For AI agents: read the machine-readable documentation index at /llms.txt or the single-file full reference at /llms-full.txt.
Form a Business

Powers and Duties

V.S.A. tit. 10, ch. 25, subch. 3
in effect

10 V.S.A. § 621 General powers and duties

621. General powers and duties The Agency shall have all of the powers necessary and convenient to carry out and effectuate the purposes and provisions of this chapter, including those general powers provided a business corporation by 11A V.S.A. § 3.02 and those general powers provided a nonprofit corporation by 11B V.S.A. § 3.02 and including, without limiting the generality of the foregoing, the power to: (1) make and execute contracts and all other instruments necessary or convenient for the exercise of its powers and functions under this chapter, including contracts and instruments that may be made and executed with the State or the United States or any agency or instrumentality of either of them or with private corporations or individuals, including contracts with mortgage lenders or other qualified entities for the servicing of mortgages made or acquired by the Agency pursuant to this chapter or for assistance rendered the Agency in the location of all eligible mortgagees or to pay the reasonable value of services rendered to the Agency pursuant to these contracts; (2) acquire real or personal property, or any interest therein, on either a temporary or long-term basis in its own name by gift, transfer, foreclosure, lease, pledge, assignment, or otherwise, including rights or easements in real property; hold, sell, assign, lease, encumber, mortgage, or otherwise dispose of any real or personal property or any interest therein; hold, sell, assign, or otherwise dispose of any mortgage lien interest owned by it or under its control, custody or in its possession; and release or relinquish any right, title, claim, lien, interest, easement, or demand however acquired, including any equity or right of redemption in property foreclosed by it and to do any of the foregoing by public or private sale, with or without public bidding, notwithstanding the provisions of any other law; (3) receive and accept grants, aid, or contributions, from any source, of money, property, labor, or other things of value, to be held, used, and applied or awarded to carry out the purposes of this chapter subject to the conditions upon which the grants, aid, and contributions may be made, including gifts or grants from any agency or instrumentality of the United States or of this State for payment of rent supplements to eligible persons or families or for the payment in whole or in part of the interest expense of residential housing or for any other purpose consistent with this chapter; (4) provide, contract, or arrange for consolidated processing of any aspect of the financing of residential housing under this chapter in order to avoid duplication thereof by either undertaking the processing in whole or in part on behalf of any department, agency, or instrumentality of the United States or of this State, or, in the alternative, to delegate or contract for the processing in whole or in part to any department, agency, or instrumentality of the United States or of this State, or to a private contractor acceptable to the Agency; (5) provide advice, technical information, assistance in obtaining federal and State aid, and make such grants, loans, or advances as will assist the planning, construction, rehabilitation, and operation of residential housing primarily for persons of low and moderate income, including assistance in community development and organization, advisory services, the formation of cooperative housing corporations and to encourage community organizations to assist in developing same; (6) conduct research and promote development in housing, building technology, and related fields; (7) stimulate environmental planning for housing for persons of low and moderate income in order to enhance opportunities of such persons for self-development and employment; (8) procure insurance against any loss in connection with its property and other assets, including mortgages and mortgage loans, in such amounts and from such insurers as it deems desirable; (9) subject to any agreement with bondholders or noteholders, invest monies