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State housing tax credits on the chopping block

Posted by: VHFA on 3/11/2010

sarah carpenterVermont affordable housing advocates, including VHFA Executive Director Sarah Carpenter, are testifying to the House Ways and Means Committee today.

The subject is the House tax expenditure budget bill, which proposes to eliminate the state Affordable Housing Tax Credit, along with the Charitable Housing Tax Credit and Mobile Home Park Sale Credit.

Federal housing credits have been responsible for most of the affordable housing development in the nation, including Vermont, since Congress created the program in 1987.

Since Vermont established its state credit program in 2000, VHFA has allocated $2.7 million in state credits to projects totaling 947 housing units. Those credits have raised $11.18 million in equity from the private market at an average yield of $0.83 and had a total development cost of more than $162 million.

In addition, building the housing with these credits has generated approximately $340 million in income for Vermont businesses and at least 1,500 Vermont jobs were likely created or supported from this activity.

Furthermore, the House bill puts in jeopardy 10 housing projects in the pipeline. Those projects contain a total of nearly 200 units — all forward allocated state tax credits for FY2011.

VHFA is the allocating agency for federal and state tax credits.

Today’s hearings are open to the public. They’ll be held from 3:30 to 5 p.m. and 6 to 8 p.m. in Room 11 of the Statehouse.

Download the tax bill as a PDF document.