People’s United Bank Invests $15 Million with Housing Vermont

People’s United Bank Invests $15 Million with Housing Vermont

− Investment will provide capital to create affordable housing −

Today the People’s United Bank announced that it was investing $15 million with Housing Vermont to create affordable apartments in several areas of the state.

“People’s United Bank has a long-standing and successful relationship with Housing Vermont, and we are pleased to provide this major commitment of low-income housing equity in support of affordable housing in Vermont,” said Art Casavant, Vice President and Community Reinvestment Officer for People’s United. “The Bank is focused on economic development, support for low- and moderate- income communities and the well-being of the communities where we do business. This important extension of capital will allow us meet community needs and support an important partner,” Casavant said.

The People’s United investment will create a pool of funds to provide equity financing for multiple affordable rental housing projects to be developed by Housing Vermont and its community partners. Federal affordable housing tax credits earned from these investments will be used to offset the Bank’s federal tax liability.

“Our commitment to community development and the Community Reinvestment Act begins with our Board of Directors and is supported by our Chief Executive, Jack Barnes, our Vermont President Michael Seaver and our bankwide community development program. We are pleased to work with Housing Vermont, the state of Vermont, and our local partners to improve economic well-being,” Casavant said.

People’s United has been one of the largest investors in Housing Vermont, a nonprofit housing developer and tax credit syndicator, with total investments of $83 million since Housing Vermont was created in 1988. These investments have been used to finance the creation of 3,020 affordable apartments in more than 115 properties throughout Vermont.

“People’s United is a highly valued partner in our work,” said Housing Vermont President Nancy Owens. “The investment of $15 million now is especially critical. It means that we can continue to meet the needs of our growing development pipeline of community housing projects,” Owens said.

Owens also noted that this was the first commitment of tax credit equity to Housing Vermont since the passage of federal tax reform in December.

“While the housing and historic preservation tax credits were retained in the tax bill, the uncertainty around tax reform in general disrupted the national market for federal credits,” Owens said. “The investment by People’s United indicates that they understand both the value of these investments to Vermont communities and the highly successful track record of the housing developments we’ve created with tax credit investments.”

Housing Vermont expects to begin to commit equity from the People’s United investment within a month.