of the Agency not required for immediate use, including proceeds from the sale of any bonds or notes, at the discretion of the Agency in the same manner as permitted for investment of funds belonging to the State or held in the Treasury; (10) include in any borrowing such amounts as may be deemed necessary by the Agency to pay financing charges, interest on its obligations for a period not exceeding one year from their date, consultant advisory and legal fees, and such other expenses as are necessary or incident to such borrowing; (11) subject to any agreement with bondholders or noteholders, purchase bonds or notes of the Agency out of any funds or money of the Agency available therefor, and to hold, cancel, or resell such bonds or notes; (12) make and publish rules and regulations respecting its housing programs and such other rules and regulations as are necessary to effectuate its corporate purposes; (13) borrow money and issue bonds and notes or other evidences of indebtedness thereof, issue mortgage credit certificates as hereinafter provided; (14) subject to any agreement with bondholders or noteholders, refinance any mortgage loan made by the Agency in accordance with this chapter and consent to any modification with respect to rate of interest, time and payment of any installment of principal or interest, security or any other term of any contract, mortgage, mortgage loan, mortgage loan commitment, contract, or agreement of any kind to which the Agency is a party, and refinance any loan made by others if the Agency finds that such refinancing will maintain or increase the supply of residential housing in the State for persons and families of low and moderate income; (15) procure or agree to the procurement of insurance or guarantees from the federal government of the payment of any bonds or notes or any other evidences of indebtedness thereof issued by the Agency including the power to pay premiums on any such insurance; (16) purchase and enter into commitments to purchase eligible securities from mortgage lenders provided the proceeds of such purchase are reinvested by such mortgage lenders in new mortgage loans on residential housing for occupancy by persons and families of low and moderate income; (17) do any and all things necessary or convenient to effectuate the purposes and provisions of this chapter and to carry out its purposes and exercise the powers given and granted in this chapter; (18) make grants and loans or advances for predevelopment activities related to the development of residential housing; (19) make loans or advances secured by a mortgage to housing sponsors for the acquisition, construction, rehabilitation, operation, or maintenance of residential housing; (20) make loans to members of a housing cooperative corporation to finance their cooperative interests in such housing cooperative corporation and make mortgage loans and loans to persons or families to finance mobile homes; (21) use funds received from real estate trust and escrow accounts established under 26 V.S.A. § 2214(c), IORTA funds, for down payment and closing cost assistance with priority given to persons and families at or below 90 percent of median income and to persons and families purchasing perpetually affordable housing; (22) issue bonds, notes, and other obligations secured by the property transfer tax revenues transferred to the Agency pursuant to 32 V.S.A. § 9610(d); and (23) develop a program to finance and promote housing weatherization using funds appropriated by the State, funds generated through issuing bonds, notes and other obligations of the Agency, and funds from other sources obtained through grants or other arrangements, giving priority to programs benefiting persons and families at or below 120 percent of median income with high energy burdens and to programs to expand the pool of qualified weatherization contractors in the State. Added 1973, No. 260 (Adj. Sess.), § 3, eff. April 11, 1974; amended 1975, No. 176 (Adj. Sess.), § 4, eff. March 26, 1976; 1987, No. 8, § 1, eff. April 14, 1987; 1987, No. 41, § 2; 1987, No. 250 (Adj. Sess.), § 2, eff. June 13, 1988; 1989, No. 77, § 3, eff. June 7, 1989; 1991, No. 86, § 2, eff. Jan. 1, 1992; 2005, No. 189 (Adj. Sess.), § 2; 2017, No. 85, § I.5; 2017, No. 85, § I.11; 2021, No. 74, § E.802.

