Loan programs

Construction and permanent loans

VHFA offers low interest construction and permanent mortgage financing for the development and preservation of affordable rental housing. Specific requirements regarding rent restrictions and qualifying household income may vary with the funding source. However, all developments must serve at least 51% low- and moderate-income households. Funds usually come from a number of sources including:

  • Proceeds from the sale of tax-exempt or taxable bonds
  • Federal Home Loan Bank non-member advances
  • Pension fund mortgage pools
  • VHFA reserves

Eligibility for multifamily financing programs

The housing sponsor must be organized on a limited profit or a nonprofit basis and approved by VHFA as qualified to own, construct, acquire, rehabilitate, operate, manage or maintain residential housing.

Eligible projects

Rental housing properties eligible for VHFA financing can include the following:

  • Conventional living units
  • Transitional housing
  • Congregate homes for the elderly
  • Mobile home parks
  • Single Room Occupancy (SRO) units
  • Special needs housing
  • Emergency shelters
  • Residential care facilities
  • Cooperative housing
  • Nursing homes

Standards

Monitoring

Important: VHFA multifamily permanent loans are subject to monitoring, insurance, budget, and audit requirements.

Application and fees

In 2007 VHFA, Vermont Housing and Conservation Board, and Vermont Community Development Program unveiled the new Common Application (below) for developers of multifamily and single family housing projects.

This application should be used for all projects and may be submitted to each organization.

MacArthur preservation loans

VHFA is pleased to make funds available from the MacArthur Foundation. Read this introductory letter from Director of Development Joe Erdelyi (44 KB; PDF).

main street mill, richford

Main Street Mill, Richford