Housing Investments for Vermont Fund

The Housing Investments for Vermont (HIVE) Fund was established in 2020 in recognition of a growing need for more flexible financing opportunities for affordable housing development. The fund has raised over $15.8 million in public and private capital and has supported the construction and rehabilitation of 1,198 affordable homes across the state. HIVE investments are meant to fill gaps in project budgets, allowing worthwhile housing projects to move forward despite complex and changing development conditions.

Previously known as the Vermont Housing Investment Fund (VHIF), the name was changed to the Housing Investments for VErmont (HIVE) Fund to reduce confusion with state programs with similar acronyms. HIVE symbolizes the collaborative and dynamic nature of the fund and embodies a swarm of activity, a collective, fueled by the partnership and participation of many. It is part of a legacy of solutions VHFA designs to meet the opportunities and challenges of a given time, but– like a HIVE – not one that we could have accomplished alone.

                                                               Pictured: HIVE loan recipient Bayview Crossing, South Hero.

Eligible Projects

Eligible projects will either:

  1. Qualify for housing credits under section 42 of the IRS code (Low Income Housing Tax Credits), and/or
  2. Have a minimum of 50% affordable units serving households below 80% AMI and affordability not to exceed 120% AMI for market rate units.

Loan Types

  • Loan Use / Purpose #1: Acquisition & Equity Bridge 

    • Acquisition or Equity Bridge financing for multifamily affordable rental projects, including new construction, acquisition, or substantial rehabilitation / preservation. Use as a first mortgage or as a second mortgage with VHFA as senior lender.
       

  • Loan Use / Purpose #2: Permanent Financing 

    • Permanent gap financing for multifamily affordable rental projects, including new construction, acquisition, or substantial rehabilitation / preservation. Projects leveraging the Vermont Housing Investment Fund (VHIF) will provide VHFA a first opportunity to serve as the permanent lender on the project. 

Other Program Documents

Questions? Reach out to [email protected] if you have any questions or comments.