A task force convened by the New Democrat Coalition, a group of moderate Democrats in the U.S. House of Representatives, has found that housing is becoming increasingly unaffordable and unavailable for many Americans. In the report, Missing Millions of Homes, the Coalition linked the lack of affordable housing to a combination of wage stagnation and decreased construction.
Legislation
Vermont House approves expanding popular VHFA down payment assistance program
Last week the Vermont House approved H. 922 which includes provisions from an earlier bill (H.766) that expands VHFA’s Down Payment Assistance Program. The bill is now passed over to the Senate and earlier this week was read and referred to the Senate Committee on Finance. Since the DPA program started in 2015, demand among qualified first-time home buyers has been twice what can be funded through the Vermont Affordable Housing Tax Credit, the program’s designated funding source.
Federal spending bill increases funding for housing
Last week, the federal government passed an omnibus bill funding the government for FY 2018. Funding for housing and homeless assistance programs exceeded what housing advocates had anticipated. Among the spending is a substantial boost to the Low-Income Housing Tax Credit program, which will see an increase of 12.5% to the annual state per capita credit allocation for the next four years. In addition, the bill contains $11.15 billion for project-based rental assistance, an increase of $50 million from FY 2017. These funding increases will be extremely helpful in VHFA’s efforts to expand access to decent, affordable housing.
Vermont mayors call for tax credit increase for Down Payment Assistance Program
The Vermont Mayors Coalition (VMC) met at the State House yesterday to announce their legislative priorities for 2018. One of their primary goals was to increase the availability and quality of affordable housing. To that end, VMC supports a $125,000 tax credit increase for the Vermont Down Payment Assistance Program, which is administered by Vermont Housing Finance Agency.
Legislature holds hearings on rental housing safety
The Vermont House Committee on General, Housing and Military Affairs is holding hearings on rental housing health and safety issues. The Committee will hear from tenants, advocates, and health and housing experts on their concerns regarding unsafe rental conditions and gaps in health code enforcement.
How will federal tax reform affect Vermonters?
VHFA's Sarah Carpenter and Maura Collins talked with reporters this week about likely impacts of the many provisions related to housing included in the federal tax reform bill passed this week.
Federal tax reform bill retains private activity bonds
The federal tax reform conference report released Friday preserves tax-exempt private activity bonds (PABs), including Housing Bonds, both single-family (and MCCs) and multifamily, according to reports from the Novogradac and the National Council of State Housing Agencies. PAB uses, authority, and carryforward rules are all unchanged as is the low-income housing tax credit program, the organizations reported.
The Senate and House are expected to vote on the final bill this week.
VAHC: House and Senate Tax Bills Will Decimate Affordable Housing In Vermont
The Vermont Affordable Housing Coalition (VAHC), a state leader in housing policy, research and advocacy, issued the following statement last week on the tax bill recently passed by the U.S. House of Representatives and under consideration in the Senate:
At a time when Vermont already has a shortage of 10,866 affordable homes for extremely low income renters and the 5th highest affordability gap for renters in the country, the pending tax proposals would eliminate tax credits and financing tools that have helped create thousands of affordable apartments in our state and made homeownership more affordable for thousands of Vermonters.
Vermonters weigh federal tax reform proposals
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.