Low-Income Housing Tax Credits & Private Activity Bonds in Vermont, 2017

In Vermont's 2017 Qualified Allocation Plan (QAP), projects using Private Activity Bonds with 4% credits are eligible for a basis boost.

In projects receiving credits “automatically” from the use of tax-exempt bond financing, a 30 year Housing Subsidy Covenant will be required. Both types of Covenants will require that the income and rent restrictions imposed by the Housing Credit Program will remain in effect for the initial 15 Year Compliance Period as described in the Covenant. Income and rent restrictions may be modified in accordance with the Year 15 Policy.

Projects using Bond Credits are eligible for Basis Boost if within a QCT or DDA. Additionally, certain projects designated by VHFA as requiring an increase in the credit amount to be financially feasible may be eligible for the Basis Boost.

Contributed By: 
National Housing Trust

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