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The Vermont Housing Finance Agency (VHFA) was established in 1974 to finance and promote affordable housing opportunities for low- and moderate- income Vermonters. VHFA’s primary activities include: Single Family Mortgage Financing; Multifamily Programs including Development, Monitoring and HAP Contract Administration and Housing Tax Credit Administration. In addition, VHFA serves as a significant resource for the collection of housing data and frequently provides testimonial support in the development of housing policy at the state and federal level, along with assistance to affiliated housing organizations.
VHFA operates with an average staff size of 40 and receives no appropriation
of State funds. Its loan programs are funded primarily through the issuance
of tax-exempt bonds. VHFA operates on the net funds generated from fees
and interest income that amounts to the difference between its cost
of funds and the interest rate charged on its investment in loans. Bonds
issued by VHFA are secured by the cash flows of the underlying loans
made by the Agency, and are not obligations of the State of Vermont.
This year, VHFA’s activity and ability to fully carry out its
mission may be constrained by the allocation of the state’s private
activity bond cap which is increasingly being diverted for other uses.
This resource is critical for providing the type of long-term financing
VHFA borrowers need in tight credit markets.
Since its inception, VHFA has assisted about 26,000 Vermonters and their
families in purchasing primary residences and provided financing, development
and management support, subsidy administration and tax credits to 7,400
units of multifamily rental housing
VHFA's major activities include:
Single-family and homeownership mortgage financing programs
Below-market interest rates to eligible borrowers are offered through 37 participating lenders. VHFA offers some downpayment assistance options and provides support through the NeighborWorks® HomeOwnership Centers of Vermont. VHFA also has a homeownership construction loan program for qualified developers.
Read more about single-family and homeownership mortgage financing programs
Multifamily loan programs
Permanent and construction loans to qualified sponsors and developers are available for affordable rental housing. Rates are generally below market and long-term. VHFA also offers a predevelopment loan program for nonpropfit and for-profit developers.
Read more about multifamily loan programs
Federal and state Housing Tax Credit programs
VHFA is the administrator of the federal and state Housing Tax Credit programs. This provides for an equity investment in affordable rental housing.
Read more on Housing Tax Credits
Asset management and monitoring
VHFA provides asset management, compliance monitoring, and administration of all VHFA loan and housing credit units, as well as some project-based federal Section 8 rental assistance.
Read more about asset management and monitoring
Other VHFA initiatives
In addition, VHFA serves as lead agency of the Vermont Housing Awareness Campaign; developer and maintainer of the Vermont Housing Data Web site, including the Directory of Affordable Rental Housing; and more.
