The Vermont Housing Finance Agency (VHFA) has awarded federal low-income housing tax credits (LIHTCs) and Vermont Affordable Housing Credits that will provide almost $37 million in upfront equity for the creation and renovation of housing for low-income residents.
VHFA approved $2.5 million in 10-year federal capped credits, $610,000 in 10-year federal uncapped bond credits, and $485,000 in five-year state credits for the development and renovation of 272 affordable housing units in 11 developments. It also approved $7.2 million in permanent and construction financing for five of the developments.
“This year, VHFA faced twice as many applications for tax credits as we could approve,” said executive director Sarah Carpenter. “Although all of the projects under consideration would help expand Vermont’s extremely tight supply of affordable rental housing, limits on the amount of federal and state credits each year hamper our state from more fully addressing this longstanding shortage.”
With the help of federal LIHTCs, new apartments will be constructed in Burlington, Putney, and South Burlington for families, seniors, and those at risk of homelessness. Rehab and preservation efforts also will take place in Brattleboro, Bristol, Hardwick, Middlebury, Montpelier, Newport, Poultney, and Springfield.
VHFA also awarded state tax credits to seven affordable rental housing developments that will create 94 affordable apartments across the state and two homeownership developments for 18 affordable condominiums for eligible buyers in Colchester.
One development that received both federal and state tax credits is City Center in South Burlington, which will provide 29 affordable and 10 market-rate units in a service-enriched building. Cathedral Square Corp. is developing the project with Snyder-Braverman Development Co.
In addition to the federal and state tax credits, other funding sources for these developments include VHFA permanent and construction financing and grants and loans from the Vermont Housing and Conservation Board, the federal HOME program, the National Housing Trust Fund, the Federal Home Loan Bank’s Affordable Housing Program, local housing trust funds, NeighborWorks America, the Vermont Community Development Program, and U.S. Department of Agriculture Rural Development.
