A recent study of current residents of housing financed through federal and state Housing Credits shows deep income targeting, where residents earn an average of 33 percent of the area’s median income. This is far below the income levels the program is designed to serve, which is typically those earning 50 or 60% of the area’s median. The average household income of tax credit residents is $18,400, and half of residents are considered “extremely low income.”
The federal Housing Credit program, called the Low Income Housing Tax Credit program, and its much smaller state counterpart, is currently housing 9,273 Vermonters in 5,271 units. 40 percent of tax credit units are headed by an elderly household, but 27% all 9,273 residents in tax credit housing are children. Tax credit residents are more racially diverse than Vermont’s typical renters, and pay less for their housing. 61 percent of residents receive some sort of subsidy, on top of the lowered rent charged in tax credit units, to help keep their unit affordable.
More details can be found in this summary report, created by Maura Collins, VHFA’s Policy and Planning Manager.