VHFA underwrites developments to ensure that they are properly built, completed within budgeted constraints and the stated time frame, and meet affordability covenants. Underwriting looks beyond compliance with program rules and target marketing. It includes an in-depth review of underlying project assumptions, demand for the project, acquisition and rehab/construction costs, as well as long-term financial viability.
VHFA's underwriting standards are intended to balance credit risk to maintain a high bond rating while providing the flexibility needed by a wide variety of projects. These standards also meet the needs of bond investors, helping make capital investment in Vermont more attractive.
Standards
- Appraisal Standards
- Market Study Standards
- Market Study Checklist
- Underwriting Standards
- Capital needs assessments
- Housing Tax Credit year 15 policy - incl. Qualified Contract Process
- Operating expense guidelines
- Replacement reserve surplus cash distributions
Supportive Services
Design elements
- VHCB/VHFA Building Design Standards
- Energy efficiency
- Qualified Allocation Plan (summarizes other elements required for State and Federal Tax Credit projects)
- Universal Design Policy
- Universal Design - Fillable Checklist
- Developers should also be aware of fair housing laws including, but not limited to, Fair Housing Amendments Act of 1988, Section 504, and Vermont accessibility standards.