The Vermont Housing Finance Agency recently released a memo that outlines proposed changes to the state’s 2010-2011 Qualified Allocation Plan for the low-income housing tax credit program. In addition to various technical changes and corrections, a summary of the major changes is provided below. VHFA will hold a public hearing on the proposed changes on Wednesday, January 19 in Burlington.
- Recommends that the Green Building and Design Standards become a required threshold for all developments. To date, the standards have been optional and resulted in a 130% basis boost for fully complying. The proposed change would remove that basis adjustment.
- Proposes that developments located in certain high-density areas that are proximate to and/or are established outgrowths of designated urban centers be given the same weight in the threshold and evaluation criteria that compact village and urban centers are given.
- Recommends a new threshold criterion that all new tax credit developments be 100% smoke-free.
- Recommends removing the 130% basis boost for deeper mixed-income targeting (i.e. 20% market-rate); implement a 130% boost for projects that set aside 10% of all units for households that are homeless or at risk of becoming homeless.
