Housing Credit Program

2025 Housing Credit Application Due Dates

Due dates for 2025 Ceiling Credit and State Credit applications are as follows. Bond Credit projects not pursuing State Rental Credits can be processed on a rolling basis.

Housing Credit - Pre-Applications and Applications

• Pre-applications: Pre-applications are required for Ceiling Credits, Bond Credits, and State Rental Credits. More information is available on the pre-application page.
• Applications: For all Ceiling Credit, Bond Credit, and State Rental Credit applications, please use the Common Application.
• Other resources: Additional materials relevant to Housing Credit applications can be found on the following pages:
  • 2024-2025 Qualified Allocation Plan (QAP)
  • Allocations and Reservations
  • Housing Credit Program Materials
  • VHFA Asset Management - Forms and Documents
  • VHFA Underwriting Standards

Background & Housing Credits in Vermont

The Housing Tax Credit was designed by Congress to help create and preserve affordable rental housing for lower income households. It provides a direct cost-based reduction in federal tax liability over a 10-year period for owners of qualifying rental housing who agree to conform to certain operating restrictions for a 15-year period or longer.

The Tax Reform Act of 1986 set a maximum housing credit allocation for each state based on population. Vermont’s 2023 allocation is $3.19 million.

Housing Tax Credits (also known as federal Low-Income Housing Tax Credits {LIHTC}) bring substantial equity investment into Vermont's housing market. Housing Tax Credits have produced most of Vermont's affordable rental housing developed since the program's inception in 1987. Since Vermont is a rural state with little development capital available, the credits allocated have been a very effective means of raising equity capital for the construction and rehabilitation of much-needed rental housing. Thousands of apartments have been created or preserved to target households earning 60 percent of the median income or less.

Housing Tax Credits also benefit Vermont's economy. Credits allocated in Vermont have resulted in millions of dollars in acquisition, development, and construction activity, benefiting local and regional economies statewide.