Vermont Housing Finance Agency and the Vermont State Treasurer’s Office have initiated a $50 million partnership for deploying funding made available through the Local Investment Advisory Committee (or 10% for Vermont) initiative. The $50 million is available to developers and builders in Vermont through short-term and long-term debt with interest rates that are substantially lower than market rates.
The application process and timeline for deployment of these funds varies by the proposed use and housing type. For some proposed uses, applications submitted to the Treasurer in June 2023 exceed the amount available, and VHFA may not be seeking additional applications. Below is information about the types of projects eligible for financing, the status of the pipeline, and expected application and potential award dates.
- Traditional affordable housing, including first lien mortgages, gap loans, and construction financing for rental projects with units serving households at or below 60% Area Median Income.
- Priority economic development projects, supporting households between 65%-120% Area Median Income that demonstrate broader economic impact, support of municipal infrastructure, or partnerships with employers.
- Small and emerging developers of smaller or infill housing developments, common in rural areas of the state. By supporting more types of housing developers, this investment will expand the state’s long-term capacity for creating much-needed housing. Programming also will focus on emerging BIPOC developers.
- Homeownership development, including subsidized loans and site infrastructure improvements (such as water, sewer, and sidewalks) through the Missing-Middle Income Homeownership Development Program.
- Manufactured housing communities, focusing on cooperatively and non-profit owned communities by providing much-needed below-market rate loans.
The table below outlines the expected application and award dates for projects, and is subject to change and update.
| Project Type | Application Open Date | Expected Award Date |
|
Traditional Affordable |
N/A - Full Pipeline | Dec. 2023 - April 2024 |
| Priority Economic Development Housing Projects | N/A - Full Pipeline | Feb. 2024 (initial selections to initiate deal structuring) |
| Small and Emerging Developers |
Rolling until fully subscribed |
Rolling awards in 2024 - 2025 |
| Homeownership Development | N/A - Full Pipeline | March 2024 |
| Manufactured Housing Communities | N/A - Full Pipeline | March 2024 |
Layering:
Developers applying for LIAC may also apply for the Rental Revolving Loan Fund (RRLF), and layer these sources when projects meet the goals and objectives of both programs.
For more information:
- LIAC Priority Economic Development Housing Projects (PDF): information for applicants
- Housing development funding forums that VHFA held in fall 2023 (including recorded presentation)
- September 2023 press release: Vermont Treasurer's Office makes historic investment in home building
- Rental Revolving Loan Fund (RRLF)