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VHFA News

Posted by: Leslie Black-Plumeau on November 27, 2017 - 10:46am

The U.S. Census Bureau is offering Local Update of Census Addresses (LUCA) 2020 Workshops for Vermont cities and towns, in partnership with the Vermont State Data Center and the Vermont Center for Geographic Information. For your convenience, workshops will be hosted at two sites. A webinar is also being offered.  

During the LUCA 2020 Workshop, the Census Bureau will review the three options available for LUCA participation. It will discuss the free software tool available (GUPS) to review and update the census address list. This workshop will show municipalities how to prepare, register, and participate in this important program for their communities. The demonstration will provide concrete resources to help your city or town get an early start on LUCA 2020.

Workshop 1: November 30, 2017 (10am to Noon)

  • Montpelier, VT
  • Calvin Coolidge Room, 6th Floor, Davis Bldg
  • 1 National Life Drive, Montpelier, VT, 05620-0501 Link to info
  • To register, email Leslie Pelch

Workshop 2: December 1, 2017 (10am to Noon)

  • Park House (Activity Room)
  • 340 Recreation Park Road
  • Manchester Center VT 05255
  • To register, email Leslie Pelch

Webinar: December 06, 2017 (10am to Noon)

  • Join from your computer.
  • register online 

Questions? Contact Leslie Pelch

Posted by: Leslie Black-Plumeau on November 15, 2017 - 2:40pm

When the Senate and House released their initial tax reform proposals last week in Washington, Vermont's Congressional delegation went to work to protect valuable resources that are part of the tax code, such as private activity bonds and housing tax credits.  Tax programs are responsible for most affordable housing developed in Vermont in the past 30 years.

Although revisions are ongoing, both bills as they stand now would likely result in a 15% reduction in the funds the federal low-income housing tax credit generates for affordable rental housing development.  A number of other provisions in the bills would also impact the availability of funds for housing.  

Last Friday, Congressman Peter Welch, VHFA’s Executive Director Sarah Carpenter and partners from Vermont’s business, non-profit and government sectors discussed implications of the recent tax reform proposals.  Carpenter explained that using tax incentives to promote affordable housing was originally a product of president Ronald Reagan’s massive tax reform of 1986. “Congress at the time wanted to move away from government appropriations to tax incentives for housing,” she said. “It’s drawn a tremendous amount of private capital into real estate investment.” 

In 2016 alone, tax credits and proceeds from tax-exempt private activity bond financing created  approximately $35 million in equity for creating and rehabilitating 530 much-needed affordable apartments for low-income Vermonters across the state. Only about a quarter of the 77,000 renter households in Vermont have housing they can afford, with rents that consume 30% or less of income.

Posted by: Leslie Black-Plumeau on November 8, 2017 - 3:53pm

From the Vermont Affordable Housing Coalition -

Advocacy organizations from around New England, including the Vermont Affordable Housing Coalition, are announcing their opposition to provisions of the tax cut proposal released by Speaker Paul Ryan (R-WI) and Representative Kevin Brady (R-TX) last week.
 
“The House tax bill would have devastating impacts on the creation and preservation of affordable housing in Vermont,” said Sarah Carpenter, Executive Director of the Vermont Housing Finance Agency. “Almost 15,000 Vermonters in every region of the state live in safe, stable and affordable rental housing thanks to the federal Low Income Housing Tax Credit, which will be significantly weakened through this bill. The bill would also reduce low cost home mortgage and development financing offered by VHFA and the subsidies that come with those programs. Its passage would be a major setback in our efforts to alleviate Vermont’s dire shortage of affordable housing.”
 
At a time when we already have a regional shortage of 338,149 affordable rental homes for extremely low income households, the tax proposal would eliminate tax credits that have helped create hundreds of thousands of affordable homes for New Englanders with low and moderate incomes.
 
“This tax proposal would reduce private investment in affordable housing, worsen our regional housing crisis, and set up massive future budget cuts,” said Rachel Heller, CEO of the Citizens’ Housing and Planning Association in Massachusetts and coordinator of the New England Housing Network. “We need our federal representatives to reject these provisions and pursue real tax reform that helps address our housing crisis and protects struggling low- and moderate-income people.”
 
Vermont has a well documented need for more affordable housing across all income ranges.  The Vermont Futures Project of the Vermont Chamber of Commerce set a growth target of 5,000 new and improved housing units annually.  The legislatively mandated Roadmap to End Homelessness report calls for 180 new units of permanent supportive housing and 1,251 new homes affordable for extremely low income Vermonters over the next five years. 
 
“In response to an unprecedented need, Governor Scott proposed -- and both House Speaker Johnson and Senate Pro Tem Ashe supported and passed -- a historic $35 million housing bond earlier this year,” said Gus Seelig, Executive Director of the Vermont Housing and Conservation Board. “The bond relies on the leverage of these key federal tax credits and the reinvestment tax credit to produce 550 – 650 new affordable homes for Vermonters.  Without tax credit equity, which is the largest share of funding in affordable housing developments, we will fall far short of our goal, and affordable rental housing production will soon come to a grinding halt.”
 
In addition to significantly weakening the federal Housing Tax Credit, the House bill would eliminate the New Markets Tax Credits and Historic Tax Credits. “Housing and community development investments work together in revitalizing neighborhoods; neither investment can do it alone,” said Nancy Owens, President of Housing Vermont. “New Markets and Historic Tax Credits are indispensable tools in our efforts to revitalize Vermont’s downtowns and village centers and create and retain quality jobs for Vermonters.”
 