10 V.S.A. § 622 Powers relative to purchase of and sale to mortgage lenders of mortgage loans; loans through mortgage lenders

622. Powers relative to purchase of and sale to mortgage lenders of mortgage loans; loans through mortgage lenders The Agency shall have the following powers in addition to others granted in this chapter: (1) To invest in, purchase or make commitments to purchase, and take assignments from mortgage lenders, of notes and mortgages evidencing mortgage loans for the purchase or refinancing of residential housing, whether or not for occupancy by persons and families of low and moderate income in this State upon the terms set forth in section 623 of this title. (2) To make loans to mortgage lenders under terms and conditions set forth in section 623 of this title. (3) To make commitments to purchase, and to purchase, service, and sell mortgage loans and to make loans directly upon the security of any such mortgage, provided the underlying mortgage loans shall have been made and shall be continued to be used solely to finance or refinance the construction, rehabilitation, purchase, or leasing of residential housing in this State. (4) To sell, at public or private sale, with or without public bidding, any mortgage or other obligation held by the Agency. (5) Subject to any agreement with bondholders or noteholders, to collect, enforce the collection of, and foreclose on any collateral securing its loans to mortgage lenders and acquire or take possession of such collateral and sell the same at public or private sale, with or without public bidding, and otherwise deal with such collateral as may be necessary to protect the interest of the Agency therein. (6) Renegotiate, refinance, or foreclose or sell, or contract for the foreclosure of or sale of, any mortgage in default; waive any default or consent to the modification of the terms of any mortgage; commence any action to protect or enforce any right conferred upon it by any law, mortgage, contract or other agreement, and bid for and purchase such property at any foreclosure or at any other sale, or acquire or take possession of any such property; operate, manage, lease, dispose of, and otherwise deal with such property, in such manner as may be necessary to protect the interests of the Agency and the holders of its bonds, notes or other obligations. (7) To purchase, make, or otherwise participate in the making, to enter into commitments, for the purchase, making, or participation in the making, of eligible loans for rehabilitation to persons and families of low and moderate income, and to owners of existing residential housing for occupancy by those persons and families, for the rehabilitation of existing residential housing owned by them. The loans may be insured or uninsured and shall be made with such security as the Agency considers advisable. They may be made in amounts sufficient to refinance existing indebtedness secured by the property, if the refinancing is determined by the Agency to be necessary to permit the owner to meet his or her housing costs without expending an unreasonable portion of his or her income on it. A loan for rehabilitation shall not be made unless the Agency determines that the loan is to be used primarily to make the housing more desirable to live in, to increase the market value of the housing, to comply with building, housing maintenance, fire, health, or similar codes and standards applicable to housing, to accomplish energy conservation related improvements, or to ensure independent living for elders or persons who have a disability. Added 1973, No. 260 (Adj. Sess.), § 3, eff. April 11, 1974; amended 1977, No. 59, § 1, eff. April 23, 1977; 1987, No. 41, § 3; 2005, No. 189 (Adj. Sess.), § 3; 2013, No. 96 (Adj. Sess.), § 35.

