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ACCD asks legislature to make housing‑rehab program permanent, citing need to preserve affordable units
Summary
Agency of Commerce and Community Development leaders asked the House Commerce & Economic Development Committee to make the Vermont Housing Improvement Program (VHIP) permanent with a $4 million base funding request, saying ongoing funding is needed to retain staff and monitor more than 1,000 covenants tied to the program.
The Agency of Commerce and Community Development on Feb. 10 asked the Vermont House Committee on Commerce and Economic Development to approve $4 million in base funding for the Vermont Housing Improvement Program, or VHIP, a program officials say has helped return older, dilapidated units to the rental market.
"VHIP has actually made more out of the housing stock," Alex Farrell, commissioner of the Department of Housing and Community Development, told the committee, describing how the program helps owners convert large single‑family homes into multiple smaller units. He said VHIP has produced about 1,200 housing units over the last five years.
Farrell said the agency requests the $4 million to support predictable staff and grant funding, in part to preserve roughly 1,000 covenants that require monitoring. "We can't seek permanent staff without base funding," he said, adding that the agency would request two permanent positions tied to VHIP administration if the funding is approved.
Agency fiscal staff said the internal breakdown of the $4 million request would put about $250,000 toward staffing and the remaining roughly $3.75 million to grants payable to local partners and property owners. Dan Dickerson, ACCD director of administrative services, described the move as an effort to avoid ending the program after prior one‑time tranches expire: "Without the base funding, we are at extreme risk of not being able to continue this program," he said.
Supporters framed VHIP as a program that brings new landlords into affordability by offering incentives and short covenants that encourage property owners to house voucher recipients. Farrell said early exit data shows many owners choose to retain their tenants after five‑year covenants expire.
Committee members asked how many staff the agency would add; Farrell said the VHIP request would enable two positions. Members also pressed for documentation; ACCD committed to provide a stat sheet and more detailed budget breakout when the department returns next week.
If the legislature approves base funding, ACCD officials said the change would provide predictability for municipal partners, developers and tenants; there were no formal votes or motions recorded during the Feb. 10 presentation.
