WASHINGTON, D.C. – (RealEstateRama) — VHFA’s Executive Director Sarah Carpenter announced today that interested parties are invited to submit comments on how housing tax credits are allocated. Housing tax credits are Vermont’s primary funding source for developing affordable rental housing. The comments will be considered during this year’s upcoming revisions to Vermont’s Qualified Allocation Plan (QAP).
As administrator of the housing tax credit program, VHFA allocates credits to specific projects in accordance with identified State needs and Federal requirements outlined in the Vermont QAP. Vermont’s inter-agency Joint Committee on Tax Credits reviews allocation policies and process and makes recommendations on the QAP to VHFA’s Board of Commissioners. Using the QAP as a guide for prioritizing applications, the VHFA Board of Commissioners awards tax credits each year for specific rental housing development projects.
This series of graphs and tables is available to help commenters develop an understanding of the needs of different types of Vermont household for affordable rental housing.
Housing credits offer investors a multi-year tax credit in return for upfront equity that is used in turn to construct or rehabilitate rental housing. Rental housing developed with funds raised from housing credits must be affordable and occupied by low income households. VHFA monitors all housing developed through housing credits to ensure compliance with federal and state requirements.
Studies have long shown that the need for affordable rental housing across Vermont far outweighs the availability of funds to meet this need. For this reason, the prioritization assigned to various types of projects as stipulated by the QAP is extremely important. Interested parties are encouraged to review the existing QAP and submit comments about any changes needed to ensure that competing applications are prioritized in the way that best serves Vermonters’ most pressing needs. Comments should be submitted to Joseph Erdelyi, VHFA’s Development Director, by November 1, 2016.