10 V.S.A. § 623 Terms and conditions of the purchase and sale to mortgage lenders of mortgage loans; loans through mortgage lenders

623. Terms and conditions of the purchase and sale to mortgage lenders of mortgage loans; loans through mortgage lenders (a) No mortgage or other obligation purchased from a mortgage lender shall be eligible for purchase or commitment to purchase by the Agency hereunder unless at or before the time of transfer thereof to the Agency such mortgage lender certifies: (1) That in its judgment the loan would in respect of the security therefor be a prudent investment for its own account; (2) That the proceeds of sale or its equivalent shall be reinvested in new mortgage loans on residential housing for occupancy by persons and families primarily of low and moderate income within the State, or in loans for the rehabilitation of such residential housing, which rehabilitation loans need not be secured by a first mortgage lien, or invested in short-term obligations pending the purchase of those mortgages, or that the mortgage loans purchased or to be purchased by the Agency are new mortgage loans on residential housing for occupancy by persons and families primarily of low and moderate income within the State. However, each such new mortgage loan shall have been initiated for the purpose of sale to the Agency; and (3) That mortgage loans or rehabilitation loans made by mortgage lenders from the proceeds of sale of mortgages to the Agency shall bear a rate or rates of interest less than the prevailing rate of interest on comparable mortgage loans or rehabilitation loans available in the State without the assistance of the Agency, except when such proceeds arise from the sale to the Agency of new mortgage loans on residential housing for occupancy by persons and families primarily of low and moderate income within the State. (b) The Agency shall purchase mortgage loans at a purchase price equal to the outstanding principal balance thereof. However, a discount from the principal balance or the payment of a premium may be employed to effect a fair rate of return, as determined by the rate of return on comparable investments under market conditions existing at the time of purchase. In addition to the payment of outstanding principal balance, the Agency shall pay the accrued interest due thereon, on the date the loan or obligation is delivered against payment therefor. (c) Loans purchased or sold hereunder shall consist of federally insured mortgage loans or loans that are insured, guaranteed, or assisted by the State or by an agency or instrumentality thereof or for which there is a commitment by the United States or the State or an agency or instrumentality thereof to insure, guarantee, or assist such loan, and other mortgage loans that the Agency deems to be of reasonably comparable security. (d) The Agency shall from time to time adopt, modify, or repeal rules and regulations governing the making of loans to mortgage lenders and the purchase and sale of mortgage loans and the application of the proceeds thereof, including rules and regulations as to any or all of the following: (1) procedures for the submission of requests or the invitation of proposals for the purchase and sale of mortgage loans or for loans to mortgage lenders; (2) limitations or restrictions as to location or other qualifications or characteristics of residences to be financed from the proceeds of such purchase or loans; (3) restrictions as to the interest rates on loans made from the proceeds of purchase of mortgage loans or from loans to mortgage lenders or the return realized therefrom by mortgage lenders; (4) requirements as to commitments by mortgage lenders with respect to the application of the proceeds of such purchase or loan; (5) schedules of any fees and charges necessary to provide for expenses and reserves of the Agency; (6) requirements and specifications as to recourse; and (7) any other matters related to the duties and the exercise of the powers of the Agency under this section. (e) The rules and regulations shall be designed to effectuate the general purposes of this chapter and the following specific objectives: (1) the expansion of the supply of funds in the State available for mortgage loans for residential housing generally and particularly for occupancy by persons and families of low and moderate income; (2) provision for additional housing or rehabilitated housing needed to remedy the shortage of adequate housing in the State and to eliminate the existence of a large number of substandard dwellings; and (3) the restriction of the financial return and benefit on mortgage loans for residential housing for persons and families of low and moderate income to that level necessary to protect against the realization of mortgage lenders of a financial return or benefit in excess of prevailing market conditions; (4) in the case of mortgage loans secured by cooperative interest in cooperative housing corporations, to ensure that the purchase of such mortgage loans with the proceeds of bonds of the Agency will not, without the consent of the Agency, cause such bonds to be “other than qualified mortgage bonds.” (f) The interest rates and other terms of loans to mortgage lenders made from the proceeds of any issue of bonds of the Agency shall be at least sufficient so as to ensure the payment, from the amounts received by the Agency in repayment of the loans and interest thereon, of the bonds and the interest thereon as the same become due, including bonds and the interest thereon issued by the Agency to fund reserves. (g) The Agency shall require as a condition of each loan to a mortgage lender: (1) that the mortgage lender shall on or prior to the 180th day, or such earlier day as shall be prescribed by rules and regulations of the Agency, following the receipt of the loan proceeds, have entered into written commitments to make, and shall thereafter proceed as promptly as practicable to make and disburse from the loan proceeds, mortgage loans on residential housing primarily for occupancy by persons and families of low and moderate income in an aggregate principal amount equal to the amount of the loan less any fees and expenses of the mortgage lender approved by the Agency or loans for the rehabilitation of such residential housing, which rehabilitation loans need not be secured by a first mortgage lien; and (2) that mortgage loans or rehabilitation loans made by mortgage lenders with the proceeds of a loan to such mortgage lender shall bear a rate or rates of interest less than the prevailing rate of interest on comparable mortgage loans or rehabilitation loans available in the State without the assistance of the Agency. (h) The Agency may require that the loans to mortgage lenders shall be additionally secured as to payment of both principal and interest by a pledge of and lien upon collateral security in such amounts as the Agency shall by resolution determine to be necessary to ensure the payment of the loans and the interest thereon as they become due. The collateral security shall consist of: (1) direct obligations of, or obligations guaranteed by the United States of America; (2) obligations, satisfactory to the Agency, issued by any of the following federal agencies: Bank for Cooperatives, Federal Intermediate Credit Bank, Federal Home Loan Bank System, Federal Land Banks, the Government National Mortgage Association; Federal National Mortgage Association; or Federal Home Loan Mortgage Corporation; (3) direct obligations of or obligations guaranteed by the State; or (4) mortgages insured or guaranteed as to payment of principal and interest by the United States of America or an agency or instrumentality thereof or by the State or an agency or instrumentality thereof; (5) mortgages that the Agency deems to be of reasonably comparable security. Added 1973, No. 260 (Adj. Sess.), § 3, eff. April 11, 1974; amended 1975, No. 14, § 1, eff. March 17, 1975; 1983, No. 52, § 2, eff. April 23, 1983; 1987, No. 41, § 4; 2005, No. 189 (Adj. Sess.), § 4.

