Asset management and monitoring

As part of its ongoing obligations under its bond issuances, VHFA monitors 136 housing projects with a total of 4,656 units for long term financial viability; property maintenance; program compliance; preservation of market value; and long-term — if not perpetual — affordability. The loan portfolio balance for multi family is approximately $ 135.8 million, including current construction loans.

VHFA’s monitoring responsibilities include direct HUD HAP Contract Administration for $ 2.7 million of annual Section 8 rental subsidy payments for 376 of these units and VHFA shares HAP Contract Administration with the Vermont State Housing Authority and has oversight for an additional 1,436 units (with $10.4 million in subsidy). VHFA takes the lead role in projects where VHFA is the primary lender or responsible for tax credit compliance monitoring. VHFA monitors 177 projects with 3,672units for tax credit compliance and 68 of these have VHFA loans.

VHFA has also played an active role in negotiating Preservation Agreements with 77 property owners (2,253 units) to preserve and/or extend affordability or transfer these properties into long-term perpetually affordable ownership structures. This has been accomplished by new loans, debt restructuring, housing credits and by the reinvestment of VHFA earnings in long term deferred loans which are used to improve cash flows, rehabilitate projects, and/or to facilitate transfers of projects from private to non-profit ownership.