State and local leaders joined Vermont’s state treasurer to unveil a new round of housing investment awards.
The 10% in VT program authorizes the state treasurer to invest up to 10% of the state’s average daily cash balance into the Vermont economy. Treasurer Michael Pieciak explained that recipients receive low-interest loans that offset high interest rates that could prevent financing of housing projects.
“In our first term as treasurer we expanded this program’s capacity by over $100 million and dedicated the investment to housing across the state. Through a $56 million partnership with VHFA these dollars have been invested in over 20 communities across Vermont and hundreds and hundreds of more units are currently being built.”
On Monday morning, Pieciak announced $30 million in additional funding from the program to further address Vermont’s housing shortage.
“These investments will support over 450 homes across the state, adding hundreds of new units of housing stock to Vermont. Additionally, the projects that we’re investing in will leverage another $200 million of private and public capital, sparking further investment in our cities, downtowns and rural communities. And a number of the investments that we’re making today are the first phase of a much larger development vision. So these investments have the potential to unlock many, many more homes into the future.”
The Vermont Housing Finance Agency, or VHFA, is a quasi-governmental agency that provides loans to build affordable housing. Executive Director Maura Collins says for too long people accepted that the lowest income people were those struggling with housing costs.
“Then we started to see that college graduates, they were struggling to find places to live. Then we started finding mid-level workers earning a good salary couldn’t find a place. And now we hear about the medical center and others who are paying six-figure salaries to folks who cannot find a place to live. And so the housing shortage is impacting every element of our economy. It is holding back growth. It is holding back businesses. It is holding back our communities and we have to do something about it.”
Collins noted that VHFA is working on five of the projects that will be funded through the new $30 million allocation.
“VHFA is a proud partner to have this money that is going out to address home ownership, creation and building homes for people to purchase, rental housing. We’re touching flood impacted communities, manufactured homes, trying to spread this across the state broadly.”
Heritage Family Credit Union is another partner in the 10% in VT program. Chief Lending Officer Sarah Furman said Roofs Over Rutland has added about 100 homes to the city thanks to the program.
“With the state’s low cost funding, we were able to offer affordable loans to the local developers. The creative local minds and the state’s willingness to do something new is what made nearly 80 new housing units in the city of Rutland possible. Without this local funding these projects would not have moved forward. This program has brought new energy and real momentum to the city.”
According to the treasurer’s office, since 2023 the 10% in VT program has invested “over $100 million in housing, economic development, and municipal flood recovery.”