On Monday, Vermont Housing Finance Agency (VHFA) released the second 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 second 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. The public comment period is now open and will close Friday, Feb. 14 at 4:30 pm. There are two ways to comment:
- Virtual public comment meeting: Thursday, Feb. 6, 1:00-3:00 pm. Please join VHFA staff for a presentation on changes in the 2026-2027 QAP second draft, followed by discussion and public comment on the proposed updates. Please use this Zoom link for the meeting: https://us06web.zoom.us/j/83032646312.
- Written comments: Written comments on the QAP draft can be submitted via VHFA’s website. Comments can also be emailed to [email protected].
VHFA will host a meeting with the Joint Committee on Tax Credits on Monday, Feb. 10, 1:00-4:00 pm. The advisory Joint Committee on Tax Credits reviews and adopts allocation policies documented in the QAP. Please use this Zoom link for the meeting: https://us06web.zoom.us/j/85913737327.
VHFA started the process for this QAP update in June 2024. In response to feedback, in December 2024, VHFA revised the schedule for the update to release an additional draft and allow for more public comment. The updated schedule adds about one month to the QAP update timeline. The updated schedule and next steps are as follows:
- January 27, 2025: VHFA releases second draft of 2026-2027 QAP and opens third public comment period.
- February 6, 2025: VHFA holds virtual public comment meeting.
- February 10, 2025: VHFA hosts meeting with the Joint Committee on Tax Credits.
- February 14, 2025: VHFA closes the third public comment period at 4:30 pm.
- February 24, 2025: VHFA releases final draft of 2026-2027 QAP.
- March 20, 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.
About the Low-Income Housing Tax Credit and QAP
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 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.