With affordable housing properties in Vermont being developed for around $500 per square foot at taxpayer expense, the word “affordable” seems to have lost all meaning.
The House and Senate tax bills could be detrimental to an already struggling affordable housing situation in Vermont, according to estimates released by the Vermont Affordable Housing Coalition.
Affordable housing borrowers in Vermont aren’t being expected to pay back loans, but that arrangement raises questions about IRS definitions of a bona fide loan in low-income tax credit projects.
Responding to criticism that mortgage loans for Vermont’s affordable housing program will likely never be repaid, the head of the the Vermont Housing Finance Agency says the program doesn’t depend on repayment, and is nonetheless financially sound.
“The money is never going to be paid back — that’s the red flag.”
Gov. Phil Scott’s proposed $35 million bond for affordable housing seemed to have broad support only months ago, but now the proposal appears to be on life support.
Gov. Phil Scott on Friday announced a four-fold plan to strengthen the local economy by creating more housing in areas designated for growth and reinvestment.