Vermont Housing Finance Agency - Home | Vermont General...
Transcript of Vermont Housing Finance Agency - Home | Vermont General...
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Affordable homes for a sustainable Vermont.
Vermont Housing Finance AgencyMaura Collins, Executive Director [email protected] | 802.652.3434
Affordable homes for a sustainable Vermont.
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Affordable homes for a sustainable Vermont.
State Housing Tax Credits
Rental housing $400,000
First-time home buyer assistance$125,000
Owner homes & MH
replacements$300,000
Vermont Housing Tax Credit Annual Allocations
• State tax credit program funds:• Rental housing (launched 2000)
• Homeownership opportunities (added 2009)
• Manufactured home replacements (added 2013)
• Down payment assistance (added 2016)
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Affordable homes for a sustainable Vermont.
Example of how the credits work
Union Bank will reduce their state tax credit liability
by $125k in2017, 2018, 2019, 2020,
and 2021.
Total benefit: $625k
VHFA loaned out an average of $4,700 to approximately 130 renter households who used that assistance to become first time
homebuyers.
In summer of 2017, VHFA sold $125k of a
5-year state tax credit to Union Bank.
Union Bank paid VHFA approximately $600k in
exchange for the FY2018 state tax
credits.
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Affordable homes for a sustainable Vermont.
VHFA’s First Time Homebuyer Program
• 930 renters and in-migrants now own in Vermont!
• Median income: $60,000• Median home price:
$165,000• Borrowers received just
$4,700 in assistance• Average buyer is 31 years
old and has 2 people in their home
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Affordable homes for a sustainable Vermont.
Statewide benefits• Each buyer generates
$40,500 for the state via property taxes, spending on home improvements, renovations, furniture, and equipment.
• 789 employers have benefited. Top employers are healthcare, government, and schools.
• New homeowners in every county, 190 towns and counting…
Andrew, Julia and baby Leo Parise at their South Burlington home, purchased with a VHFA mortgage.
Photo by Danielle Landryew
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Affordable homes for a sustainable Vermont.
First time home buyer assistance by town
Source: www.housingdata.org/profile/housing-programs/dpa
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Affordable homes for a sustainable Vermont.
What can be done?
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Affordable homes for a sustainable Vermont.
Maintain first time home buyer program• Double amount of state tax credit for down payment assistance from $125,000 to
$250,000/year
• Extend the program until FY2026 so that it can be self-sustaining as designed
• Program began in FY2016 and will sunset in FY2022
• Original assumption:
• Enough loans will be paid back within 7 years to keep the program open
• Loan pay backs create revolving loan proceeds
• Current reality:
• Raising interest rates are slowing refinancings
• Pace of resales is low because when home values don’t rise beyond loan amount, owners stay put to avoid having to pay cash to sell.
• We’ve been funding 270 loans/year, but only half are state tax credit funded so repayments can’t keep up with current demand