Evernorth brief to committee explains low‑income housing tax credits, perpetual affordability and financing constraints

Kathy Byer, senior vice president for Evernorth, told the House Committee on General & Housing on Jan. 15 that federal low‑income housing tax credits, state soft funds and long‑term affordability covenants are the backbone of much affordable rental production in Vermont.

Byer described the basic financing mechanics of LIHTC and the role of syndication: a project receives a tax‑credit allocation from the Vermont Housing Finance Agency, forms a limited partnership, and sells those credits to investors (typically banks or corporate investors) to raise equity. That equity replaces debt in the capital stack, allowing lower rents that preserve affordability. "The low income housing tax credit program allows you to replace some of that debt with equity," Byer said.

Byer emphasized three related points. First, Vermont needs housing of many types, not just single‑family homes, to meet targets such as the…