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Posted by: Mia Watson on 6/29/2018

Residents, staff, and supporters gathered in Brattleboro last week for a ribbon-cutting celebration at Great River Terrace. The project, sponsored Windham & Windsor Housing Trust (WWHT), created 22 affordable apartments for homeless and very low income Vermonters. The $4.6 million project was funded in part by federal and state tax credits and a construction loan awarded by VHFA.

The development converts the former Lamplighter Inn, an extended stay motel, into 22 efficiency and one-bedroom rental apartments. The apartments will be reserved for the homeless or at-risk households. WWHT will partner with Healthcare and Rehabilitation Services to provide mental health and substance abuse counseling, and with Groundworks Collaborative to provide budgeting assistance and basic life skill support to residents.

 “Vermont Housing Finance Agency has prioritized funding for permanent supportive housing developments for people who are homeless or at-risk,” remarked VHFA Deputy Director Maura Collins, who attended the ribbon-cutting event.  “Great River Terrace is a prime example of that commitment.”

The project completely overhauled the existing structure, replacing it with energy-efficient materials and rooftop solar panels. A newly constructed community building will offer office space for the on-site supportive services, laundry space, a community living room, and a community kitchen.

This project also received funding from Vermont Housing and Conservation Board (VHCB), the Vermont Community Development Program, the National Housing Trust Fund, and the U.S. Department of Housing and Urban Development’s (HUD) HOME program.

Posted by: Mia Watson on 6/26/2018

Residents of Parkview Apartments in Newport celebrated energy-efficient improvements to their apartment complex at a ribbon-cutting ceremony held last week. The $3.1 million project was overseen by RuralEdge, which owns the twelve affordable units. The project was supported by Vermont Housing Finance Agency (VHFA), which awarded state and federal tax credits as well as a construction loan.

The renovations include rooftop solar panels, updated heating and cooling systems, new windows and doors, and improved insulation, transforming the complex into one of the most energy-efficient affordable housing developments in the state. Prior to the renovations, the units had electric storage heat, which led to high utility bills. The weatherization and energy upgrades will dramatically reduce heating and cooling costs, making the apartments even more affordable for its low-income tenants.

Residents are also enjoying updated kitchens and bathrooms, a newly paved driveway and parking spaces, and an upcoming update to the neighborhood playground. These renovations bring the complex, originally constructed in 1980, up to modern energy-efficiency, safety, and accessibility standards.

This project also received funding from USDA Rural Development and Vermont Housing & Conservation Board (VHCB).


Posted by: Mia Watson on 6/21/2018

The annual report on housing from the Joint Center for Housing Studies of Harvard University (JCHS) reveals that although homeownership rates are beginning to climb, young adults are finding it increasingly difficult to afford to buy their first home. The report found that from 1990 to 2016 the median home price rose 41 percent faster than overall inflation, outpacing wage growth during the same period. Homeownership rates among young adults today are lower than they were before the recession. This report comes as VHFA and many in the lending, real estate, and housing communities recognize June as national Homeownership Month.

The past decade was marked by rapidly increasing demand for rental housing. As the economy has improved, households are now slowly beginning to reenter the homebuyer market. However, the inventory of existing single-family homes for sale across the country is currently at the lowest level since the National Association of Realtors began tracking national sales in 1982. Lower-cost homes are especially scarce. A major factor responsible for the limited inventory is the slow pace of new construction of single-family homes, which the report attributes to continued builder caution following the 2008 housing market crash, increasing construction costs, and a dwindling supply of buildable lots in metro areas where demand is highest.

Barriers to enter homeownership also put pressure on the rental housing market. The large number of households that are still struggling to enter homeownership and remain in rental housing contribute to low vacancy rates and higher rents. JCHS reports that nearly 48 percent of renters nationwide pay more than a third of their income towards housing costs, which exceeds the federal standard of affordability. When households pay more than 30 percent of their income on rent, it can be difficult to afford other basic necessities such as food, transportation, and healthcare.

Increasing income inequality is a key factor in the overall housing affordability crisis. Since the late 1980s, the median income among Americans in the key home buying age bracket of 25-34 increased only 5 percent overall when adjusted for inflation. That increase is well under the 52 percent growth in the overall United States economy (based on GDP per capita) during that time.

