The Vermont Housing Finance Agency (VHFA) Board of Commissioners announced last week that its annual award of federal housing tax credits will support the construction of 112 homes in perpetually affordable apartment buildings in four communities across the state. The sale of this year’s tax credits to investors is expected to yield over $28 million in funds covering an estimated 60 percent of total project development costs.
These housing construction projects will take place in a uniquely challenging environment. Elevated development costs, interest rates and housing needs among Vermonters heavily influenced project planning. The cost of developing a unit of rental housing in Vermont has increased 36% since 2018.
“Safe, quality, affordable housing is a human right, period,” said Senator Bernie Sanders. “The good news is that when we invest in affordable housing – especially when combined with essential services for working families, seniors, and those experiencing or exiting homelessness, as is the case with this federal funding – entire communities benefit.”
Twenty-three of the apartments in these projects will be service-supported homes for people exiting or at-risk of homelessness. Since 2020, the number of people in Vermont experiencing homelessness has more than doubled, even tripling in some parts of the state. “At a time when we are experiencing nothing short of a crisis of affordable housing in Vermont, I look forward to seeing all the good that comes from these critically important projects,” continued Senator Sanders
“It is clear that an investment in housing is an investment in our economy and the health of Vermonters,” said Senator Welch. “These new, efficient and affordable homes will allow Vermonters to stay in their community and be connected with jobs, services and recreation.”
The apartments developed through this week’s award of federal tax credits will be located in Putney, West Rutland, St. Johnsbury and Burlington.
Alice Holway Drive apartments in Putney will be developed by Evernorth and Windham & Windsor Housing Trust and include 25 apartments. Nineteen apartments will serve very low, low and moderate income renters with five set aside for permanent, service-supported homes for people exiting or at risk of homelessness. Planning for this project involved extensive community collaboration and visioning for Putney Village.
Marble Village in West Rutland will be developed by Evernorth and Housing Trust of Rutland County and will replace several older buildings in disrepair near the village center with 24 new apartments. Nineteen apartments will serve very low- and low-income renters with five set aside as permanent service-supported homes for people exiting or at-risk of homelessness. The Village of West Rutland worked in partnership with the project’s planners to improve zoning and parking requirements to allow the project to proceed.
Packard Court in the heart of downtown St. Johnsbury will replace a brownfield created by a fire years ago with a new 30-apartment building for seniors. Developed by Rural Edge and Evernorth, the building will have on-site services through Support and Services at Home (SASH). Twenty-four of the apartments will be for very low-income renters and six of those will serve individuals exiting or at-risk of homelessness.
Pine at City Place in downtown Burlington is being developed by Evernorth and Champlain Housing Trust and will provide 33 new apartments. Nineteen apartments will be for very low and low-income renters and 7 will be service-supported homes for people exiting or at risk of homelessness. Pine at CityPlace is part of a larger complex, involving more affordable apartments, multiple mixed-use buildings and street improvements by the City of Burlington.
“As a former teacher, I know housing is often a foundation of support for working families. Stable housing reduces child poverty and gives our kids a chance to learn and grow,” said Congresswoman Balint. “These federal tax credits will be so impactful for so many Vermont families.”
Federal legislation to increase the amount of housing credits available to Vermont and expanding eligibility could create an additional 2,600 affordable housing units over the next 10 years. Vermont’s federal delegation is working to support this important piece of legislation.
In addition to the housing credits awarded by VHFA, other funding sources for these developments include grants and loans from the Vermont Housing and Conservation Board, federal HOME program, Vermont Agency of Commerce & Community Development, Housing & Urban Development’s (HUD) Section 202 Supportive Housing for the Elderly Program, City of Burlington, Town of St. Johnsbury, Town of West Rutland, and Efficiency Vermont. When the apartments come online, Vermont State Housing Authority and several local Public Housing Authorities will provide project based rental assistance, which will further reduce rent for several units, allowing the projects to provide deeper affordability.
Pictured: Architect’s rendering of proposed Alice Holway Drive project in Putney, Vermont.