10 V.S.A. § 624 Making of loans to housing sponsors

624. Making of loans to housing sponsors (a) The Agency may: (1) Make, undertake commitments to make, purchase, undertake commitments to purchase, and participate with mortgage lenders in the making of mortgage loans, and to make grants, loans, and advances to housing sponsors to finance the acquisition, construction, or rehabilitation of residential housing, provided, that this subdivision shall not be construed to include equity loans. (2) Institute any action or proceeding against any housing sponsor receiving a loan under the provisions of this chapter, or owning any residential housing under this chapter in any court of competent jurisdiction in order to enforce the provisions of this chapter or the terms and provisions of any agreement or contract between the Agency and the recipients of loans under the provisions of this chapter, or to foreclose its mortgage, or to protect the public interest, the occupants of the residential housing, or the stockholders or creditors, if any, of the housing sponsors. In connection with any such action or proceeding it may apply for the appointment of a receiver to take over, manage, operate, and maintain the affairs of the housing sponsor and the Agency, through such agent as it designates, may accept the appointment of the receiver of any housing sponsor when so appointed by a court of competent jurisdiction. In the event of the reorganization of any housing sponsor, to the extent possible under the provisions of law, the reorganization shall be subject to the supervision and control of the Agency and no reorganization may be accomplished without the prior written consent of the Agency. In the event of a judgment against any housing sponsor in any action not pertaining to the foreclosure of a mortgage, there may be no sale of any of the real property included in any residential housing of that housing sponsor except upon 60 days written notice to the Agency. Upon receipt of the notice the Agency shall take such steps as in its judgment may be necessary to protect the rights of all parties. (3) Make, undertake commitments to make, purchase, undertake commitments to purchase, and participate with mortgage lenders in the making of equity loans. (b) The Agency shall provide by rules or regulations for the terms and conditions of mortgage loans to housing sponsors of residential housing. Mortgage loans made by the Agency to housing sponsors, in addition to such other terms and conditions as the Agency may by rule or regulation provide, shall be subject to the following: (1) No application for a mortgage loan may be approved unless the applicant is a housing sponsor as defined in section 601 of this title; (2) The mortgage loan may be in an amount not to exceed the value of the residential housing as determined by the Agency. The value determined may include the value of additional collateral as deemed appropriate by the Agency; (3) The mortgage loan shall be secured in such manner and be repaid in such period, not exceeding 40 years, as may be determined by the Agency and shall bear interest at a rate determined by the Agency. The interest rates shall be established by the Agency at the lowest level consistent with the Agency’s cost of operation and its responsibilities to the holders of its bonds, bond anticipation notes, and other obligations. In addition to such interest charges, the Agency may make and collect such fees and charges, including reimbursement of the Agency’s operating expenses, financing costs, service charges, insurance premiums, and mortgage insurance premiums, as the Agency determines to be reasonable; (4) Each mortgage and promissory note accompanying the mortgage shall contain such terms and provisions and be in such form as approved by the Agency; (5) Each mortgage loan to a housing sponsor for residential housing shall be subject to an agreement between the agency and the housing sponsor which will subject the housing sponsor and its principals or stockholders, if any, to limitations established by the agency as to sale prices, rental, and other charges, builder’s and developer’s profits and fees, and the disposition of its property and franchise to the extent more restrictive limitations are not provided by the law under which the housing sponsor is incorporated or organized or by this chapter; and (6) The Agency shall have the power at all times during the construction or rehabilitation of residential housing and its operation: (A) to enter upon and inspect any residential housing including all parts thereof, for the purpose of investigating the physical and financial condition thereof, and its construction, rehabilitation, operation, management, and maintenance, and to examine all books and records of the housing sponsor with respect to capitalization, income, and other matters relating thereto and to make those charges as may be required to cover the cost of the inspections and examinations; (B) to order such alterations, changes, or repairs as may be necessary to protect the security of its investment in residential housing or the health, safety, and welfare of the occupants or its users and to ensure that the residential housing is or has been constructed or rehabilitated in conformity with all applicable plans and specifications and building codes; and (C) to order any managing agent or sponsor of residential housing to do those acts as may be necessary to comply with the provisions of all applicable laws, ordinances, or building codes or any rule or regulation of the Agency or the terms of any agreement concerning the residential housing or to refrain from doing any acts in violation of it, and in this regard the Agency shall be a proper party to file a complaint and to prosecute thereon for any violations of law, ordinances or building codes as set forth in this chapter. (c) [Repealed.] Added 1975, No. 176 (Adj. Sess.), § 5, eff. March 26, 1976; amended 1977, No. 47, § 2, eff. April 20, 1977; 1977, No. 199 (Adj. Sess.), § 1; 1987, No. 41, § 5; 1989, No. 77, § 4, eff. June 7, 1989; 2005, No. 189 (Adj. Sess.), §§ 5, 6.

