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Vermont Leads in Low Income Housing Tax Credit Program
(Category: Development. Added/edited: Dec 3, 2007.)
Vermont takes the lead in targeting Low Income Housing Tax Credit funds towards extremely low income households. A nationwide survey of state housing tax credit agencies undertaken by the National Council of State Housing Agencies (NCSHA) revealed that Vermont targets 48% of its LIHTC units towards extremely low income (ELI) households. The national average is 7% of LIHTC funded units targeted towards these ELI households, which have incomes at or below 30% of the area median income (AMI), or about $18,120/year in Vermont for a 4 person household (HUD Data). Households earning this income can afford $453/month for rent; where as the state’s fair market rent for a two bedroom is $836. LIHTCs can be used to make these units more affordable, and the maximum income for residents in an LIHTC unit is 60% of AMI.
Joseph Guggenheim authored an article in November’s Tax Credit Advisor, where he found that during 2005 more than 60% of LIHTC funded units were targeted to households at 50%-60% of AMI. While many states are seemingly targeting the maximum income limit of households for LIHTC credits, Vermont remains innovative and persistent in funding the poorest households. For the last 20 years, Vermont has had a strong state housing policy that emphasizes using public funds to benefit those with the lowest incomes. Another credit to Vermont is a delivery network of non-profits whose social mission is to provide affordable housing for low income and vulnerable Vermonters. The emphasis on preservation of existing subsidized housing stock, and the creation of permanently affordable units, has kept very low income residents in their homes and created new units every year, making Vermont a leader in the Low Income Housing Tax Credit Program
Guggenheim’s article: www.housingtaxcredits.net/id44.html.
Source: Danielle Rose, Vermont Affordable Housing Coalition
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