Housing Investments for Vermont Fund

Vermont Housing Finance Agency (VHFA) established the Housing Investments for Vermont (HIVE) Fund 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 or rehabilitation of 1,198 affordable homes across the state. HIVE investments are intended to fill gaps in project budgets, allowing worthwhile housing projects to move forward despite complex and changing development conditions.

Pictured: Bayview Crossing in South Hero, which received a HIVE loan

 

Why the new name?

We’ve recently changed the name of VHFA's investment fund from the Vermont Housing Investment Fund (VHIF) to the Housing Investments for VErmont (HIVE) Fund. The name change will help reduce confusion with state programs with similar acronyms and to better symbolize the collaborate and dynamic nature of the fund. The HIVE Fund embodies a swarm of activity, a collective, fueled by the partnership and participation of many individual actors. Housing Investments for Vermont 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.

 

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

 

Please reach out to [email protected] if you have any questions or comments.