Vermont awards $28 million for affordable housing

The Vermont Housing Finance Agency Board of Commissioners has awarded tax credits that will generate $28 million for developing 241 apartments, according to a community announcement.

The homes will serve low-income renters in seven communities across the state, according to the announcement.

Awards of federal Low Income Housing Tax Credits and state rental tax credits come as development costs and the demand for more affordable housing rise, according to the announcement. Since 2020, the cost to develop an affordable apartment and the number of Vermonters experiencing homelessness have both doubled, according to the announcement.

Competition for tax credits among developers is strong and the criteria for awards is rigorous, according to the announcement.

Three projects will receive $26 million for development costs.

• Highgate Village Housing in Highgate will create 30 apartments. Construction will begin in June 2027 with move-in starting in August 2028. The developer is Cathedral Square Corporation.
• Champlain Housing Trust and Evernorth are developing the Park Street Apartments in Winooski, which will have 24 units. The site is considered a brownfield and will be cleaned to state standards prior to construction. Occupancy is estimated for 2028.
• Twin Pines Housing Trust and Evernorth are developing the Sykes Mountain Apartments in White River Junction, which will have 48 units. Move-in is expected in December 2027.

Four additional development projects will receive an estimated $1.9 million from a state rental tax credit program for development costs.

• Cornerstone Housing Partners and Evernorth are working on the Arlington Village Center, which will have 30 apartments. The project involves the preservation and rehabilitation of 29 existing apartments and the construction of one new apartment across 11 buildings.
• RuralEdge and Evernorth are rehabilitating the Caledonia Renaissance Apartments in St. Johnsbury, which will have 18 units. The project will preserve 18 affordable apartments across five buildings.
• Cathedral Square Corporation and Evernorth are working on the Round Barn project in Grand Isle, which will have 24 units. The project involves the rehabilitation and construction of 24 apartments for aging people in two buildings.
• Jonathan Rose, Ride Your Bike and Champlain Housing Trust are developing the Ride Your Bike Building in Burlington, which will have 67 units. The project is part of a larger 240-plus housing development and is the first phase of a master plan for a currently underutilized parking lot.

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