Multifamily loan programs

Loans on multifamily housing projects are made directly by VHFA staff to community-based or statewide nonprofit agencies or organizations and private for-profit developers who are committed to creating and preserving housing to low and moderate income Vermonters.

Funding

Acquisition, rehab, construction and construction/permanent loans made by VHFA are primarily made in conjunction with the allocation of federal housing tax credits.

Most projects are funded through the issuance of tax-exempt bonds but also require public or private funding sources as well.

Pre-development loans

In March 2010, VHFA began making pre-development loans, as well as energy/rehab and equity bridge loans, through funding from the MacArthur Foundation.

The Agency's Ventures pre-development loan program remains on hold since its suspension in December 2008 due to the global economic crisis.

Underwriting criteria

VHFA has the responsibility of underwriting projects to be sure projects are properly built within budgeted constraints, completed within the stated time frame, and meet affordability covenants.

VHFA's underwriting analysis looks beyond compliance with program rules and target marketing. An in-depth review is done of the underlying project assumptions, need for the project, demand for the project, acquisition and rehab/construction costs and long term financial viability.

VHFA has established underwriting standards that are intended to balance credit risk to maintain a high bond rating, while providing the flexibility needed to meet a wide diversity of projects, and yet meet the needs of bond investors to make capital investment in Vermont attractive.

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Downtown Crossing, Bennington