On Monday, the Vermont Housing Finance Agency (VHFA) Board of Commissioners awarded $708,000 in Vermont State Affordable Housing Tax Credits for homeownership development projects. Once sold to investors, the credits will yield nearly $3.4 million in equity for home construction costs and energy-efficient manufactured homes. The projects will create new, high-quality homes, which are needed more than ever as low- and moderate-income homebuyers continue to face an extremely challenging housing market.
About 8 percent of Vermont households live in manufactured homes. Investment in energy efficient manufactured homes can offer a sustainable path to long-term affordable homeownership, particularly in the state's resident-owned cooperatives. During the 2022 Vermont State Legislative Session, the Legislature increased the amount of available credits for the program by $250,000 to support more manufactured homes.
VHFA awarded credits to Windham and Windsor Housing Trust (WWHT) for Tri-Park Cooperative Housing in Brattleboro. Tri-Park is Vermont's largest manufactured home community and is organized as a resident-owned cooperative. One of the three community locations is at very high risk for flood damage. The project is being overseen by M&S Development, and will provide 27 residents with highly energy efficient new manufactured homes at safer locations within the community, and the old sites will be converted into a conservation easement. VHFA is also currently underwriting the project for pre-development capital and a loan refinance to address major infrastructure improvements for Tri-Park.
Champlain Housing Trust (CHT) also received state tax credits for approximately 47 new homes through its Manufactured Housing Down Payment Loan Program. The statewide program provides 0% interest second mortgages to help borrowers place a new Energy Star manufactured home on owned land or in a manufactured home community. The program also serves households looking to replace old manufactured homes with highly efficient modular homes. Since 2012, the program has served 270 households across every Vermont county.
VHFA also awarded state tax credits for new condominiums. At Bay Ridge in Shelburne, CHT will build 26 new condominiums as part of the redevelopment of the former Harbor Place Motel. VHFA previously awarded state and federal housing tax credits and loans for 64 rental apartments in the master site plan. The new condos will include six 4-unit townhomes including 3-bedroom and 2-bedroom units, as well as one duplex, with two fully accessible 3-bedroom units. Homes are anticipated to sell at a net price from $145,000 to $160,000 to buyers earning around 70 percent of area median income (AMI).
At Temple Street & Manhattan Drive, CHT will partner with Green Mountain Habitat for Humanity (Habitat) to construct two new 3-bedroom duplexes in Burlington. This collaboration between Habitat and CHT has yielded 25 homes in the past five years. CHT provides income verification, buyer education and ongoing stewardship, while Habitat coordinates volunteer labor and acts as the general contractor. Homes are anticipated to sell at a net price of $131,000 and $153,500 to buyers earning around 50 percent of area median income (AMI).
CHT and Habitat will also partner on Clearview Estates in Milton on a new duplex within a larger mixed-income development. VHFA awarded tax credits last year for an earlier phase of the project. The new duplex will consist of one 2-bedroom and one 3-bedroom home, anticipated to sell at net prices of $140,000 and $150,000, affordable to households earning roughly 50 percent of AMI.
Homes developed by CHT will use a shared equity model, in which homes are sold to low and moderate-income buyers who will use the equity as a down payment which will lower monthly mortgage payments. If the buyers ever move, the home is resold through CHT to another moderate-income buyer. The original homeowner retains a portion of the appreciated value, and the perpetual affordability of the home is ensured.
VHFA also awarded state credits to Twin Pines Housing Trust (TPHT) and Evernorth for homes in the Safford Commons neighborhood. The project began in 2005 with 28 rental homes but encountered numerous permitting and cost increase challenges until it was finally completed in 2015. The original plan also included affordable homeownership, and in 2019, VHFA awarded state credits to support the construction of the first two duplex buildings. The current project will complete the final two duplex buildings, creating 4 three-bedroom units and meeting Efficiency Vermont's High-Performance Home standards. The homes will sell at net prices of $235,000, targeted to households earning 80 to 120 percent of AMI, and will be sold with a limited equity provision allowing the homeowner to retain 25% of the appreciation of the home upon resale to another income-qualified buyer.