Vermont § 36 - Executive Order No. 10-36 (No. 02-10) [Enhancing Investments in Affordable Housing]

§ 36. 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.