Vermont housing authority proposes $3 million bridge rental assistance to support 200 families while federal vouchers lag

The Vermont State Housing Authority on the legislature’s homelessness panel proposed a $3,000,000 state-funded "bridge" rental assistance program intended to plug gaps while federal Housing Choice Voucher funding is constrained. Kathleen, identified as director of the Vermont State Housing Authority, and Elizabeth Bacon, managing director of housing programs administration, described a program modeled on existing voucher operations and a long-running "housing subsidy plus care" partnership with the Department of Mental Health.

The agency said Congress appears likely to pass HUD appropriations but industry forecasts indicate Vermont may receive roughly 95% of the funding needed, which would not create new slots for families now waiting for vouchers. "So what we're envisioning is a program run very similar to the housing choice voucher program," Elizabeth Bacon testified, adding the goal is to move participants to federal vouchers when they become available.

The presenters said the proposal would include both tenant-based and project-based subsidies, prioritize highly vulnerable populations (for example, families exiting homelessness and those involved in child welfare), and operate without fixed short time limits so families do not fall off a cliff when short-term subsidies end. The agency estimated the initial $3,000,000 investment could serve about 200 households for 12 months and recommended multiyear funding to increase landlord participation and stability.

On costs and administration, panelists discussed a per-household figure shown in a slide (about $12,240 per household in one presentation slide) and said that figure included an administrative fee modeled on an existing program (about 10 percent). Elizabeth Bacon said VSHA’s current average housing assistance payment is about $953 and that assistance in the agency’s portfolio ranges roughly from $5 to $2,500 depending on family needs.

Lawmakers pressed presenters on how the state program would intersect with existing short-term rental assistance programs and whether AHS departments would pool funds; Bacon and Kathleen described an AHS-wide referral model rather than duplicative, separate programs and said they are meeting with Agency of Human Services leaders to refine eligibility and performance measures. The agency also noted its statewide landlord relationships and that subsidies would appear to landlords simply as rent payments rather than program labels.

The committee did not take formal action during the session; presenters said they would return with planning details, administration cost estimates, and recommended priority populations.