VHFA underwrites developments to ensure that they are properly built, completed within budgeted constraints and the stated time frame, and meet affordability covenants. Underwriting looks beyond compliance with program rules and target marketing. It includes an in-depth review of underlying project assumptions, demand for the project, acquisition and rehab/construction costs, as well as long-term financial viability.
VHFA's underwriting standards are intended to balance credit risk to maintain a high bond rating with providing the flexibility needed by a wide variety of projects. These standards also meet the needs of bond investors, to help make capital investment in Vermont attractive.
Standards
VHFA has released updates to its Appraisal Standards, Market Study Standards, and Underwriting Standards. These standards will be effective starting in 2025 and, therefore, applicable to all 2025 project applications. Please review the updated standards and reach out to VHFA’s Development Team at [email protected] if you have any questions or foresee issues with your upcoming projects meeting these standards.
- VHFA Appraisal Standards (effective through December 2024)
- NEW - VHFA Appraisal Standards (effective January 1, 2025)
- VHFA Market Study Standards (effective through December 2024)
- NEW - VHFA Market Study Standards (effective January 1, 2025)
- NEW - VHFA Market Study Checklist (effective January 1, 2025)
- VHFA Underwriting Standards (effective through December 2024)
- NEW - VHFA Underwriting Standards (effective January 1, 2025)
- Capital needs assessments
- Housing Tax Credit year 15 policy - incl. Qualified Contract Process
- Operating expense guidelines
- Replacement reserve surplus cash distributions
Supportive Services
Design elements
- VHCB/VHFA Building Design Standards
- Energy efficiency
- Qualified Allocation Plan (summarizes other elements such as special needs and universal design)
- Universal Design Policy
- Universal Design - Fillable Checklist
Developers should also be aware of fair housing laws including, but not limited to, Fair Housing Amendments Act of 1988, Section 504, and Vermont accessibility standards.