Vermont Delegation
Announces $10.3 Million
In Recovery Funds To Create Jobs And Provide
Affordable Housing In Vermont
WASHINGTON (Friday, July 10) -- U.S. Senator Patrick
Leahy (D-Vt.), U.S. Senator Bernie Sanders (I-Vt.), and U.S.
Representative Peter Welch (D-Vt.) on Friday announced nearly $10.3
million in funding to the Vermont Housing Finance Agency (VHFA) to spur
development of affordable housing in Vermont.
The funding, made possible by the
American Recovery and Reinvestment Act (ARRA), will allow the VHFA to
provide sufficient equity funding to complete ongoing construction
projects in Windsor, Colchester and Montpelier. The ARRA investment will
help create 130 affordable housing units and an estimated 175 jobs by
leveraging over $20 million in construction funding.
VHFA will use the funding to
provide credit to the following projects:
-
Union Square, Windsor – This project includes 43
units of mixed-income housing and is expected to provide 76
construction jobs.
-
Brookside Village, Colchester – This project
includes 42 units of mixed-income housing and is expected to provide
76 construction jobs.
-
North Branch Apartments, Montpelier – This project
includes 45 units of mixed-income housing and is expected to provide
27 construction jobs.
The Treasury announced $486 million in funding to
affordable housing projects in 12 states, including Vermont, on Friday –
the fourth installment in a $3 billion ARRA program. The money comes as
the number of housing starts has fallen almost 80 percent since 2006 and
as the number of houses under construction has reached a 13-year low.
Sarah Carpenter, Executive Director of the VHFA said,
“Vermont has been very fortunate to have great support from our local
and regional banks and investors in providing tax credit equity for
affordable rental housing – but they can't do it all. With Fannie Mae
and Freddie Mac out of the national equity market, we desperately needed
an alternate investment option like the tax credit exchange program.
This will allow us to complete 130 units of affordable housing and
leverage over $20 million in construction funding.”
Sen. Leahy said, “As a result of the economic downturn
our state and nation are facing, many affordable housing developments in
progress or about to break ground would have faced disaster without
these recovery funds. The complicated tax incentives that have been
successfully used for years to help incentivize affordable housing
developments have fallen victim to the economic crisis. We
are pleased that these funds will help VHFA and other organizations
around the state complete much needed affordable housing and put people
to work.”
Sen. Sanders said, “Not only will this federal
investment begin to provide concrete solutions to the affordable housing
crisis in Vermont, it also will create decent-paying jobs. These
federal dollars demonstrate a commitment to increasing affordable
housing opportunities and putting Vermonters to work.”
Rep. Welch said, “This recovery funding will ensure
that critical construction projects in Vermont do not grind to a halt at
a time when we need them the most. By putting people to work while
creating much-needed affordable housing units, we are making just the
sort of investment Vermont communities need. I’m pleased these federal
dollars will be put to good use in Windsor, Colchester and Montpelier.”
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