Yet Another Complex Financial DealApril, 2011
It takes a lot to finance an affordable property the size of Northgate! In 2011, several state and federal partners came together to firm up a better financing structure. The Vermont Housing Finance Agency (VHFA) made a $13+ million loan — the largest in its history — which in turn financed a HUD loan and $5.2 million for improvements, including new roofs, boilers, kitchen and bathroom upgrades, and weatherization.
Policy details: NROC added New Northgate Housing LLC to the entity, remaining 99% nonprofit and becoming 1% for profit. The for-profit percentage allows Northgate to have an “Owner’s Reserve Fund” of $100,000 for projects outside of operating costs, including an annual scholarship and community gathering space. Champlain Housing Trust became a 1% owner at this time.Back to Timeline