A downtown Lebanon lot that the city has been trying to turn into housing for three years took a big step toward construction in September.
The New Hampshire Housing Board of Directors approved financing commitments for two Lebanon housing developments, the agency announced Sept. 25. One is The Muse, a planned 80-unit affordable housing community. The other is Families Flourish Northeast, a planned supportive housing development for pregnant and parenting women in recovery from substance use disorders and their children.
According to the agency's announcement, The Muse received approvals of up to $16.5 million in tax-exempt bond financing, $4.394 million in HOME funds and $1.5 million in Housing Trust Fund resources. The building will serve a range of income levels and include 20 project-based vouchers administered by the Lebanon Housing Authority.
Families Flourish Northeast received approval for up to $3 million from the state's Opioid Use Disorder Supportive Housing Capital Program. The planned 12-unit development will pair stable housing with recovery support services, the agency said.
"These approvals will help address housing needs in Lebanon by supporting both new affordable homes and recovery housing for families," said Rob Dapice, executive director and CEO of New Hampshire Housing. "Projects like The Muse and Families Flourish Northeast demonstrate the importance of targeted partnerships that respond to community needs and create housing opportunities for residents at different stages of life."
A city-owned site
The Muse is going up at 20 Spencer St., a property the City of Lebanon owns. The city's project page lays out how it got here.
In September 2023, the city issued a request for proposals seeking a developer to redevelop the property for 100% residential workforce housing. It picked The Muse Lebanon, LLC, from among three responses. The proposal, submitted by Stephen and Jake Tamposi, included buying the property from the city for $400,000 and building a four-story building with 80 affordable units.
The city and developer signed a development agreement and option agreement in May 2024, and the Lebanon Planning Board granted conditional site plan approval in September 2024 so the developer could pursue funding. In 2026, the developer lined up capital funding and tax credit commitments from New Hampshire Housing, federal HOME and Housing Trust Fund dollars, and InvestNH 2.0 grant money from the state Department of Business and Economic Affairs, according to the city.
In August 2026, the developer went back to the Planning Board for minor amendments to the approved project. The city says the developer now plans to finish final engineering and architectural plans and obtain a building permit in late 2026 or early 2027.
The building will include a mix of studios and one-, two- and three-bedroom units. They will be available to households earning between 30% and 80% of the Grafton County area median income, or about $24,000 to $84,000 a year, the city said.
The city's page also posts environmental reports on the site, including a 2022 status summary of PCB and petroleum cleanup activities and state Department of Environmental Services responses to cleanup and groundwater sampling reports.
The city's original request for proposals asked for a high level of energy efficiency and sustainable building practices, including above-code performance under standards such as the 2018 International Energy Conservation Code, LEED or the Phius passive building standard.
Why it matters for Contractors
An 80-unit, four-story building backed by bonds, tax credits and federal funds is a solid mid-size job for the Upper Valley. With a building permit targeted for late 2026 or early 2027, The Muse is moving from paperwork toward bidding. No general contractor has been announced, so contractors should watch for the developer's bid packages and keep an eye on the city's project page.
The site's cleanup history is worth noting for excavation and sitework crews, who should expect environmental controls and careful soil handling. Federal HOME and Housing Trust Fund money can bring federal labor and reporting rules with it, so subcontractors should read bid documents closely for wage and paperwork requirements.
The city's call for above-code energy performance also points toward tight envelopes and efficient mechanical systems, which favors insulation, air sealing, window and HVAC contractors who know high-performance work. The smaller Families Flourish Northeast project, at 12 units, is another job to watch for builders who do supportive housing.