The report argues that programs supporting homeownership are necessary to confront a growing national affordability crisis. The ability to save enough to afford a down payment and closing costs is a significant barrier for first-time homebuyers. Affordable housing organizations like Vermont Housing Finance Agency (VHFA), which offers low down payment mortgage loans and down payment and closing cost assistance, and NeighborWorks(R) Homeownership Centers, which provide financial readiness, home buyer education, and assistance programs are critical for helping young home buyers purchase their first home.


Posted by: Mia Watson on 6/19/2018

Residents of Heritage Courts in Poultney are celebrating the recent renovation of their apartment complex. The $3.1 million project was managed by the Housing Trust of Rutland County, which owns the property. The project was funded in large part by VHFA, which awarded both state and federal tax credits as well as loans. This renovation allows Housing Trust of Rutland County to preserve 17 affordable apartments for seniors while significantly improving the energy-efficiency of the complex.

“We were pleased to be able to assist with the renovation,” remarked VHFA Deputy Director Maura Collins, who attended the project’s open house last week. “Modernization projects like this one are critical for preserving Vermont’s limited supply of affordable, rural rental housing.”

Renovations include a new heating system, improved insulation, replacement windows and doors, roof and siding replacement, and modernization of kitchens with new, energy-efficient appliances. In addition to improving the comfort and appearance of the units, the improvements are expected to yield a 45 percent reduction in operating costs.

The renovation will add a community room, accessible laundry facilities, and a community garden.  Housing Trust of Rutland County will also offer SASH® (Support and Services at Home) resources to help residents maintain independence and quality of life.

This project also received funding from Vermont Housing and Conservation Board (VHCB), the National Housing Trust Fund, and the U.S. Department of Housing and Urban Development’s (HUD) HOME program.

Photo from Kate Barcellos, Rutland Herald. Pictured from left: Rosie McManus, resident; Katie Buckley, Commissioner of the VT Department of Housing and Development; Maura Collins, Deputy Director of the Vermont Housing Finance Agency.

Posted by: Mia Watson on 6/14/2018

The latest edition of the annual report on rental housing affordability from the National Low Income Housing Coalition and the Vermont Affordable Housing Coalition has found that Vermont has one of the highest gaps in the nation between the cost of rent and renter wages. Out of Reach: The High Cost of Housing reports that for a Vermont renter to be able to afford a modest two bedroom apartment, he or she would need to earn $22.40 per hour, well above the average renter wage.

This estimate is known as the Housing Wage. The Housing Wage is the hourly wage a household must earn while working 40 hours a week to be able to rent an apartment at HUD's Fair Market Rent and pay no more than 30% of its income towards housing costs including utilities. In Vermont, Fair Market Rent is $1,165 for a two bedroom apartment. When households pay more than 30% of their income on rent, it can be difficult to afford other basic necessities such as food, transportation, and healthcare.

To afford a two bedroom apartment at Fair Market Rent, a Vermont renter would need to earn $22.40 per hour, or about $46,600 annually. Some areas of Vermont are even less affordable, with Chittenden County’s Housing Wage at $27.32 per hour. For context, Vermont minimum wage is $10.50 per hour, with the average Vermont renter earning just $12.85 per hour. This means that thousands of working Vermont households are struggling to find decent, affordable apartments.

Although this problem is widespread throughout the country, Vermont’s affordability gap is particularly severe. The $9.55 gap between the two bedroom Housing Wage in Vermont and the average renter wage is the 5th highest in the nation, higher than in Massachusetts, Connecticut, Maine, and New Hampshire. As in other states, Vermont’s lack of affordable rental housing is driven by a lack of existing rental housing stock and limited new development of non-luxury properties.

Vermont Senator Bernie Sanders, who wrote the preface to the report, argued that, “The affordable housing crisis demands that we think big and act boldly. We must make a historic and sustained commitment to ensure that every family has an affordable place to live and thrive. This starts with significantly expanding federal investments in affordable housing through programs like the National Housing Trust Fund, the HOME program and other critically important resources.”

For more information, read the Vermont Affordable Housing Coalition’s (VAHC) analysis.