Mon, 04/24/2023 – 9:44pm —
Vermont Business Magazine The Vermont Housing Finance Agency (VHFA) Board of Commissioners announced last week that its annual award of federal housing tax credits will support the construction of 112 homes in perpetually affordable apartment buildings in four communities across the state. The sale of this year’s tax credits to investors is expected to yield over $28 million in funds covering an estimated 60 percent of total project development costs.
These housing construction projects will take place in a uniquely challenging environment. Elevated development costs, interest rates and housing needs among Vermonters heavily influenced project planning. The cost of developing a unit of rental housing in Vermont has increased 36% since 2018.
“Safe, quality, affordable housing is a human right, period,” said Senator Bernie Sanders. “The good news is that when we invest in affordable housing – especially when combined with essential services for working families, seniors, and those experiencing or exiting homelessness, as is the case with this federal funding – entire communities benefit.”
Twenty-three of the apartments in these projects will be service-supported homes for people exiting or at-risk of homelessness. Since 2020, the number of people in Vermont experiencing homelessness has more than doubled, even tripling in some parts of the state.
“At a time when we are experiencing nothing short of a crisis of affordable housing in Vermont, I look forward to seeing all the good that comes from these critically important projects,” continued Senator Sanders.
“It is clear that an investment in housing is an investment in our economy and the health of Vermonters,” said Senator Welch. “These new, efficient and affordable homes will allow Vermonters to stay in their community and be connected with jobs, services and recreation.”
The apartments developed through this week’s award of federal tax credits will be located in Putney, West Rutland, St. Johnsbury and Burlington.
Alice Holway Drive apartments in Putney will be developed by Evernorth and Windham & Windsor Housing Trust and include 25 apartments. Nineteen apartments will serve very low, low and moderate income renters with five set aside for permanent, service-supported homes for people exiting or at risk of homelessness. Planning for this project involved extensive community collaboration and visioning for Putney Village.
