Agency of Commerce and Community Development seeks $105 million budget, plus $41.6M in one‑time housing and infrastructure requests

The Agency of Commerce and Community Development (ACCD) presented its fiscal year 2026 budget to the Senate Appropriations Committee on Feb. 19, asking for a proposed total budget of about $105,000,000 and $41,600,000 in one‑time requests focused on housing, infrastructure and business development.

ACCD Secretary Lindsay Curley said the $105 million figure includes a mix of federal, state and special funds: roughly $63.4 million in special and federal sources, about $27.0 million in general funds (about 43 percent), a portion identified as roughly $20.0 million in federal funds, and the remainder from special funds and interdepartmental transfers. She told the committee the agency is proposing $6.8 million in new base initiatives and roughly $41.6 million in one‑time investments.

Why it matters: ACCD programs fund housing production and preservation, tourism, economic development, and municipal infrastructure that localities use to site new housing or commercial projects. Many of the one‑time requests are intended to unlock additional private or federal capital and to make long‑running, short‑term programs permanent.

Key components of the request

- Vermont Housing Improvement Program (VHIP): ACCD asked for $4,300,000 in ongoing base funding, described as $4,000,000 for grants plus $300,000 to convert two limited‑service positions into permanent staff to operate the program. Commissioner Alex Farrell said VHIP has funded over 1,000 housing units to date and is used to rehabilitate rental units, convert nonresidential space to housing and preserve units for households exiting homelessness. Farrell said the program offers compliance options tied to statute, including a five‑year covenant with homelessness preference or longer covenants with relaxed rent requirements.

- Manufactured Home Improvement and Repair Program (MERR): The department requested $2,150,000 in ongoing base funding (presented as $2,000,000 for grants plus $150,000 to convert one limited‑service position to permanent). Farrell said the program invests in home repairs, park infrastructure (roads, water) and creation of additional lots to keep manufactured‑home residents housed on leased land.

- Infrastructure Sustainability Fund (one‑time request, $9,100,000): Farrell and Curley described a new revolving loan program administered by the Vermont Bond Bank to provide low‑cost, patient capital for municipalities to build water/wastewater, access roads, streets and sidewalks that are prerequisites for housing production. Awarded loans would require a demonstrated tie to housing unit production.

- Middle‑income homeownership and rental revolving loan funds (one‑time requests to VHFA, $15,000,000 each): The requests would capitalize two VHFA programs aimed at households above lower‑income thresholds (targeting income bands above typical 60–80% AMI programs) to support mixed‑income developments: subsidies to developers and, for the homeownership program, sliding‑scale buyer subsidies that can revolve back to the fund on resale.

- Rental Revolving Loan Fund (one‑time, $15,000,000): Intended to provide low‑interest capital for developers creating rental units within the target middle‑income band.

- Brownfields Revitalization Fund (one‑time, $2,000,000): Commissioner Michelle Goldsford said the department has used earlier brownfields funds to leverage private redevelopment and requested additional one‑time capital to support projects statewide.

- Vermont Professionals of Color Network (one‑time, $250,000): The request would fund technical assistance, workforce development and business support for BIPOC entrepreneurs; tourism staff also noted the network as a grantee for relocation and workforce efforts.

- Tourism and Marketing (no new base ask): Commissioner Heather Pelham said the Department of Tourism and Marketing (14 staff) requested no base increase for FY26. Pelham reviewed the department’s multi‑year federal COVID recovery grant of roughly $10.4 million that funded two limited‑service positions and marketing assets. She cited a 2023 economic impact study showing about 15.8 million annual visitors, $4.0 billion in direct visitor spending and roughly $282 million in tax revenue. Pelham outlined four program areas: destination marketing, destination development, relocation (“Grow” grants), and a chief marketing office that supports plain‑language and ADA‑accessible communications for state agencies.

- Economic Development programs and international business development (base expansion request): Commissioner Michelle Goldsford described ARPA‑funded economic assistance ($50 million distributed to 155 projects) and asked to make an international business development program permanent (to continue market representation and export assistance that has included a Canadian in‑market consultant). She said international outreach and targeted trade missions (examples given: Canada, Ireland, Europe, Asia) aim to attract foreign direct investment and help Vermont firms export.

- Administration and legacy items: Dan Dickerson, ACCD administrative services director, said the administration division will absorb a US Treasury EB‑5 integrity fee for FY26 while litigation remains open on some cases; he also noted a requested increase to a grant for the Vermont Stable Jobs Fund (from $250,000 to $275,000 in FY26).

Committee questions and program operations

Committee members asked about program guardrails and administration. Pelham and Farrell described reporting and eligibility requirements: the Grow relocation grants fund local organizations (not direct payments to relocating families) to provide concierge services and track conversion from prospect to relocated household; VHIP program design includes statutory safeguards intended to prevent displacements; manufactured‑home funding targets households that lack access to typical home‑equity borrowing because they lease land; and the infrastructure fund requires a demonstrated connection to housing targets.

No formal committee votes or motions were recorded in the transcript; the session recorded presentations, follow‑up questions and clarifications.

What happens next

ACCD staff said statutory and federal timelines will affect implementation of some items (for example, CDBG‑DR action plan submission and federal grant timelines). Several proposals were presented as either base (ongoing) funding needs or one‑time capital to be deployed as revolving funds or grants; committee deliberation and appropriation decisions will determine which requests move forward.

Ending note

Representatives from ACCD concluded by thanking the committee for the review and fielding additional questions on program detail and administrative mechanics.