Manchester officials have approved a restructuring of city loans held by Families in Transition, a move that could help the nonprofit maintain and continue operating affordable housing across the city.

The Manchester Board of Mayor and Aldermen voted 12–2 on Sept. 1 to approve Families in Transition’s request to consolidate four separate loans it received from the City of Manchester. The decision comes as the organization works to strengthen the finances of several affordable housing properties and position them for additional funding.

The request was brought before the board after FIT Chief Operating Officer Jeffrey Zwillenberg approached the city earlier this summer. The organization sought to consolidate loans associated with four properties: 161 S. Beech St., 106 Market St., 122 Market St. and 394 Second St.

The loans originated through Manchester's Affordable Housing Trust Fund and federal Department of Housing and Urban Development funding that was allocated to the city for housing-related projects. According to city officials, consolidating loans of this type is relatively common when the goal is to preserve an organization's ability to continue providing affordable housing rather than maximize the city's financial return.

Loan Restructuring Could Help Unlock Housing Tax Credits

The restructuring is particularly significant because it is tied to FIT's effort to secure Low-Income Housing Tax Credits, or LIHTC, which are an important source of financing for affordable housing preservation and redevelopment.

Under the terms discussed by the city, the consolidated loan would carry 0% interest for 30 years if the State of New Hampshire awards FIT the requested tax credits. Repayment would be based on 25% of surplus cash flow, with a minimum annual payment of $5,000.

FIT had also requested an additional $2.5 million from Manchester to help recapitalize six affordable housing rental properties. That portion of the request, however, did not move forward. In August, the Board's Community Improvement Committee voted to receive and file the additional funding request, effectively ending that portion of the proposal.

That distinction makes the latest vote more of a financial restructuring and preservation measure than a new $2.5 million city investment in affordable housing.

City Says Consolidation Could Protect Affordable Units

Manchester's Department of Housing and Community Development Director Jeffrey Belanger told aldermen that the purpose of arrangements like this is generally to maximize an organization's ability to continue providing affordable housing to residents.

During the Sept. 1 discussion, aldermen also questioned what would happen if the city rejected the consolidation. Officials indicated that doing so would not negatively affect Manchester's bond rating, but it could make it more difficult for FIT to continue providing affordable housing at the six properties connected to the organization's broader recapitalization effort.

The vote ultimately passed with only Ward 6 Alderman Crissy Kantor and Ward 8 Alderman Ed Sapienza voting against it.

Why the Decision Matters for Manchester Housing

For Manchester, the decision comes at a time when preserving existing affordable housing is becoming just as important as creating new units.

Developing new housing can require significant land, construction and financing costs. Keeping existing affordable apartments in service can provide another way for communities to protect housing that is already available to lower-income residents. Loan restructuring can be particularly important when nonprofit housing providers are attempting to secure tax credits or other financing for rehabilitation and long-term preservation.

FIT's portfolio is part of the broader affordable-housing network serving Manchester residents. The organization reported more than 60 permanent affordable housing units in New Hampshire as of September 2026.

The city's approval does not guarantee that FIT will receive the requested state housing tax credits, but it removes one financial obstacle as the organization pursues that funding.

For Manchester's housing market, the development highlights an important part of the affordability challenge: building new homes is only one piece of the solution. Preserving existing affordable housing and keeping nonprofit-owned properties financially viable can also determine how many reasonably priced homes remain available to local residents.