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$10.3 million coming for affordable housing in Vermont

Posted by: VHFA on July 13, 2009 - 8:49am

union square
brookside villageThe U.S. Department of Treasury announced Friday that Vermont will be one recipient of a total of $468 million to benefit affordable housing nationwide.

Vermont Housing Finance Agency (VHFA) will receive $10.3 million in American Recovery and Reinvestment Act funding for housing in Colchester, Montpelier and Windsor.

“Vermont's been very fortunate to have great support from our local and regional banks and investors in providing tax credit equity for affordable rental housing – but they can't do it all," said Executive Director Sarah Carpenter.

"With Fannie Mae and Freddie Mac out of the national equity market, we desperately needed an alternate investment option like the tax credit exchange program.

"This will allow us to complete 130 units of affordable housing and leverage over $20 million in construction funding."

Vermont's funds will benefit three mixed-income housing projects: Brookside Village, 42 units, Colchester; North Branch Apartments, 45 units, Montpelier; and Union Square, 43 units, Windsor.

Those projects are expected to create approximately 175 construction jobs.

North Branch's redevelopment is vital to maintaining mixed-income housing in downtown Montpelier. The buildings — historic preservation and rehabilitation of newer construction — will receive significant updates to reduce energy costs for tenants and positively impact the carbon footprint of Montpelier's affordable housing stock.

Construction begins next month.

Brookside Village consists of 14 buildings on a flat wooded site overlooking the Winooski River.  Development of the property will preserve open space and walking trails, and  include an on-site storm water system to treat water running into an adjacent brook that's been classified as an "impaired" waterway.

Construction is approximately 30 percent complete.

Union Square is a 1920s four-story brick building listed on the National Register of Historic Places, originally constructed as mill worker housing.

For years the building had been in serious disrepair and was poorly managed.

Union Square's re-development into a mixed-income property under new management is the result of years of work on the local, regional and state levels.

Construction is approximately 75 percent complete.