Vermont Housing Finance Agency (VHFA) announced that it has received $4.5 million for affordable housing through its third federal Capital Magnet Fund award. The funds will be invested in VHFA’s Housing Investments for Vermont (HIVE) Fund, which has now raised over $20 million from private and public investments. The new award will support the development and preservation of over 240 permanently affordable apartments for Vermonters.
“In Vermont and all over this country, we are facing a housing crisis that too often forces working people to choose between food, medicine, and keeping a roof over their heads and their loved ones,” said Senator Bernie Sanders. “Unacceptable. In the richest country in the history of the world, we must guarantee safe, decent, and affordable housing as a fundamental right for our communities and this federal investment is another step toward achieving that goal.”
The $4.5 million award is VHFA’s third consecutive award from the Capital Magnet Fund, a program of the U.S. Treasury. This year the program awarded $246 million in funding to 48 nonprofits and financial institutions. The program is highly competitive, having received requests for over four times the available funding this year.
“With over half of renters spending more than a third of their income on housing costs, it’s clear why housing is such an urgent concern for Vermonters,” said Senator Peter Welch. “More affordable homes are needed to attract and retain workers, provide financial stability for Vermont families, and house Vermonters experiencing homelessness. Vermont is modeling the partnerships and innovation necessary to solve this crisis, and we will continue to advocate for new funding to support those efforts.”
VHFA uses the HIVE fund to make loans to housing developers that fill critical gaps in project budgets. These include low-interest long term loans, short-term construction loans, bridge financing, and loans to allow for preservation-focused acquisitions. To date, the fund has supported the development or preservation of 1,198 affordable apartments in 23 Vermont cities and towns. Over 145 of these homes are set aside for Vermonters exiting homelessness.
“A family cannot have stability, cannot build wealth, cannot focus on their careers or their kids’ education if they don’t have access to affordable, quality housing. We cannot build and grow strong communities without housing opportunity,” said Rep. Becca Balint. “We need creative and bold solutions to tap into as many resources as possible together to build more affordable, inclusive, and resilient homes for Vermont families.”
These awards represent VHFA’s continued efforts to combine new public and private dollars for community development through the HIVE Fund. The fund was created in 2021 to provide more flexible financing opportunities for affordable housing development. In addition to $13 million in total CMF awards, the fund has secured over $7.3 million in grants and loans from EastRise Credit Union, the Federal Home Loan Bank of Boston, the Vermont Community Foundation, an anonymous philanthropic donor, and VHFA’s own contributions. These cornerstone investors have recognized the potential of private capital to more effectively leverage scarce public housing resources and attract new federal funds to Vermont.
“We are very grateful for the sustained support of our Capital Magnet Fund application from our congressional delegation, as well as the generous investments from the organizations and individuals contributing to the HIVE Fund,” said VHFA’s Executive Director Maura Collins. “As VHFA celebrates its 50th anniversary, we look forward to building new partnerships and creative solutions for housing all Vermonters in the years to come.”
Pictured: Bellows Falls Garage in Rockingham. The project received funding from VHFA’s first Capital Magnet Fund award. Photo courtesy of Windham & Windsor Housing Trust.