Executive Order No. 10-36 (No. 02-10) [Enhancing Investments in Affordable Housing]
WHEREAS, a Tiger Team comprised of a skilled group of state employees with solid financial
and analytical skills was formed to profile and review key financial data of Vermont’s
affordable housing delivery system and to suggest and explore opportunities to enhance
the efficiency of the system; and
WHEREAS, five statewide entities serving state government, including the Vermont Housing
Finance Agency (“VHFA”), the Vermont State Housing Authority (“VSHA”), the Housing
Foundation, Inc. (“HFI”), the Vermont Housing and Conservation Board (“VHCB”), and
the Department of Economic, Housing, and Community Development (“DEHCD”), and at least
twelve non-profit housing organizations, have as their primary purpose the common
mission of serving the affordable housing community; and
WHEREAS, the five statewide entities employ over 130 employees, including three executive
directors, a commissioner, and supporting staff, and consist of four separate Boards
with 37 individual board members; and
WHEREAS, the five statewide entities often collaborate to provide funding to the same
affordable housing projects, especially through Vermont’s non-profit affordable housing
network; and
WHEREAS, the five statewide entities’ net assets are largely comprised of loan receivables
held by VHFA and VHCB; and
WHEREAS, the viability of Vermont’s affordable housing delivery system is dependent
upon preserving the economic value of receivables created by investments of Vermont
taxpayers and maximizing the direct benefit of these investments to Vermonters seeking
affordable housing; and
WHEREAS, the Tiger Team observed that the current design and implementation of the
state’s affordable housing delivery system may foster a level of undue complexity
and duplication of efforts, resulting in greater administrative costs and less direct
investment in the construction and maintenance of affordable housing; and
WHEREAS, the Tiger Team observed that operating and personnel expenditures for non-profit
housing organizations has increased substantially greater than the rate of inflation
for the period 2005-2008; and
WHEREAS, the Tiger Team observed that changes to housing policy may result in increased
revenue that could be used for investment in more affordable housing; and
WHEREAS, the Tiger Team’s review concluded that a 10% savings in administrative costs
within the five statewide entities alone would result in approximately $900,000 annually
in direct investment in affordable housing, which could generate $20 million or more
in additional investments in affordable housing if leveraged over a 30 year term and
preserve the financial value of past capital investments in affordable housing; and
WHEREAS, further review of the state entities’ affordable housing delivery system
is warranted given the substantial resources currently dedicated to funding that system
and the potential for savings and efficiencies.
NOW, THEREFORE, I, James H. Douglas, by virtue of the power vested in me as Governor,
do hereby direct the Commissioner of the Department of Economic, Housing, and Community
Development to convene the necessary resources and stakeholders, as he shall deem
necessary, to explore the redesign of, and business process improvements to, the state
affordable housing delivery system to achieve savings and efficiencies which shall
be used to make additional direct investment in affordable housing.
The Commissioner shall, in consultation and conjunction with VHFA, VSHA, HFI, VHCB,
and DEHCD:
1. Conduct an in-depth review of the existing organizational structures and business
processes of the five state affordable housing entities and make recommendations to
improve their effectiveness and increase efficiencies;
2. Recommend and procedures to ensure loan receivables held by the state affordable housing
entities are managed in a fiduciary-oriented manner to ensure these substantial assets
are available as a current and future resource for additional investments in affordable
housing; and
3. Provide a written report to the Governor and to the General Assembly no later than
September 1, 2010 containing all findings and recommendations to achieve the purposes
of this Executive Order.
This Executive Order shall take effect upon execution and shall expire upon delivery
of the written report to the Governor and the General Assembly.
Dated March 18, 2010.