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Legislative victories expected for housing tax credit and HOME program

Posted by: Leslie Black-Plumeau on 12/16/2015

Two measures that help address the affordable housing needs of low-income Vermonters are likely to be passed in federal tax and omnibus spending bills on Capitol Hill this month.

The tax bill makes permanent the 9 percent minimum Low-Income Housing Tax Credit rate. A fixed minimum rate will bring much-needed predictability to the process of developing affordable rental housing.

The new spending bill funds the HOME program at $950 million in FY 2016, an increase of $50 million over its FY 2015 appropriation.  This comes after a move to severely cut HOME program funds this fall.  HOME funds are a vital source of financing for roughly 25 percent of all affordable rental housing recently developed in Vermont.

Due to the clear gains both programs have made in creating affordable housing, VHFA advocated for both of these measures this year, working with Vermont's congressional delegation and the National Association of State Housing Agencies.