VHFA joined housing partners in Bennington earlier this week for a ribbon-cutting for Manchester Knoll and Woodland Station. The project, developed by Shires Housing, rehabilitated and preserved 27 affordable apartments located in Manchester and Bennington. The project received federal and state tax credits and a loan awarded by VHFA.
The project involved a four-building, 20-unit development on Torrey Knoll in Manchester, and seven apartments in two buildings on Depot St. in Bennington. Combining the two unrelated developments into one project reduced costs. The three buildings received extensive energy efficiency upgrades, accessibility improvements and interior and exterior repairs. These renovations will substantially reduce operating costs and the carbon footprint of the buildings, in addition to making the apartments more comfortable for residents.
VHFA Executive Director Maura Collins noted that this project benefited from recent federal legislation setting a permanent minimum 4 percent rate for federal bond housing tax credits. The change resulted in nearly $160,000 in additional investment for this project alone.
"As with many other projects, Manchester Knoll and Woodland Station experienced unavoidable delays and significant material cost increases due to the pandemic," remarked Collins. “The federal tax credit improvement and infusion of those additional dollars helped offset much of the unforeseen costs. We are so grateful to our Congressional delegation’s tireless efforts to pass this bill.”
The $6.2 million project received federal Low Income Housing Tax Credits and State Affordable Housing Tax Credits awarded by VHFA. The tax credits were purchased by People's United Bank, raising over $2.4 million in equity for construction. The project also received a $3.8 million tax-exempt construction loan from VHFA. Other funders included the Vermont Housing and Conservation Board (VHCB) and the FHLBank of Boston.