The Vermont Housing Finance Agency Board of Commissioners approved awards on Monday, April 21, 2025, of federal low-income housing tax credits to build approximately 128 new affordable homes. Four out of seven proposed development projects were selected to receive $3.4 million in federal housing tax credits which will generate $31.5 million in equity for housing development costs.
The funding comes at a critical time for Vermont as the state works to expand affordable housing options, particularly for low-income families, older adults, and households who have experienced homelessness.
"Affordable housing is a crucial component of Vermont’s economic wellbeing and the cornerstone of thriving communities. These federal tax credit awards will produce vital affordable housing needed for hard-working families and retired Vermonters,” said the Vermont Congressional Delegation.
Earlier this month, the U.S. House of Representatives introduced the Affordable Housing Credit Improvement Act (AHCIA) to expand the Low-Income Housing Tax Credit (Housing Credit) by 50%. If affirmed, the act would allow an estimated 1.6 million affordable rental homes to be built nationally. The senate version of the bill is expected to be introduced in the coming month. All three members of Vermont’s federal delegation support the AHCIA.
In a statement from VHFA, “all four projects awarded tax credits are committed to developing communities that eliminate the barriers that have caused Vermonters hardship in finding and securing affordable and decent housing.” In addition to adding much-needed inventory to the statewide shortage of apartments affordable to lower income residents, each project has met VHFA’s requirements for universal design, sustained affordability, and energy efficiency.
The four selected development projects are Stevens Branch Apartments in Barre (31 homes), Chalet Phase I in Brattleboro (31 homes), Highgate Village Housing in Highgate (30 homes), and Riggs Meadow Apartments in Hinesburg (36 homes). A summary of projects is as follows:
Stevens Branch Apartments, Barre
Located in a community that has experienced significant loss of housing due to flooding in recent years, the 31 homes will provide much-needed housing including 24 apartments rented to households with incomes at or below 60% Area Median Income (AMI). Of those homes, six will be designated for residents coming out of homelessness. Two additional units will be set aside for Individuals with Developmental Disabilities. The apartments will consist of 3 studio apartments, 12 one-bedroom apartments, 12 two-bedroom apartments and 4 three-bedroom apartments. Three units will be designed as fully ADA compliant. Supportive services will be provided in part through Washington County Mental Health, including help with employment/job training, budgeting, and connecting residents with community services. The developers are Evernorth and Downstreet Housing & Community Development. Downstreet Housing & Community Development will also be the property manager.
Chalet Apartments Phase 1, Brattleboro
This multi-phase project will build 31 new apartments, including 24 apartments rented to households at or below 60% AMI, during its first phase, many of which will serve people experiencing homelessness and at-risk households. Fifteen of the apartments will serve as Permanent Supportive Housing (PSH) units. Additionally, Groundworks has partnered with Evernorth and Windham & Windsor Housing Trust to provide voluntary, comprehensive, onsite services in the building for all residents. Later phases of the project will include 30 additional mixed-income homes and a restored historic building, formerly the Chalet Motel. This project will introduce new affordable housing options to a community plagued by lack of rentals since the pandemic.
Riggs Meadow Apartments, Hinesburg
This project will add 36 new homes across four buildings consisting of 14 townhouses in two blocks, and 22 apartments in two multifamily buildings. Twenty-eight of the homes are housing credit units and will be affordable to households below 60% AMI. Three apartments will be fully ADA accessible with another 12 on grade and adaptable. Evernorth, the developer, and Champlain Housing Trust, co-developer and property manager, have a successful history of working together to create affordable housing in Chittenden, Franklin, and Grand Isle counties.
Highgate Village Housing, Highgate
The Highgate Village project will add 30 homes, helping to relieve a lack of publicly-subsidized rental housing in the area. Of the homes, 24 apartments are designated as affordable to households at or below 60% AMI. Two of the apartments are fully ADA compliant, and one additional apartment will be audio/visual accessible. SASH services will be offered on-site at no cost to residents. Cathedral Square Corporation is the project sponsor and property manager.
In addition to federal housing tax credits, other funding sources for the developments include grants and loans from VHFA, Vermont Housing and Conservation Board, the federal HOME program, Federal Home Loan Bank of Boston, Congressionally-Directed Spending, the National Housing Trust Fund, the Vermont Community Development Program, Leahy Legacy Funds and Efficiency Vermont.
Congress created the Low-Income Housing Tax Credit program in 1986 to encourage the creation and preservation of affordable rental housing for low-income households. As a supplement to the federal program, the Vermont legislature created a similar program in 2000. Tax credits reduce tax liability for owners of qualifying rental housing if they agree to conform to certain operating restrictions. Vermont’s federal delegation has a long history of involvement in these programs and supports the proposed Affordable Housing Credit Improvement Act (AHCIA).
PHOTO: Image is a rendering of Chalet Apartments, Phase 1, located in Brattleboro, VT.