Vermont Housing Finance Agency (VHFA) Executive Director Maura Collins joined housing partners on Wednesday for a virtual ribbon-cutting ceremony for New Avenue Apartments in downtown St. Johnsbury. The historic building, redeveloped by RuralEdge and Evernorth, offers 40 apartments and ground-floor commercial space. The project received the majority of its funding from federal tax credits and a long-term loan awarded by VHFA.
The building that now houses New Avenue apartments was originally built as a hotel in 1897. The building was converted to subsidized apartments in 1988, however, in recent years its quality had deteriorated significantly. RuralEdge and Evernorth acquired the building in 2018, aided by a special $1 million appropriation from the state Legislature.
The project involved a full gut rehabilitation, improving the layout and completely updating building systems while retaining historic features where possible. Bread Loaf Corporation, the construction manager, produced a video of the renovation process that highlights the role of women construction workers on the project.
Current tenants were offered housing vouchers while the building was renovated. The renovated building offers 37 affordable and 3 market-rate apartments, including 9 homes reserved for homeless and at-risk households, paired with supportive services. Together, the new housing and commercial spaces will help connect tenants to jobs, transportation and services while also contributing to St. Johnsbury’s economic revitalization.
"VHFA’s Board of Directors was eager to support this development because of its transformational impact on St. Johnsbury," remarked Collins. “I don’t think we could list all the wins that this development accomplished. VHFA is proud to join the community in today’s celebration.”
The $15 million project received federal Low Income Housing Tax Credits and a $625,000 permanent loan awarded by VHFA. The tax credits were purchased by Housing New England Fund 1, raising over $7.3 million in equity for construction. Other funders included the Vermont Housing and Conservation Board (VHCB), the National Housing Trust Fund, the Vermont Community Development Program (VCDP), the Federal Home Loan Bank of Boston’s Affordable Housing Program, and the Vermont Community Foundation.
Pictured: New Avenue Apartments. Courtesy of Evernorth.