay Services, East Point Properties or JCM Management.
PHA Annual Report 2024
2023-Directory-of-Assisted-Housing.pdf
The total number of subsidized apartments in Portsmouth therefore is 863 units.
In a report titled “Housing Market Study” dated August, 2022 prepared by RKG Associates, the total number of apartments in Portsmouth is approximately 5,019 units. (see page 31). Therefore, as Mr. Najar correctly concluded, 17% of Portsmouth apartments are rented below market rate using taxpayer funded subsidies. (863 divided by 5,019 = .17 or 17%}
17% of Portsmouth apartments are rented below market rate using taxpayer funded subsidies.PowerPoint Presentation RKG Portsmouth Housing Report August, 2022
Portsmouth Housing Authority Property Taxes
As a housing authority, the PHA is subject to state law RSA 203:22, which allows PHA to be exempt from all taxes to the state or any political subdivision. The full text of RSA 203:22 is below:
RSA 203:22 Tax Exemption and Payments in Lieu of Taxes. – The property of an authority is declared to be public property used for essential public and governmental purposes and such property and an authority shall be exempt from all taxes and special assessments of the state or any political subdivision thereof; provided, however, that in lieu of such taxes an authority may agree to make such payments to the state or any political subdivision thereof as the authority finds consistent with the maintenance of the low-rent character of the housing projects or the achievement of the purpose of the housing authorities law.
Section 203:22 Tax Exemption and Payments in Lieu of Taxes. Housing Authority Law Payment in Lieu of Taxes
The RSA does not mention whether Housing Authorities are exempt from water and sewer fees also. Any guesses?
Below is a tally of PHA properties and their 2024 assessed value. Note if PHA is taking full advantage of its tax-exempt status, it is allowed to pocket $1.3 million per year that otherwise would be owed for property taxes to pay for the city services it uses.
1) Feaster Apts & Ruth’s Place – $ 37.7 million
2) Gosling Meadows – $ 35.52 million
3) Wamesit Place – $ 15.9 million
4) Margeson Apartments – $ 9.7 million
5) Woodbury Manor – $ 6.04 million
6) Atlantic Heights – $ 4.02 million
7) Betty’s Dream – $ 3.4 million
8) 444 Pleasant St $ 2.3 million
9) 940 State St – $ 1.6 million
10) 200 Greenleaf Ave – $ 1.4 million
11) Lafayette School – $ 1.2 million
12) Connors Cottage – No Assessment
TOTAL ASSESSED VALUE $119 million
Annual PHA Property Tax Exemption $1.33 million dollars (= 119,000,00 times $11.18 / 1,000)
From his second letter, Mr. Najar believes PHA voluntarily pays Portsmouth $400 per year per resident in lieu of property taxes. The PHA website did not elaborate on its payments to Portsmouth in lieu of taxes, if it pays any. Perhaps this issue could be clarified this year with a line item on the revenue side of the ledger in this year’s Portsmouth city budget: PHA payments in lieu of taxes = ?