10 V.S.A. § 625 Procedure prior to financing of multi-family housing undertaken by housing sponsors

625. Procedure prior to financing of multi-family housing undertaken by housing sponsors The Agency may not finance any residential housing undertaken by a housing sponsor under subdivision 624(a)(1) of this title unless: (1) the residential housing is primarily for occupancy by persons and families of low and moderate income, or qualifies for financing with proceeds of federally tax-exempt obligations, or at least 20 percent of the units are for occupancy by persons and families of low and moderate income; (2) the Agency determines that the acquisition, construction, or rehabilitation costs incurred or to be incurred by the housing sponsor under agreement are for housing development costs within the meaning of this chapter; (3) the Agency determines that there exists, or without the proposed residential housing there will exist, a shortage of decent, safe, and sanitary housing at rentals or prices that persons and families of low or moderate income are able to afford within the general housing market area or there is a shortage of temporary transitional or emergency housing to be served by the proposed residential housing; and (4) the Agency determines that the housing sponsor or sponsors undertaking the proposed housing development will maintain or increase the supply of well-planned, well-designed permanent, temporary, transitional, or emergency housing for persons or families of low and moderate income and that the sponsors are financially responsible persons or institutions. Added 1975, No. 176 (Adj. Sess.), § 6, eff. March 26, 1976; amended 1987, No. 41, § 6; 1989, No. 77, § 5, eff. June 7, 1989; 2005, No. 189 (Adj. Sess.), §§ 7, 8; 2007, No. 176 (Adj. Sess.), § 11, eff. July 1, 2008.

10 V.S.A. § 626 Rules; insulation of structures

626. Rules; insulation of structures (a) The Agency may adopt rules, but they shall be under 3 V.S.A. chapter 25, providing standards for the insulation, design, and equipping of buildings to minimize, insofar as is practicable and economical, the transfer of heat or cold between the interior and exterior of the building. The rules shall: (1) be consistent with standard practices and techniques in the construction industry; and (2) be, insofar as is practicable, consistent with nationally recognized building codes and regulations adopted under the authority of Congress; and (3) not require the installation of devices, equipment, or materials that would substantially alter the basic architecture of an existing building. (b) The Agency shall publish a manual that shall be made available, at cost, to any person upon his or her request. The manual shall show by diagram and otherwise various acceptable methods, materials, and devices that may be used by the owners of buildings and others to comply with the standards adopted by rule under subsection (a) of this section. Added 1977, No. 59, § 2, eff. April 23, 1977.

