Senate committee hears VHFA on budget adjustment, requests authority on rent cap waivers and notes $3M reversion

Montpelier — The Vermont Senate Appropriations Committee on Feb. 14 heard testimony from the Vermont Housing Finance Agency and housing program representatives about changes in the Budget Adjustment Act and several state housing funds, including a request that VHFA be allowed to approve rent increases above a 3% statutory cap in limited cases.

Gus Selig, a staff member who presented the housing board’s update, told the committee that “they added $8,600,000” to the budget adjustment and that the housing pipeline already exceeds available funds. "We expect, in the way of applications, $37,000,000 in requests," Selig said, and he told senators the agency expects more than $60,000,000 in requests next year while available housing dollars would be “in the low $20,000,000" if additional funds are allocated.

The context: VHFA and affiliated housing programs manage multiple state appropriations and loan programs that support new construction, preservation, shelter expansions and services for people with intellectual and developmental disabilities. The testimony outlined how limited state funding and rising costs are straining projects ready to close and the need for administrative…