VHFA Awards Tax Credits to Support 241 Affordable Housing Units

June 15, 2026 - 19:13

The Vermont Housing Finance Agency has set aside low-income housing tax credits to support the creation or preservation of 241 affordable housing units throughout the state. The funding will go toward seven separate projects, which will receive a combination of federal and state housing credits to help cover development expenses.

Officials said the credits are a critical tool for bridging the gap between construction costs and what low- and moderate-income renters can afford. The selected projects span multiple communities, aiming to address the state's ongoing shortage of affordable rental housing.

The tax credits work by allowing developers to sell them to investors, raising equity that reduces the amount of traditional debt needed. This structure helps keep rents lower for tenants. The VHFA evaluates projects based on factors like location, design, and the depth of affordability.

While the agency did not release a full breakdown of every project, it noted that the units will serve households earning at or below 60 percent of the area median income. Some developments will also include units for those with even lower incomes or special needs.

This round of awards is part of a broader effort to expand housing stock in Vermont, where vacancy rates remain tight and demand continues to outpace supply. The VHFA expects the new units to come online over the next two to three years, depending on construction timelines and permitting.