A small-town apartment project that filled up fast is looking to double in size, and a state housing agency is weighing a $2.1 million piece of the financing.
New Hampshire Housing gave notice Sept. 18 that it would hold a public hearing on financing for Hillsborough Heights Phase II, a proposed 42-unit multifamily rental development at 219 West Main St. in Hillsborough. The hearing was set for 3 to 3:30 p.m. Oct. 6 at Fuller Public Library on School Street, with written comments accepted through 4:30 p.m. Oct. 8.
According to the agency's hearing notice, New Hampshire Housing intends to approve the use of $2.1 million in Affordable Housing Fund money as part of the financing, though the amount "may be decreased or increased at NH Housing's discretion." The notice puts the total cost of the project at $10 million, which works out to roughly $238,000 per unit.
The owner of the project will be Hillsborough Heights Phase II Limited Partnership, based in Walpole. New Hampshire Housing administers the Affordable Housing Fund under RSA 204-C:56-62 and has its own rules for how the money is handed out. Comments on the Phase II proposal went to Olivia Hamilton at the agency, and the notice was signed by Executive Director Robert B. Dapice.
As of Oct. 18, New Hampshire Housing had not posted a final decision on the Phase II funding on its website. The agency posted notice of an October board of directors meeting on Oct. 15.
Building on Phase I
The new building would join the first phase at the same address. Walpole-based Avanru Development, which developed Phase I, describes it on its website as a 42-unit workforce housing development that is fully occupied and accepting applications for a waiting list.
According to Avanru, Phase I was expected to begin construction in November 2023 and come online Nov. 1, 2024. It includes 24 one-bedroom, one-bath units of 605 square feet and 18 two-bedroom, two-bath units of 905 square feet. Features listed include Energy Star appliances and lighting, ADA accessible units, individually controlled digital heating and cooling, common rooms and porches, on-site laundry and a security camera system. Heat, lawn care, snow removal and rubbish removal are included in the rent, and the site sits less than a quarter mile from a grocery store, retail, a restaurant, a fueling station and a health center.
Avanru, which also lists finished workforce housing projects at 10 and 12 Perry Lane and at 32 Spring Street as fully occupied, says on its site that vacancy rates are "at 1% or less statewide" and that its development platform "allows us to build the next generation of housing in half the time with energy efficiencies beyond 2030 standards."
The town has backed the project before. Hillsborough's selectmen voted July 23, 2025, to support a Community Development Block Grant application for the second building, according to the board's meeting minutes, after earlier supporting a grant application for the first.
The hearing notice does not name a builder for Phase II, and Avanru's site doesn't say whether it will develop the second phase.
Why it matters for Contractors
A $10 million, 42-unit rental building is a meaningful job for a small New Hampshire town, and Hillsborough Heights is one of several workforce housing projects its developer lists around the region. The plans for Phase II haven't been made public, but Phase I shows the kind of building involved: apartments with one- and two-bedroom units, Energy Star appliances and lighting, individual heating and cooling controls, accessible units, porches and common rooms.
That kind of building calls on sitework and utility crews, framers, roofers, siding and window installers, insulation contractors, drywall and flooring crews, and mechanical and electrical trades. Phase I's full occupancy and waiting list are the main argument for building a second phase on the same site.
Public money usually means paperwork. Community Development Block Grant dollars carry federal requirements, so subcontractors should read bid packages closely for wage and reporting rules. Keeping certified payroll and compliance records in order is part of the price of admission on these jobs.
No general contractor has been named for Phase II, and the state's funding decision is still pending. Contractors interested in the work should watch New Hampshire Housing's announcements and reach out to the project's owner once financing is set.