VHFA endorses extension and higher ceiling for down‑payment tax‑credit sales

Maura Collins, executive director of the Vermont Housing Finance Agency, told the Ways & Means committee she supported language in section 19 of the miscellaneous tax bill that would allow VHFA to continue selling five‑year down‑payment assistance tax credits and asked that drafters clarify the scope and years covered by the higher cap.

"Thank you for including section 19," Collins told the panel. She said the program has helped roughly 2,100 renters become homeowners and that repayments have supported further loans. Collins said the program currently had language that could be read to apply the higher $350,000 cap to earlier fiscal years and recommended adding a separate subsection making clear the higher ceiling would apply only to fiscal years 2027 through 2031.

Collins said repayments coming back to VHFA have declined as refinancing decreased with higher interest rates, and that VHFA’s request was intended to preserve lending capacity for the housing assistance program. She asked committee counsel and staff to work offline on precise drafting to avoid legal misunderstanding.

The committee thanked Collins and asked staff to follow up on language edits outside the hearing. No vote was taken on the provision Wednesday.