The Biden administration’s American Jobs Plan includes a program that would bring $8 million in housing tax credits each year for affordable homeownership in Vermont. Unlike one-time stimulus programs also in the works, the Neighborhood Homes Investment Act (NHIA) would be an ongoing new federal tax credit generating new equity investment dollars for the development and renovation of starter homes in distressed and rural neighborhoods.
Development
Towns can help mitigate rising new home prices in Vermont
With difficulties mounting for home builders across the country, Vermont’s new home prices have started increasing at a faster pace. After several years of minimal growth, the median new primary home sold for $388,000 in Vermont in 2020, up $22,000 from the prior year, according to Multiple Listing Service (MLS) data. Eighty-nine percent of builders reported that the price of building materials is their top challenge, according to the National Association of Home Builders (NAHB).
Congress expands access to affordable housing
The Congressional omnibus spending bill, passed at the end of December, had several key housing provisions, including emergency rental assistance and an extension of the period to use federal CARES Act funds. One key inclusion was a permanent minimum 4 percent rate for Housing Credit developments, which could offer nearly $7 million in additional funding for affordable housing projects in Vermont in the next three years alone.
Vermont Housing Finance Agency completes successful annual sale of state tax credits
Vermont Finance Agency (VHFA) has worked with local financial institutions to fund affordable homes that will be sold to low- and moderate-income Vermonters. Passumpsic Bank, Union Mutual Insurance, Community National Bank, National Life, Northfield Savings Bank, and Union Bank invested in Vermont Affordable Housing Tax Credits available through VHFA.
VHFA celebrates 86 apartments completed in Vergennes, Shaftsbury and Fair Haven
VHFA Executive Director Maura Collins traveled the western side of the state in late September to celebrate the completion of 46 newly constructed and 40 renovated perpetually affordable apartments. “Affordable housing is needed now more than ever as we begin to recover from COVID-19," Collins remarked. “In addition to providing affordable, stable homes for Vermonters, these apartments boost the local economy, connecting residents with jobs and local businesses.”
Homelessness ended among veterans in Chittenden County
On August 28th, the United States Interagency Council on Homelessness (USICH) announced that the Chittenden County Continuum of Care (VT-501) has eradicated homelessness among veterans in Chittenden County.
The announcement, sent to Mayor Kristine Lott of Winooski and Mayor Miro Weinberger of Burlington states:
“We are confident that the infrastructure and systems you have built will ensure that any Veteran experiencing homelessness in the region will get the support they need to quickly obtain a permanent home.”
Mayor Lott stated in an official press release:
VHFA awards state tax credits for affordable homeownership development
Last week the VHFA Board of Commissioners awarded state housing tax credits for five affordable homeownership development projects. In total, VHFA allocates $1,075,000 in state housing tax credits each year, $425,000 of which was awarded last week for affordable homeownership development. Once sold to investors, those credits will yield approximately $1.9 million in equity for construction.
VHFA to hold information sessions on Tax Credit Qualified Allocation Plan updates
Vermont Housing Finance Agency (VHFA) is in the process of updating the Qualified Allocation Plan (QAP) for 2022 to 2023. The Agency sought initial public comment on the plan in February. As part of its continued public engagement VHFA will hold four virtual informational sessions in August and September for the public to ask questions and provide further feedback on proposed QAP updates.
Welch highlights affordable housing provisions in House infrastructure bill
VHFA Executive Director Maura Collins joined Representative Peter Welch at the future site of Juniper House in Burlington last week to promote the federal Moving Forward Act, a $1.5 trillion infrastructure package recently passed by the House of Representatives.
VHFA launches Housing Investment Fund with VCF
Vermont Housing Finance Agency (VHFA) is pleased to announce the launch of the VHFA Housing Investment Fund with Vermont Community Foundation (VCF) as its founding investor. This will be initiated with a VCF investment of $1.5 million for a pre-development program and a long-term loan program made to developers of affordable rental housing. VHFA is working to expand the fund with investments from other community partners to grow its impact.