Vermont Housing Investment Fund

Vermont Housing Finance Agency (VHFA) established the Vermont Housing Investment Fund (VHIF) in 2020 in recognition of a growing need for more flexible financing opportunities for affordable housing development. The fund has raised over $9.5 million in public and private capital. VHIF investments are intended to fill gaps in project budgets, allowing worthwhile housing projects to move forward despite complex and changing development conditions.

Pictured: River Bend apartments in Stowe, which received a VHIF loan

Eligible Projects

Eligible projects will either:

1. Qualify for housing credits under section 42 of the IRS code (Low Income Housing Tax Credits), and/or
2. Have a minimum of 50% affordable units serving households below 80% AMI and affordability not to exceed 120% AMI for market rate units.

Loan Types

• Loan Use / Purpose #1: Acquisition & Equity Bridge 

  • Acquisition or Equity Bridge financing for multifamily affordable rental projects, including new construction, acquisition, or substantial rehabilitation / preservation. Use as a first mortgage or as a second mortgage with VHFA as senior lender. 

• Loan Use / Purpose #2: Permanent Financing 

  • Permanent gap financing for multifamily affordable rental projects, including new construction, acquisition, or substantial rehabilitation / preservation. Projects leveraging the Vermont Housing Investment Fund (VHIF) will provide VHFA a first opportunity to serve as the permanent lender on the project. 

Other Program Documents

• VHIF Investment Policy
• Annual Reports
  • 2023 Annual Report
  • 2022 Annual Report

Please reach out to [email protected] if you have any questions, comments or issues accessing the referenced materials.