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Committee hears request to codify rental housing revolving loan fund and broaden eligibility
Summary
VHFA told the committee that proposed technical language would tweak eligibility for the rental housing revolving loan fund to better pair it with 4% tax credits; presenters described the change as noncontroversial and asked the committee to include it in legislative vehicles.
The committee discussed draft statutory changes that would codify and slightly change eligibility for the rental housing revolving loan fund (RLF) so the fund can be paired more effectively with 4% federal tax credits for development.
Maura Collins, executive director of the Vermont Housing Finance Agency, said the language would tweak who is eligible for the RLF “to match the intention of the legislation” and allow greater use of 4% tax credits in support of mixed‑income communities. Collins told the committee the change was noncontroversial when presented at the Senate Housing Committee.
Committee members asked for clarification about which sections of the bill were implicated; the presenters said the provisions under discussion would codify the RLF, adjust technical financing language in sections 7(a) and 7(b) to protect revenue bonds and ensure those instruments are not inadvertently affected, and include reporting through VHFA’s annual report.
Panelists did not request an immediate vote and noted the language could be carried in multiple vehicles; one committee member observed that some of the sections are currently not in the House bill and thus would not be voted out at this meeting. No formal action was taken on the provisions during the session.
Why it matters: codifying eligibility and fixing technical financing language can change how VHFA pairs state financing with federal tax credits, which affects the financial feasibility and structure of rental housing projects. The tweaks are intended to make RLF dollars more deployable alongside existing tax credit programs.
The session concluded without a vote; presenters asked the committee to consider including the language in appropriate legislation and indicated they would provide additional technical clarifications as requested.