10 V.S.A. § 627 Mortgage purchases

627. Mortgage purchases (a) In addition to other powers granted in this chapter, the Agency shall have the power to participate with mortgage lenders in a program whereby mortgage loans, rehabilitation loans, and eligible securities are purchased from mortgage lenders by the Agency or by others. Before participating in any such program, the Agency shall determine that its participation will tend to expand the supply of funds in the State available for mortgage loans for residential housing generally and particularly for occupancy by persons and families of low and moderate income. The Agency may enter into contracts or other instruments for the administration and implementation of such programs. The Agency shall adopt rules and regulations in respect of such program as provided in subsections 623 (d), and (e) but such program shall not otherwise be subject to the requirements of sections 622 and 623. If the purchaser of such loans and securities pursuant to this section is the Agency or a trust established under subsection (c) of this section, such purchase may be financed through the issue of bonds, notes, or other obligations by the Agency under subsection (b) of this section or through the issue of eligible securities by the Agency or a trust under subsections (c), (d), and (e) of this section. Such purchase may be refinanced by any of such methods whether previously financed or refinanced under any of such methods or otherwise. If the purchaser of such loans and securities pursuant to this section is not the Agency or such a trust, or if a purchase by the Agency or trust is for purposes of resale to others and does not involve the issue of bonds, notes, or other obligations or eligible securities by the Agency or trust, the Agency and trust shall each have power: (1) to cooperate with such other purchasers, with mortgage lenders, and with others; (2) to provide and agree to provide services in pooling and servicing such loans and securities; (3) to agree to bear risk of loss subject to such limitations as the Agency may prescribe; and (4) to do anything necessary or appropriate to participate in programs of other government agencies, the Federal National Mortgage Association, the Federal Home Loan Mortgage Corporation, their successors, or other financial institutions or intermediaries involved in the residential mortgage market that are not inconsistent with the purposes of this chapter. (b) Bonds, notes, and other obligations issued by the Agency pursuant to this section shall not be general obligations of the Agency, shall not be secured in whole or in part by a debt service reserve fund to which State funds may be appropriated pursuant to subsection 632a(f) of this title, shall not be subject to subdivision 631(b)(1) of this title, and shall not be taken into account for purposes of the limitation on indebtedness of the Agency contained in the last sentence of subdivision 631(a)(1). Such bonds, notes, and other obligations shall be payable solely from the receipts, revenues, or other income derived in respect of loans and securities purchased pursuant to this section or from the proceeds of such bonds, notes, and other obligations, or from receipts, revenues, or other income derived in respect of such proceeds or reserves established therefrom. Any official statement or other prospectus used by the Agency in offering such obligations for sale shall clearly indicate that such obligations are not the debt or obligation of the State or of the Agency except to the extent provided in this section. (c) Eligible securities issued pursuant to this section may be issued by the Agency itself. The Agency, by indenture or otherwise, may also establish a trust as the issuer of eligible securities under this section. The Agency may but need not be trustee of such a trust. Such a trust shall be established in such manner and subject to such provisions as the Agency deems necessary or appropriate to carry out the purposes of this section. A trust so established shall be a public instrumentality of the State acting on behalf of the State to the same extent as the Agency itself. (d)(1) In issuing eligible securities pursuant to this section, the Agency and any trust established by it shall have, in addition to its other powers under this chapter or general law, all the powers the Agency has in issuing bonds, notes, and other obligations pursuant to subsection (b) of this section, subject to the special provisions of subsection (b) of this section, including the following powers: (A) to authorize such securities, to issue them as negotiable investment securities, to execute them through appropriate present or former officers, and to sell them at public or private sale; (B) to make agreements and contracts with, and valid and effective pledges of property to, securities holders by resolution or otherwise; (C) to issue taxable securities, cause them to be registered, and grant appropriate indemnification; (D) to purchase and deal in such securities; (E) to secure such securities by appropriate trust instruments and agree that its contracts with securities holders will not be impaired by the State; and (F) to use and invest proceeds of securities and refunding securities. (2) The Agency’s exercise of the powers set forth in subdivision (1) of this subsection shall be in the manner more fully provided in this chapter for bonds, notes, and other obligations, or in a manner the Agency determines is reasonably comparable thereto taking into account the different characteristics of eligible securities, or of the issuer thereof, and other matters the Agency considers necessary or appropriate to effectively issue such securities. (e) Without limiting the generality of subsection (d) of this section: (1) eligible securities issued by the Agency or a public instrumentality pursuant to this section shall be legal investments to the same extent as bonds and notes issued under this chapter; (2) the holders of such securities shall be entitled to the same remedies, so far as apt, as are provided to holders of bonds and notes under section 635 of this title; and (3) if such securities evidence the issuer’s interest in mortgages otherwise than by the issuer’s promise to pay principal and interest in fixed amounts and at stated times, they shall not be subject to the provisions of this chapter governing amounts and times of payment of principal and interest on bonds, notes, and other obligations, and no finding under subdivision 631(b)(2) of this title as to sufficiency of receipts, revenues, or other income to pay such securities shall be required with respect to them. Added 1981, No. 23, § 2, eff. April 14, 1981; amended 1983, No. 52, § 3, eff. April 23, 1983; 2019, No. 14, § 14, eff. April 30, 2019.

10 V.S.A. § 628 Mortgage credit certificates

628. Mortgage credit certificates In addition to other powers granted in this chapter, the Agency shall have the power to establish a qualified mortgage credit certificate program and to issue mortgage credit certificates as provided in this section. The terms “qualified mortgage credit certificate program” and “mortgage credit certificate” shall have the meaning prescribed in Section 25 of the Internal Revenue Code, as amended. Before establishing a qualified mortgage credit certificate program, the Agency shall determine that to do so will effectuate the purposes of this chapter. In carrying out such a program, the Agency shall have the power to take all appropriate actions for such purpose, including formulating and implementing administration procedures, making all necessary reports and filings, and electing not to issue bonds or notes otherwise authorized by this chapter. In lieu of the requirements of this chapter applicable to the purchase and sale by the Agency of mortgage loans and rehabilitation loans, any qualified mortgage certificate program established by the Agency shall comply with and be subject to the provisions of Section 25 of the Internal Revenue Code, as amended, and regulations thereunder as in effect from time to time. Any rule, regulation, practice, policy, or procedure adopted by the Agency for the purpose of implementing or administering a mortgage credit certificate program shall not be subject to the requirements of 3 V.S.A. chapter 25. Added 1987, No. 8, § 2, eff. April 14, 1987.

