Today, Vermont Housing Finance Agency (VHFA) released a draft of the 2026-2027 Qualified Allocation Plan (QAP), which guides the Agency in making housing tax credit allocation decisions. Materials about the QAP update, including the full draft of the 2026-2027 QAP, a memo that summarizes changes in this draft, and the current 2024-2025 QAP, are available on the VHFA website.
VHFA is asking for public comment on this draft, and the second public comment period is open starting today and closing Friday, Dec. 6 at 4:30 pm. There are two ways to comment:
- Virtual public comment meeting: Thursday, Nov. 21, 2:00-4:00 pm. Please join VHFA staff for a presentation on changes in the 2026-2027 QAP draft, followed by discussion and public comment on the proposed updates. Please use this Zoom link for the meeting: https://us06web.zoom.us/j/88631393816.
- Written comments: Written comments on the QAP draft can be submitted via VHFA’s website. Comments can also be emailed to [email protected].
VHFA started the process for this QAP update in June 2024. Over the summer, VHFA staff held five public comment meetings around the state and virtually to discuss changes to consider in developing the draft QAP, and also received written public comments. A summary of those verbal and written public comments is available on the VHFA website, and VHFA will be posting responses to comments received during this initial period by Nov. 8.
In developing the draft 2026-2027 QAP, VHFA staff considered these public comments, discussion from the VHFA Board of Commissioners, other state housing finance agency QAPs, and national policies and best practices.
The timeline for the 2026-2027 QAP update, including next steps, is as follows:
- June 4, 2024: VHFA opens initial comment period.
- July and August 2024: VHFA holds initial public comment meetings.
- August 13, 2024: VHFA closes the initial comment period at 4:30 pm.
- Summer and Fall 2024: VHFA reviews comments and drafts 2026-2027 QAP.
- November 4, 2024: VHFA presents recommendations to the Joint Committee on Tax Credits.
- November 5, 2024: VHFA makes draft of 2026-2027 QAP available, and opens second public comment period.
- November 21, 2024: VHFA holds public comment meeting.
- December 6, 2024: VHFA closes the second public comment period at 4:30 pm.
- Late 2024/early 2025: VHFA revises draft 2026-2027 QAP, and releases final draft.
- January 2025: Second meeting of Joint Committee on Tax Credits.
- February 2025: Meeting of VHFA Board of Commissioners. If adopted, the 2026-2027 QAP will be sent to the Governor for approval.
- VHFA’s goal is to have the QAP approved a year in advance of 2026 applications to ensure potential applicants have time to consider any updates in planning 2026 projects.
The federal Low-Income Housing Tax Credit (LIHTC) program is the largest single source of funding for affordable housing development in Vermont. The program requires that each tax credit allocating agency maintain a QAP that sets eligibility and criteria for awarding tax credits to developers of affordable housing. The QAP is a compilation of IRS mandates, national best practices, and state housing priorities.
In Vermont, VHFA updates the QAP every two years. The process includes VHFA convening the Joint Committee on Tax Credits, which solicits public feedback, reviews the policies in the QAP, and makes recommendations to the VHFA Board of Commissioners. The Board votes to adopt the plan and sends the plan to the Governor for approval.
Photo of Firehouse Apartments in Bristol, which was financed using Low-Income Housing Tax Credits allocated by VHFA.