The Vermont Housing Finance Agency (VHFA) Board of Commissioners has awarded tax credits which will generate $28 million for developing 241 apartments. These homes will serve low-income renters in seven communities across the state.
Awards of federal Low Income Housing Tax Credits and state rental tax credits come at a pivotal time for Vermont as development costs and the demand for more affordable housing rise. Since 2020, the cost to develop an affordable apartment and the number of Vermonters experiencing homelessness have both doubled.
Tax credits incentivize developers to build apartments that charge lower rents than typically available. These 241 homes funded by VHFA are only a fraction of the estimated 11,000 rentals Vermont needs to serve low-income households over the next five years.
Competition for tax credits among developers is strong and the criteria for awards is rigorous. The state’s Qualified Allocation Plan (QAP) guides developer eligibility and prioritizes the types of housing development Vermont needs most. After a multi-year public comment period, VHFA proposed updates to the QAP to expand the impact of future tax credit awards on meeting Vermont’s urgent affordable housing needs.
“As administrator of Vermont’s housing tax credits, VHFA is responsible for the state’s most valuable public resource for building affordable apartments,” said Maura Collins, VHFA Executive Director. “This means we must always look for ways to reach more of the Vermonters who struggle to find an affordable, safe place to live.”
Housing development is expensive. Three projects will receive $26 million for paying development costs:
- Highgate Village Housing, Highgate, VT.
Apartments: 30
Part of a downtown redevelopment strategy, these apartments will offer the only permanently affordable housing in the town, although they will be limited to elderly households. Construction will begin in June 2027 with move in starting in August 2028. The developer is Cathedral Square Corporation.
- Park Street Apartments, Winooski, VT.
Apartments: 24
A property accommodating residents of all ages, these apartments will help meet the housing needs of Winooski’s larger families by offering 3- and 4-bedroom options. The site of the building is considered a brownfield site which means the land has environmental contaminants. The site will be cleaned to rigorous state standards prior to construction, benefiting the residents and neighborhood. The developer estimates that occupancy will be in 2028. The developers are Champlain Housing Trust and Evernorth.
- Sykes Mountain Apartments, White River Jct., VT.
Apartments: 48
Part of a larger development project for which site work is underway, this 48-apartment building will include studio, 1-, 2-, and 3-bedroom homes. Move in is expected in December 2027. The developers are Twin Pines Housing Trust and Evernorth.
Four additional development projects will receive an estimated $1.9 million from a state rental tax credit program for development costs:
- Arlington Village Center, Arlington, VT.
Apartments: 30
The preservation and rehabilitation project involves 29 existing apartments and the construction of one new apartment across 11 buildings. Twelve of the apartments are reserved for older Vermonters and the remaining have no age restriction. The developers are Cornerstone Housing Partners and Evernorth.
- Caledonia Renaissance Apartments, Saint Johnsbury, VT.
Apartments: 18
This is a rehabilitation of an existing project which will preserve 18 affordable apartments across five buildings in need of reinvestment due to their age and condition (formerly called GHT Caledonia Housing). These homes have a commitment from USDA Rural Development’s 515 program which provides a long-term permanent loan at a 1% interest rate, as well as project-based rental assistance making the apartments deeply affordable for those with very low incomes. The developers are RuralEdge and Evernorth.
- Round Barn, aka Faywood Road, Grand Isle, VT.
Apartments: 24
The project involves the rehabilitation and construction of 24 apartments for the elderly in two buildings. An eponymous round barn will be demolished and 16 new, highly energy efficient apartments will be built in its place. Addition apartments within an existing annex building will be renovated. The developers, Cathedral Square Corporation and Evernorth, will acquire the neighboring solar array which will be used to offset the development’s energy needs.
- Ride Your Bike Building, Burlington VT.
Apartments: 67
The project will offer residents a variety of layouts including studios, 1-, and 2-bedroom apartments. Part of a much larger 240+ housing development, this is the first phase of a master plan for a currently underutilized parking lot. The developers are Jonathan Rose, Ride Your Bike, and Champlain Housing Trust.
For more information about VHFA’s LIHTC program, QAP, or past tax credit allocations, visit www.vhfa.org/developers.
Vermont Housing Finance Agency (VHFA) was established in 1974 to finance and promote affordable, safe, and decent housing opportunities for low- and moderate-income Vermonters. Since its inception, VHFA has helped more than 31,000 first-time home buyers and their families purchase homes. It provides financing, development and management support, subsidy administration, and tax credits for approximately 9,600 affordable apartments statewide.
Image: Highgate Village Housing, recipient of tax credits, will create 30-age restricted apartments in part of the town's neighboring revitalization plan. The homes will be the first permanently affordable rental housing in Highgate.