10 V.S.A. § 629 Rental Housing Revolving Loan Program

629. Rental Housing Revolving Loan Program (a) Creation; administration. The Vermont Housing Finance Agency shall design and implement a Rental Housing Revolving Loan Program and shall create and administer a revolving loan fund to provide subsidized loans for rental housing developments that serve middle-income households. (b) Loans; eligibility; criteria. (1) The Agency shall adopt processes, procedures, and guidelines to implement the Program consistent with this section, including a simple application process that is accessible to small developers, builders, and contractors. (2)(A) To be eligible for a subsidized loan through the Program, a project shall create two or more new rental housing units, which may include market rate and affordable units, provided that at least 25 percent of the units in the project are affordable to a household earning up to 150 percent of the applicable area median income. (B) Projects may include new construction, acquisition with substantial rehabilitation, and preservation of naturally occurring affordable housing. (3) A loan is available only for the costs of the project allocable to the affordable units. (4)(A) The Agency shall calculate the maximum amount of a loan, which shall not exceed the lesser of: (i) 35 percent of the costs of the project allocable to the affordable units; or (ii) the following amounts based on area median income bands: (I) $150,000.00 per unit for each unit that is affordable to a household earning up to 80 percent of area median income; and (II) $100,000.00 per unit for each unit that is affordable to a household earning from 81 to 150 percent of area median income. (B) The Agency shall adopt and implement a method to adjust the values specified in subdivision (A)(ii) of this subdivision (4) at least annually for inflation and may adopt a smoothing mechanism to adjust the maximum loan values within each band based on levels of affordability. (5) The Agency shall determine the term and interest rate of a loan. The Agency may adopt one or more mechanisms to provide an enhanced subsidy to incentivize projects, including: (A) a lower interest rate; (B) an interest-only option with deferred principal repayment; and (C) partial loan forgiveness. (6) The Agency shall adopt a Program plan that allows for an enhanced subsidy for a project that meets one or more of the following criteria: (A) The project receives five percent or more of the total funding from an employer or employer-capitalized loan or grant. (B) The project receives five percent or more of the total funding from a municipal or regional housing fund, local fiscal recovery fund, or other form of community investment. (C) The project utilizes tax-exempt bond funding or federal low-income housing tax credits for at least 20 percent of the project’s total units. (D) The project is small in scale and provides infill development within a historic settlement pattern. (7) The Agency shall use one or more legal mechanisms to ensure that: (A) a subsidized unit remains affordable to a household earning the applicable percent of area median income for the longer of: (i) seven years; or (ii) full repayment of the loan plus three years; and (B) during the affordability period determined pursuant to subdivision (A) of this subdivision (7), the annual increase in rent for a subsidized unit does not exceed three percent or an amount otherwise authorized by the Agency. (c) Program design. (1) When designing and implementing the Program, the Agency shall consult stakeholders and experts in the field. (2) The Program shall include: (A) a streamlined and appropriately scaled application process; (B) an outreach and education plan, including specific tactics to reach and support eligible applicants, especially those from underserved regions or sectors; and (C) an equitable system for distributing investment statewide on the basis of need according to a system of priorities that includes consideration of: (i) geographic distribution; (ii) community size; (iii) community economic need; and (iv) whether an application has already received an investment or is from an applicant in a community that has already received Program funding. (3) The Agency shall use its best efforts to ensure that: (A) investments are targeted to the geographic communities or regions with the most pressing economic and employment needs; and (B) the allocation of investments provides equitable access to the benefits to all eligible geographical areas. (d) Revolving funds. The Agency shall retain payments of principal, interest, and any fees in a revolving loan fund, the amounts of which it shall use to issue future loans through the Program. (e) Annual report. The Agency shall include information on the status of the Program as part of the annual report required by section 639 of this title. Added 2025, No. 179 (Adj. Sess.), § 5b, eff. July 1, 2026.
Source: Vermont General Assembly (legislature.vermont.gov)URL: https://legislature.vermont.gov/statutes/chapter/10/025Fetched: 10/21/2026

Starting a business in Vermont? Vermont LLC guide: costs and requirements