Manchester-based real estate development firm Elm Grove Companies has begun converting a market-rate apartment complex in Rochester to workforce housing units.

Using an income-averaging program under the Low-Income Housing Tax Credit program, the 96-unit Country Brook Apartments will be open to families who earn between 20 percent and 80 percent of area median income, a range from $16,300 annually up to $93,000.

In addition to the LIHTC allocation through the NH Housing Finance Authority, the agency is providing permanent $13.2 million in bond financing and temporary construction financing of $5.2 million. The project in total is estimated to cost over $23 million, encompassing acquisition, construction, financing and other soft costs.

RBC Community Investments is providing equity financing in conjunction with an allocation of $8.25 million in LIHTC credits and solar tax credits of approximately $200,000. The NH Community Loan Fund and Genesis Community Loan Fund are partnering to provide $750,000 of financing. In addition, Eversource, through the Community Action Partnership of Strafford County, is providing heating, cooling and weatherization measures through the NHSaves program.

“We are in the process of renovating units as they become available, said Carl Schleyer, principal and head of property management at Elm Grove. “Existing residents are being offered newly renovated units within their income bracket and, upon transfer to the new unit, we will renovate the old unit and continue this process to the end.”

He said the process “has allowed us to get underway without displacing the vast majority of residents.” The renovation work is expected to be completed by the end of 2023. — JEFF FEINGOLD