VHFA Makes Homeownership Dreams a Reality with New Financing!
In a move that showcases its commitment to expanding homeownership across Vermont, the Vermont Housing Finance Agency (VHFA) Board of Commissioners has announced significant funding decisions. These are designed to enhance the housing landscape of the state, catering to various income groups.
The VHFA has designated Vermont State Affordable Housing Tax Credits specifically for homeownership development endeavors scattered throughout Vermont. The beauty of these credits lies in their potential: when acquired by investors, they are projected to produce nearly $3 million. This substantial sum will directly facilitate down payment assistance for both newly built single-family homes and substantially refurbished ones. Additionally, this initiative extends to energy-efficient manufactured homes, highlighting VHFA’s commitment to sustainability.
But that’s not all. The commissioners, in their proactive approach to addressing housing challenges, have also sanctioned an impressive sum of over $8.5 million. This funding will boost the “Missing Middle-Income Homeownership Development Program,” aiming to establish approximately 180 homes across various Vermont locations. When you piece everything together, it becomes clear that these strategic investments will spearhead the construction or significant overhaul of a minimum of 254 homes.
Maura Collins, VHFA Executive Director, conveyed the agency’s dedication to this cause, stating, “VHFA stands unwaveringly in its mission to bring forth innovative and lasting solutions, ensuring affordable homeownership for every Vermonter. Given the recent challenges, including the heart-wrenching summer floods, spiraling housing development expenses, and persistently climbing home prices, it’s paramount that we harness every available resource. Our trusted state housing tax credit program, coupled with the fresh ‘Missing Middle-Income Homeownership Development Program,’ offers a potent combination to address Vermont’s housing demands.”
Established back in 2000 and witnessing several expansions since then, the Vermont State Affordable Housing Tax Credit owes its inception to the Vermont Legislature. This credit plays a pivotal role in fostering the creation of budget-friendly rental spaces and homes for purchase, with a special emphasis on energy-efficient manufactured houses. Furthermore, these credits are meticulously crafted to provide down payment support, especially catering to the low- and moderate-income demographics aiming to buy homes. Given this year’s distressing flood incidents, the VHFA showcased its foresight by prioritizing flood resiliency while dispensing these state tax credits. This focus was crucial, especially in safeguarding Vermont’s manufactured home communities — regions that historically bear the brunt of climate change’s fury.
On the other hand, the “Missing Middle-Income Homeownership Development Program” is relatively new, launched in 2022. It rose from the need to offer modest housing solutions statewide, particularly addressing the aspirations of low and moderate-income households. This need was accentuated due to prolonged periods of insufficient investment in homeownership and the steady surge in median home prices. Under this program, homebuilders are enticed with subsidies and incentives to either craft new modest homes or rejuvenate existing ones, ensuring they are accessible to Vermonters earning up to 120% of the median area income. An exciting feature of this program is the permanence of the subsidies; they’re here to stay with the homes. Moreover, a considerable 42% (equivalent to $3.6 million) of the awards announced on September 25 is channeled towards the creation of Shared Equity homes. The program showcases a well-thought-out approach, prioritizing factors such as statewide geographic distribution, locations historically overlooked in affordable homeownership investments, energy efficiency, accessibility to essential services, revitalization of communities, new constructions in growth-centric areas, and the rejuvenation of natural landscapes.