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 will either:
- Qualify for housing credits under section 42 of the IRS code (Low Income Housing Tax Credits), and/or
- Have a minimum of 50% affordable units serving households below 80% AMI and affordability not to exceed 120% AMI for market rate units.
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
Please reach out to [email protected] if you have any questions, comments or issues accessing the referenced materials.