Middle-Income Homeownership Development Program

The Middle-Income Homeownership Development Program provides financial incentives and resources to support the construction or rehabilitation of modest homes for purchase by Vermont households earning up to 120% of the Area Median Income (AMI). The program includes two components:

1. Construction Guarantee that provides construction loan guarantees for up to 15% of the development costs for program eligible homes; and
2. Development Subsidy that provides up to 35% of development costs for program eligible homes.

The program was created by the Vermont Legislature and Governor Phil Scott in 2022, and is funded through the American Rescue Plan Act (ARPA).

To date, the Middle-Income Homeownership Development Program (MIHDP) has held two rounds of applications for funding:

• Round 1: In March 2023, the VHFA Board of Commissioners awarded $14.2 million to 12 homeownership projects, which will create 92 homes across eight counties. The projects funded consist of various types of homes, including townhomes, condominiums, single-family, and modular. Learn more about projects awarded in Round 1.
• Round 2: As part of the Budget Adjustment Act in 2023, the program received an additional $9 million in funding. In September 2023, the VHFA Board of Commissioners awarded this funding to 12 homeownership projects, which will create 180 homes across eight counties (some of these homes also received partial funding during the first round of MIHDP awards). Learn more about projects awarded in Round 2.

All currently available funds for this program have been awarded.

For additional information about the Middle-Income Homeownership Development Program, please see the materials below. Please note that these documents refer to this program by its earlier name, which was the Missing Middle-Income Homeownership Development Program. 

• Program Guidelines
• Application Materials:
  • Application
  • Development Budget
• Compliance Documents:
  • Missing Middle-Income Housing Subsidy Covenant
  • Compliance Affidavit for Missing Middle
    • Link to Homeownership Centers
    • Link to VHFA Federal Act Income Worksheet
• Recorded webinar: May 25 Missing Middle-Income presentation
• Press releases:
  • September 26, 2023: VHFA announces innovative funding and state tax credit awards for 254 homes
  • May 17, 2023: Missing Middle-Income Development Program Reopens
  • March 15, 2023: Innovative state program funds new homes for middle- and lower-income Vermont buyers
  • December 13, 2022: New program launches to increase homeownership opportunities for Vermonters
  • June 13, 2022: Public feedback sought for Missing Middle Homeownership Program

Please contact staff at [email protected] with questions.