2023 Housing Credit Application Due Dates
Pre-application meetings, pre-application materials and site visits for the 2023 Ceiling Credit round will be due November 18, 2022. Site visits can be coordinated with other funding agencies as needed. Ceiling credit and State credit application due dates are as follows:
Pre-application & Application materials can be found on the VHFA website here.
Bond Credit projects not pursuing State Rental Credits can be processed on a rolling basis.
Background
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.
Housing Credits in Vermont
The Tax Reform Act of 1986 set a maximum housing credit allocation for each state based on population. Vermont’s 2017 allocation is $2.71 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.