Vermont is putting another $25 million into low-interest financing aimed at tackling what state officials call an ongoing housing crisis that affects renters, first-time buyers, and long-time homeowners alike. Treasurer Mike Pieciak announced the new funding Tuesday at a news conference in Berlin, saying the money will flow through the state’s Invest in Vermont program, which uses a portion of the state’s average daily cash balance to provide loans for housing and economic development projects without relying on tax dollars.
“Our state continues to be in desperate need of more housing,” Pieciak said. “Housing in Vermont is simply too expensive, whether you are a renter, whether you’re a first-time homebuyer, or whether you’re somebody that’s lived in your home for 30 years and is trying to maintain the home and trying to keep up with property taxes.”
The program was previously known as “10% in VT,” but the Legislature expanded its lending capacity by 2.5 percentage points through this year’s major housing bill, S.328, prompting the new name. Since its inception, the program has invested more than $130 million into housing and other initiatives across Vermont, leveraging over $600 million in outside capital and supporting nearly 1,700 units of housing for working families, seniors, and those exiting homelessness. The funding is also credited with creating nearly 200 permanent jobs.
A request for proposals went out Tuesday with proposals due by September 4. Alex Farrell, commissioner of housing and community development, said the governor is grateful for the partnership with the treasurer’s office and said the administration will keep looking for ways to speed up the regulatory process for residential construction projects large and small, especially in rural parts of the state where housing needs are acute.
Pieciak noted that earlier this year his office announced $4 million in financing through the program for The Village at Winston Prouty in Brattleboro. He said investments like these allow projects to move forward at a more affordable price, though he acknowledged there is still much work ahead to meet Vermont’s housing needs.