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Overview and application materials

butterfield commons
Butterfield Commons
Dover

Standards

Fees
The following fees apply to all LIHTC programs: Ceiling credit (9%), out-of-cap credit (4%) and state credit:

  • Application fee:
    $250
  • Reservation fee:
    4% of annual credit amount
  • Compliance monitoring:
    $4 per tax credit unit per month

Reservations and allocations
Extensive data on all tax credit projects since 1987

IRS Housing Credit percentages for May

70% present value credit: 7.80

30% present value credit: 3.34

More IRS Housing Credit percentages

 

Housing Credits in Vermont

Housing Credits have produced most of Vermont's recently-developed affordable rental housing. Since Vermont is a rural state, with little development capital available, the Housing Credits allocated since the program's inception in 1987 have made possible the construction and rehabilitation of much-needed rental housing which otherwise could not have been accomplished. Thousands of apartments targeted at households earning no more than 60 percent of the median income have been created or preserved.

The Housing Credit benefits Vermont's economy. Since the program's inception in 1987, the Housing Credits allocated in Vermont have resulted in millions of dollars in acquisition, development, and construction activity, benefiting the local and regional economies statewide.

Read a summary of historical Housing Credit activity.

Using Housing Credits

Credits are allocated based on eligible new construction and rehabilitation housing costs as defined by the Housing Credit program. Both nonprofit and for-profit project sponsors can then "sell" (syndicate) these credits to create equity for the rental housing development. The credits are sold to investors who purchase an ownership position in the project and thus are able to utilize the benefits of the tax credits. Because investors are purchasing the "present value" of ten years' worth of credits, the equity raised from syndicating tax credits can be substantial.

Allocating credits

VHFA is responsible for administering the Housing Credit program and allocates credits to specific projects in accordance with Vermont's Qualified Allocation Plan ( 98 KB; PDF ), which is approved and signed by the Governor. The advisory Joint Committee on Tax Credits reviews and adopts allocation policies and reviews VHFA's performance.

Compliance monitoring

Since 1994, VHFA has conducted compliance monitoring activities for the Housing Credit Program. Multifamily owners and managers whose properties received Housing Credits are responsible for complying with federal requirements associated with this program. VHFA staff conduct physical inspections, review tenant file documentation, and monitor IRS-based file retention requirements.

Read a summary of VHFA's historical asset management and monitoring activities.

For more information on compliance monitoring, contact Assistant Director of Multifamily Programs Kim Roy.

Vermont Affordable Housing Tax Credit

Developers can use the Vermont Affordable Housing Tax Credit program in tandem with the federal Housing Credit to assist in the creation and preservation of affordable rental housing.

Housing Credit application and resources

Applications are accepted on an ongoing basis and approved at monthly meetings of the VHFA Board of Commissioners.

Green building and design

VHFA worked with several partners, including Maine State Housing Authority and Efficiency Vermont, to develop these standards for green building and design for projects that submit applications to the Agency:
c. 2001-2008 vermont housing finance agency
opening doors to affordable housing - since 1974
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