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Reading: LTE: Portsmouth Housing Authority falls under RSA 72:23-k
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Portsmouth Pulse > Blog > Affordable Housing > LTE: Portsmouth Housing Authority falls under RSA 72:23-k
Affordable HousingLetters to the Editor

LTE: Portsmouth Housing Authority falls under RSA 72:23-k

Staff Writer
Last updated: 2025/03/11 at 8:33 AM
Staff Writer Published March 11, 2025
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An anonymous submission

In a story published below on February 13, 2025, the Portsmouth Pulse erred in stating the Portsmouth Housing Authority (PHA) is governed by RSA 203:22 regarding its local property tax obligations. 

Shocking Study Reveals 17% of Portsmouth Apartments Rent Below Market Rate, Due to Resident Taxpayer Subsidies – Portsmouth Pulse

Section 203:22 Tax Exemption and Payments in Lieu of Taxes.    Chapter 203 Housing Authority Law

In fact, PHA is governed by RSA 72:23-k, as follows:

72:23-k Charitable, Nonprofit Housing Projects. –

I. The real estate and personal property of charitable, nonprofit community housing and community health care facilities for elderly and disabled persons, if none of the income or profits is used for any purpose other than community housing or community health care, shall be exempt from taxation. This exemption shall apply to housing and health care facilities situated within New Hampshire which are sponsored or owned by nonprofit, charitable corporations or organizations, located within or outside of the state, and to projects organized, operated, or assisted under state law or pursuant to rules and regulations of the United States Department of Housing and Urban Development, the United States Department of Health and Human Services, or any successor agency. For the purposes of this section an elderly person is one who is 62 years or more of age. The age of the head of the family determines the eligibility of the family unit in the project. For the purposes of this section, the term “charitable” shall have the meaning set forth in RSA 72:23-l.


II. On or before November 1 of each year the owner of the housing project shall enter into an agreement with the municipality in which the property is situated to pay the municipality, on December 1 of each year, a sum in lieu of taxes to defray the costs of municipal, non-utility, services. Failing mutual agreement, the sum paid on December 1 of each year shall be an amount not to exceed the lower of 10 percent of the shelter rent received by the owner from all sources during the preceding calendar year, not including security deposits received from residents of the housing project, for shelter and care of residents within the project, or a sum equivalent to that derived from application of the current municipal, non-school, portion of the local tax rate against the net local assessed value of the project. For cause shown and at any time, keeping in mind the nature and purpose of the project, the municipality or the board of tax and land appeals may refund or abate all or a portion of the payment in lieu of taxes in any year. The owner shall on or before June 1 of each year file with the municipality in which the property is located, upon a form prescribed and provided by the board of tax and land appeals, a statement of its financial condition for the preceding fiscal year and such other information as the board of tax and land appeals requires.

Source. 1987, 194:1. 1990, 140:2, X. 1991, 111:2, 3; 306:7, eff. April 1, 1992.

Section 72:23-k Charitable, Nonprofit Housing Projects.   Charitable, Non-Profit Housing Projects

RSA 72:23-k allows PHA three options regarding its payment in lieu of taxes to Portsmouth, as follows:

1) A payment equal to 10% of the rents it received during the prior year.  Rents received by anyone 62 years or older are exempt from this calculation.

2) A payment equal to the assessed value of all PHA property multiplied by the local tax rate, exclusive of the school portion of the tax rate.  The most recent Portsmouth tax rate of $11.18 per thousand breaks out as follows:  Municipal – $ 4.98, County – $0.58, State Education – $1.13 and Local Education – $4.49.  PHA property tax rate would therefore be $6.69 per thousand. Any property that houses residents that are 62 years or older is exempt. (For 2025, that payment would be 119,000 times $6.69/1000 = $796,110.00)

3) A payment in lieu of taxes that Portsmouth and PHA agree to.

In 2024, PHA paid Portsmouth $286,000.00 as a payment in lieu of taxes.   The most recent property evaluation has PHA owning $119 million worth of property.  If taxed at the full tax rate, PHA would owe $1.33 million dollars.  If it pays $286,000.00 in 2025, Portsmouth taxpayers will pick up the tab for the rest, ($1,044, 420.00) or 79% of PHA’s full rate tax obligation. 

Of the three choices for payment in lieu of taxes, PHA is paying for the municipal services its tenants use with either option #1 or option #3.  Regrettably, the PHA website does not state which option it uses for its payment is lieu of taxes.

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