Loan programs

Construction and permanent loans

VHFA offers low interest construction and permanent mortgage financing for the development and preservation of affordable rental housing. Specific requirements regarding rent restrictions and qualifying household income may vary with the funding source. However, all developments must serve at least 51% low- and moderate-income households. Funds usually come from a number of sources including:

Proceeds from the sale of tax-exempt or taxable bonds
Federal Home Loan Bank non-member advances
Pension fund mortgage pools
VHFA reserves

Eligibility for multifamily financing programs

The housing sponsor must be organized on a limited profit or a nonprofit basis and approved by VHFA as qualified to own, construct, acquire, rehabilitate, operate, manage or maintain residential housing.

Eligible projects

Rental housing properties eligible for VHFA financing can include the following:

Conventional living units
Transitional housing
Congregate homes for the elderly
Mobile home parks
Single Room Occupancy (SRO) units
Special needs housing
Emergency shelters
Residential care facilities
Cooperative housing
Nursing homes

Standards

Appraisal Guidelines for Affordable Multifamily Housing Properties (112 KB; PDF)
Green Building and Design Standards (352 KB; PDF)

Monitoring

Important: VHFA multifamily permanent loans are subject to monitoring, insurance, budget, and audit requirements.

Application and fees

In 2007 VHFA, Vermont Housing and Conservation Board, and Vermont Community Development Program unveiled the new Common Application (below) for developers of multifamily and single family housing projects.

This application should be used for all projects and may be submitted to each organization.

Common application
Multifamily rental proforma (206 KB; XLS)
Permanent Record Form 803 (84 KB; PDF)
Rates and fees

Supplemental forms

Not necessarily required at time of application, VHFA underwriters will coordinate with applicants if and when these forms are required:

ENV-3 (88 KB; PDF); ENV-6 (124 KB; PDF)
To be completed when VHFA does HUD environmental reviews. For projects on which VHFA provides financing and HUD Risk Share mortgage insurance.
HUD 2530 (176 KB;PDF)
The HUD 2530 Previous Participation Certificate is required when VHFA provides financing with HUD Risk Share mortgage insurance. Sponsors should submit an unsigned draft initially so VHFA can get HUD feedback prior to securing the required signatures.
TEFRA form (102 KB; PDF)
For projects on which VHFA provides tax-exempt bond financing, the sponsor needs to compete this form so a required TEFRA notice can be published.

MacArthur preservation loans

VHFA is pleased to make funds available from the MacArthur Foundation. Read this introductory letter from Director of Development Joe Erdelyi (44 KB; PDF).