Central Vermont Housing Incentives

Housing Incentives April 20, 2006 Changes

For Developers:

Housing Incentives April 20th Changes
Task Force Goal:
To compile existing, pending, and wish list of housing incentives.
To identify who knows about existing incentives and who doesn’t but should.For Developers:
1. Identify developable land
Commercial inventory exist –CVEDC & CV Chamber
Residential inventory informal thru realtors or town office.
Town & State has some land that could be reassessed and possibly “banked” for private use.
Encourage State to get inventory done of State “surplus” land that could be banked.
Tax Sales
Brownfields – possible mix use
Private land ownership
CV Land Trust & Local Land Trusts
VHCB – could requires future projects to set aside % for single starter homes.
2. VT Economic Progress Council (VEPC) tax credits; add housing as eligible projects
Low-income VHFA (mostly non-profits) private has weak link to these projects
Historic tax credit (rehab houses)
Tax Stabilization (business) – state & towns
Property tax differently depending upon whether developers are private or non-profits.
3. Access to grants/public funds; suggest a pilot project
4. Tax incentives/breaks/abatement/credits
5. Town share cost of infrastructure with developer rather than developer bearing all
How to improve and plan ahead for town sharing cost of infrastructure instead of
Town pitching in after fact due to problems.

6. Public/private partnerships to leverage additional funds
7. Tax increment financing districts for housing
Governor’s proposal for “New Neighbors” TIF (State Education Tax)
This is available for commercial, need to explore using for residential housing.
Downtown TIF for downtown district to develop upper floors as housing.
8. Density bonus through local zoning bylaws
Waterbury does cluster development.
PRD – Planned Residential Development allows for lot sizes to be different than zoned.
Barre recently changed zoning to accommodate more density than had been zoned.
Need Private-Public Partnerships
9. Cooperative housing/condominiums/mobile home parks
Need to develop community Consensus to create mix uses and mixed types of housing.
Housing Coop – generally non-profit residents own everything different than condo.
Shared house – owner (senior) & tenant (who provides some assistance owner)
Mplr host VT Home Share Program, which provides outside guidance to owner & tenant.
Developers Incentives continue:10. Rental housing - Need incentive to encourage rental housing.
Does anyone know of any that exist?
11. VEPC tax incentives for employers who provide housing assistance.
12. Need to develop ways to reduce RISK for private/for-profits.
13. VHCB should manage their funds directly, rather than distributing them to Home Centers.

For Employers:
1. Employer tax breaks for providing assistance to employees with housing/down payments, etc
Need more info from VHCB and CPA (Deb to ck).
2. Non-profit services arm of employer(s) through which non-profit funds can be used for
housing; Fannie Mae loans money. (Rob to contact Fannie Mae.)
3. Assist with employee housing savings accounts, dedicated accounts
- like 401k, federal & state rules.
4. Retirement Plan (employer match, employee pretax contribution) – 401K

For Employees:
1. Housing savings account; pre-tax
2. Individual development accounts (IDAs); available through CVCAC
(Community Action Council); currently in use; needs broader outreach.
3. Retirement Plan (employer match, employee pretax contribution)

For Homebuyers: (Changed number order of items at April 6th Mtg)
1. Direct subsidies for closing costs, down payments where needed, mortgage buy downs. VT Housing Conservation Board (VHCB) assistance; banks’ assist low/moderate income people; VT Housing Finance (VHFA) assistance; Fannie Mae; Veterans Admin. (VA);
Federal Housing Admin. (FHA); USDA-RD; HUD; and Montpelier Housing Trust Fund.
2. Energy efficiency incentives/benefits – Efficiency VT; VHFA
3. Encourage multiplexes owner occupied/renter/ middle income assistance
1-4 units qualify for subsidies listed in #1 above
Towns have to change zoning to allow.
State rules require towns to treat motor homes like single dwellings.
4. Funding for rehabilitation and maintenance – like Rebuilding Chittenden County
CVCLT - Scattered site housing grant to renovate, due when property sold.
Homebuyers Incentives continue:
5. Habitat for Humanity contributions/sweat equity – new build, donated labor.
6. Self Help Program/sweat equity – USDA has a Self Help Program
7. Incentives to downsize as population ages.
8. Tenant selection and oversight assistance – Home Share Program (mgr Mplr City)
9. HUD - rent voucher converted into a mortgage payment.
10. Need more info from VT Home Builders, Home Owner Centers (CVCLT)
11. CVCLT - Scattered site housing – Soft 2nd money to renovate – due when property sold

.For Landlords:
1. Assist with landlords’ rights, as well as tenants’ rights.
Apartment Association (landlords) - Stewart Bennett.
2. Life Safety Code issues/assistance – Fire Prevention (old Labor & Industry).
3. HUD website on landlords.
4. One or more Home Program (Mplr); VT Community Development Program
(Block Grants)
5. Accessory apartment conversion and assistance with managing.
All municipals have to allow in spite of current zoning.
6. Low interest loan for landlord to renovate existing apartment bldg /now in NEK not CV.
7. Provide technical assistance - USDA-RD & VT Community Block Grants.
Adds unite to market that would otherwise be taken off because cost of code upgrades.
8. Designated Downtown – Barre, Mplr, Pfd, Wtby – other towns?
This has state income tax incentive for landlords.

9. Neighbor Works of America – education for private landlords (Burlington has).
10. Local building code enforcement improves communications & can be pro-active.
Such as Barre City contracts with State to inspect for state codes.
Regular on-going inspections are important to maintain accurate profile of building,
and especially at time of sale for accurate condition and fair market value of building.

Visit Central Vermont Housing Collaborative www.weneedhousing.com

GRANTS and LOANS w/low or zero interest:
Please add/edit/change this list of available assistance.
Add needed information about eligibility.

1. Community Development Block Grant Program (CDBG)
– housing rehab/low moderate income qualified
2. United States Department of Agriculture (USDA)/Rural Development
– rehab assistance for low income
3. VT Housing Conservation Board (VHCB)
4. Banks
5. VT Housing Finance Agency (VHFA)
6. Fannie Mae
7. Corporations/foundations/housing grants; for instance, Home Depot, et al
8. VT Community Loan Fund (VCLF)
9. Vermont Community Foundation (VCF)
10. Efficiency VT-REEP – energy efficiency program assistance
11. Federal Home Bank/CLF
12. Municipal Resolving Loan Funds
13. Flexibility of State Grants to include for-profit businesses.
14. Low-interest or zero loan given as loans for tax purposes instead of as grants.
15. For-profits/private can apply for these loans and grants.
16. Request a Consolidated Application when financial package has several sources of money.
Would like the various federal and state entities to develop a single application process.
17. Private sector should have access to planning funds and technical assistance.
18. Foundations:
Orton Family Foundation;
Windum Foundation;
Housing Preservation Loan Program (Mplr)
Historical Tax Credit (20% private : federal & state –maybe state add on)
RITC – Rehabilitation Investment Tax Credit