Housing Vermont’s capacity to provide equity for its strong pipeline of affordable housing developments has been improved substantially with the creation of a $15 million proprietary equity fund with People’s United Bank.
“People’s United Bank has a long-standing and successful relationship with Housing Vermont, and we are pleased to provide this major commitment of low-income housing equity in support of affordable housing in Vermont,” said Art Casavant, Vice President and Community Reinvestment Officer for People’s United. “This important extension of capital will allow us to meet community needs and support an important partner,” Casavant said.
On February 13, the Treasury Department announced that Vermont Rural Ventures, a subsidiary of Housing Vermont, was awarded a $60 million allocation of New Markets Tax Credits (NMTC) to continue its successful economic development work in low-income areas.
“This award will allow us to invest in expanding businesses which create or retain good jobs,” said Housing Vermont President, Nancy Owens. “Our economic development work has been incredibly successful and this investment will allow us to further that work in rural communities throughout the state.”
Under the NMTC program, investors receive federal tax credits in exchange for making investments in eligible economic development projects. These business and real estate investments provide more favorable terms and conditions than the market typically offers.
Competition for the NMTC awards was stiff. The Community Development Financial Institutions Fund, the arm of Treasury that operates the program, received applications from 230 organizations requesting a total of approximately $16.2 billion in allocations. Only 73 applicants (32 percent of the total applicant pool) were awarded allocations that ranged from $15 million to $75 million. Continue reading
The TD Charitable Foundation has awarded Housing Vermont a $100,000 grant to create home ownership opportunities while improving neighborhoods through the rehabilitation of dilapidated or vacant homes.
In presenting the check, TD Bank Market President Phil Daniels congratulated Housing Vermont for its successful application to the highly competitive TD Charitable Foundation Major Grant program.
Housing Vermont will use the award to help finance its Neighborhood Housing Fund. This new initiative will serve two objectives: creating home ownership opportunities for lower income households, and improving neighborhoods through the rehabilitation of dilapidated or vacant homes.
Homelessness has serious implications for families and communities. Preventing homelessness by limiting evictions would avoid negative consequences to families and communities while reducing demand on scarce public resources for responding to homelessness.
Housing Vermont (HV), Vermont’s largest multi-family affordable housing owner/developer, has completed an eviction prevention study to better describe the frequency and causes of evictions in Vermont, including “negative exits” like abandonment and move-outs that occur before the formal court eviction process is completed. The objectives were to better understand the eviction landscape, and identify where practices could prevent evictions before individuals become homeless.
HOLLY PELCZYNSKI – BENNINGTON BANNER
A chamber of commerce, picture-perfect day formed the backdrop for the October 12 celebration of the completion of extensive improvements to Bennington’s Applegate Apartments.
The 104-unit Applegate Apartments is among the largest affordable housing developments in Vermont. It was also the highest residential fuel oil user in Bennington County, consuming an average of 50,000 gallons of heating oil annually. Annual fuel costs in recent years were as great as $175,000, equivalent to $140 per apartment each month.
“The rising cost of fuel oil posed a real threat to the financial viability of the development,” said Kenn Sassorossi, Housing Vermont Vice President for Partner Relations. “Shires Housing and Housing Vermont clearly understood that making energy efficiency the core of the rehabilitation scope of work was absolutely essential to the long term sustainability of Applegate Apartments.” Continue reading
Charlie Willner and Andrew Brown
Housing Vermont’s commitment to expanding services to our residents was underscored through the hiring of Andrew Brown as the program manager for HV Connections. Launched in January 2016, HV Connections works with property managers and our nonprofit partners at seven properties to build connections between area resources and our residents to address critical needs such as child care, food access, transportation and education. Continue reading
Ann Karlene Kroll and DHCD Staff
One of the highpoints of our annual meeting is the recognition of those who work hard to advance affordable housing and community development. This year Housing Vermont recognized a community development professional and town volunteers for their accomplishments.
Housing Vermont has submitted an application to the Treasury Department for $62 million in New Markets Tax Credits. If successful, it would add to previous NMTC awards totaling $140 million.
“Vermont Rural Ventures (VRV), our NMTC affiliate, has closed 16 projects producing $128.3 million in affordable capital to support $219.5 million in total development costs,” said HV President Nancy Owens. “It is too early to know how many applications Treasury will receive, but competition will be intense for this popular federal program,” she noted.
Eight financial institutions have committed a total of $14.1 million to Housing Vermont’s multi-investor housing equity fund.
“Despite the strong headwinds generated by the uncertainty of federal tax reform, we were able to close Green Mountain Housing Equity Fund 8 and have already begun to make equity commitments to new affordable housing developments.” said HV President Nancy Owens.
The first seven multi-investor funds raised $149.5 million which has helped to finance 59 properties with 1,690 apartments throughout the state.
The financial institutions which invest in the Green Mountain Housing Equity Fund receive a 10-year stream of federal tax credits though the Low Income Housing Tax Credit program and one-time tax credits through the federal historic rehabilitation program.
Four residents of Housing Vermont-affiliated properties will receive a total of $10,000 in scholarships to continue their education. One-year scholarships of $2,500 each were awarded to:
Chandra Groves, Burlington
Paige Palmer, Morrisville
Autumn Wheeler, Barre
Taylor Morrow, Essex Jct.
“Our work focuses on creating possibilities for Vermonters through developing affordable housing and financing economic development,” said Housing Vermont President Nancy Owens. “We appreciate that education also expands opportunities and are excited to be able to help these residents continue their education.”