Traditionally Housing Vermont has sought investors on a project-by-project basis. However in 2003, due to general changes in the investment market, Housing Vermont formed the Green Mountain Housing Equity Fund with a total investment of $14 million from nine investors. The Fund’s dollars were spread out over nine projects and it provided an internal rate of return of 7.75%. Beyond creating a more flexible and familiar investment vehicle the formation of the Fund also allowed Housing Vermont to extend financing to projects in which we were no the co-developer.
Green Mountain Housing Equity Fund II was created in 2005 with total capitol of $22 million from the fund was closed in late 2006. In all, commitments were made to seven developments, which created 232 new homes for Vermonters. Housing Vermont’s third offering is scheduled to close in August of 2007 and is seeking a total investment of 28 million dollars.