While the need remains enormous, we have been making progress. The annual Point-in-Time census of homelessness showed a 20 per cent decrease statewide over the last two years. “Vermont has long been a leader in affordable housing, and many of our communities are making progress in decreasing housing instability and homelessness,” said Sara Kobylenski of the Upper Valley Haven. “But, we cannot do this on our own. We need Congress to fully invest in resources that help people keep a roof over their heads. Instead, this bill would leave people out on the street and hurt our communities.”
 
The House tax proposal:

  • Significantly weakens the Low Income Housing Tax Credit, a successful public-private partnership that has become the foundation for affordable housing development across New England and the nation. While the credit itself is retained, it would be significantly weakened due to the corporate tax rate being significantly lowered. With less of a need for tax credits, the value of the Low Income Housing Tax Credit would drop, greatly reducing investments in low income housing by private companies. The tax proposal contains no changes to the credit that would help address this impact. This could mean an annual loss of over $4.5 million in subsidy in Vermont.
     
  • Eliminates the tax exemption on Private Activity Bonds, including multifamily and homeownership housing bonds for low and moderate income families. This tax exemption allows bond-financed multifamily rental projects to access ‘4% Housing Credits,’ which have helped produce or preserve tens of thousands of affordable homes in New England. In Vermont the elimination of bond credits could mean a loss of over $6 million a year in affordable rental housing subsidy.  The loss of tax-exempt housing bonds would also eliminate Mortgage Credit Certificates and some of the reduced interest mortgages offered by VHFA to Vermont homebuyers.
     
  • Eliminates the New Markets Tax Credit, a vital resource for community revitalization efforts in distressed areas. In Vermont, projects supported by the New Markets Tax Credit include Brooks House in Brattleboro, the Putnam Block in Bennington and the French Block in Montpelier, to name just a few.
     
  • Eliminates the Historic Rehabilitation Tax Credit, which has had a great impact on communities all across the state. This credit attracts developers to invest in once vacant, deteriorated, and underutilized structures and transforms them into much needed housing and commercial space. Hundreds of Vermont’s historic and iconic buildings have been returned to use, creating homes, jobs, and tens of millions in new local tax revenues.
     
  • Reforms the Mortgage Interest Deduction, which has been a long-standing effort of housing advocates and would ordinarily be a major step in the right direction. Unfortunately, the tax proposal uses the resulting savings to pay for tax cuts, not to fund new investments in affordable housing.
     
  • Increases the federal deficit by $1.5 trillion, putting immense pressure on lawmakers in future years to make massive cuts to programs benefiting low- and moderate-income people, include federal housing programs. 
Posted by: Will White on November 7, 2017 - 11:08am
clif logo

The Children's Literacy Foundation (CLiF) is now accepting applications for our At-Risk Children grant. This free grant opportunity is open to social service providers, early childhood education programs, childcare centers, school-based programs such as ELL classrooms and afterschool programs, family centers, community organizations, shelters, low-income housing and other programs throughout Vermont and New Hampshire that serve low-income or at-risk infants and children up to age 12 (or a segment of that age range). 

The grant includes a professional storytelling presentation, brand new, high quality books for children to choose at the event and take home to keep, and an onsite library for the organization. Many sites also choose to include a parent literacy discussion as part of their event to help families learn the importance of sharing books with children and strategies to do so, even if the parents are not strong readers themselves.

Eligibility: See the CLiF website for details and a list of our recent grant partners. If you have recently received an At-Risk grant, your site is eligible to reapply after three years (although if your program operates multiple sites you may apply on behalf of a different site location).    

Deadline: December 6, 2017

Application:  Our application is available online: https://clif.submittable.com/submit/94785/clif-spring-2018-at-risk-children-grant-application

 

Categories:
Posted by: Will White on November 3, 2017 - 3:15pm
dave adams poses in hardhat at groundbreaking

Cathedral Square Corporation, affordable housing partners and South Burlington officials came together this week to celebrate the start of construction of Allard Square.

The 39-unit apartment building is expected to be open to residents this time next year, with rents for the majority of units being well below market rate.

The gathering on Market Street in South Burlington’s City Center neighborhood featured a number of speakers, including VHFA’s very own Dave Adams, who has had a lasting presence at VHFA for almost 20 years.

Funding

At a $10.6 million total development cost, this was a perfect opportunity for VHFA to loan part of the million dollar grant provided by New England Federal Credit Union earlier this year.  By combining this loan with over $6.7 million in federal tax credit equity and $1.7 million as a permanent loan, VHFA is proud to be responsible for over 80% of the development funding for Allard Square.

Other funders include Vermont Housing & Conservation Board (VHCB), Vermont Community Development Program, Weinberg Foundation, South Burlington Housing Trust Fund, and TD Charitable Foundation.

Amenities

A kitchen, common areas, exercise and laundry facilities, and all other basic amenities will be available. Additionally, Allard Square will also have some unique features for its residents, including garden beds and access to the Support and Services at Home (SASH). Like most of Cathedral Square’s projects, Allard Square will be limited to senior citizens.

The building will increase affordable housing options for low income renters in the region while limiting its impact on the environment. Two units will be fully ADA accessible and the building will meet Efficiency Vermont’s High Performance Multifamily Building standard. Allard Square is being developed by Synder Braverman Development Company, who expects to have this project finished in fall 2018.

 

VHFA is a non-profit agency created in 1974 by the Vermont Legislature to finance and promote affordable housing opportunities for low- and moderate-income Vermonters. Since its inception, the Agency has helped approximately 29,000 Vermont households with affordable mortgages and financed the development of approximately 8,800 affordable rental apartments.

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