Vermont housing board: $377 million invested, nearly 5,000 homes preserved or created

The Vermont Housing & Conservation Board reported to the Senate Economic Development, Housing & General Affairs Committee on Jan. 21 that it has invested about $377,000,000 since 2020 to create or preserve nearly 5,000 homes, using state dollars to leverage federal and private financing and to secure permanent affordability.

The report matters because state investments that preserve long-term affordability reduce future displacement risk and can leverage larger sums of private equity and federal tax credits, the board told senators. Permanent affordability preserves housing built or purchased with public funds so future owners cannot flip units to market rate at the end of short-term affordability contracts.

Collie Majors, policy director at the Vermont Housing & Conservation Board, summarized the scale and strategy: "We've invested $377,000,000 to serve, when it's all built out, close to 5,000 households," Majors said, adding that the board focused its recent funding on rental housing, homeownership programs, mobile-home community work and repairs.

Majors and other board presenters highlighted examples of permanent-affordability transactions. They said Evernorth, a statewide housing developer, acquired Copley Terrace in Morrisville after a federal affordability contract expired, keeping 38 senior units permanently affordable and preventing displacement of tenants. The board also cited the preservation of Northgate Apartments and newer developments such as Cambrian Rise in Burlington, where a mix of market-rate and deeply affordable units coexist.

The board emphasized leverage: state investments often unlock private equity through the federal Low Income Housing Tax Credit (LIHTC) program. Majors said recent multifamily projects had a high average total development cost — about $550,000 per unit — but the typical state contribution was much smaller. "We're not cutting a $550,000 check. We're putting in more like $152,000 per unit, and that is leveraging other federal and private resources," Majors said.

The presentation also included a client perspective. A man identified as Steve, described by presenters as a resident who experienced homelessness and moved from a motel into permanent housing created by a VHCB partner, was quoted: "I've come a long way, believe me. Everything is good as long as I maintain my health. It's pretty incredible given that 6 years ago, they gave me only a 25% chance." The board said housing placements such as these reduce emergency shelter and health-care costs.

Board staff said they use permanent affordability requirements to protect tenants when federal subsidy terms expire, and noted that projects that preserve historic buildings can also bring in federal historic tax credits that increase a project's equity. Majors pointed to St. Johnsbury and other downtown renovations as examples in which preservation and housing goals aligned to leverage larger pools of capital.

The board said its portfolio serves a range of incomes — statutorily rental programs can serve households up to 100% of area median income (AMI) and homeownership programs up to 120% AMI — and that nonprofit partners serve BIPOC households at rates higher than the state population share.

The board concluded its overview saying the state investments both create and preserve homes and that maintaining permanent affordability is a long-term fiscal strategy because rebuilding or replacing affordable projects later would be far more expensive.

Looking ahead, presenters said pipeline and funding uncertainty have become immediate concerns for projects in development and for the state’s ability to keep leveraging federal programs.