Vermont commerce agency asks Legislature for $4 million in base funding to preserve BHIP and staff
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Summary
The Agency of Commerce and Community Development asked the House Appropriations Committee to add $4 million in base funding for the Housing Improvement Program (BHIP) to preserve grants and two staff positions that are limited‑service and set to expire this year.
The Agency of Commerce and Community Development (ACCD) told the House Appropriations Committee on Feb. 11 that it is requesting $4 million in base funding to continue the state’s Housing Improvement Program (BHIP), a multi‑year program that has funded nearly 1,200 housing units.
"We are asking for dollars 4,000,000 to be added to our base budget so that we may continue the very successful BHIP program," Secretary Lindsay Gurley said during the agency’s FY2027 presentation. ACCD said the program has grown through CARES and ARPA funding and is not established in statute, which has left its staffing and long‑term sustainability dependent on one‑time appropriations.
Alex Ferrell, Commissioner of the Department of Housing and Community Development (DHCD), told the committee the average BHIP grant has been about $40,000 and can reach $50,000 (and up to $70,000 for certain accessibility accommodations). BHIP grants are paired with a covenant on the property for either five or 10 years: the five‑year covenant is typically tied to rehousing someone exiting homelessness; the 10‑year option functions as a forgivable loan with phased forgiveness.
Ferrell said the program’s administration currently relies on limited‑service positions funded with one‑time dollars that expire this calendar year. "Base funding would enable us to go to the position pool to see 2 positions to keep BHIP," he said, explaining that permanent positions are a prerequisite for sustained administration.
Committee members pressed for data on outcomes. Ferrell said ACCD tracks post‑covenant outcomes and provided preliminary data showing that, of the first 60 units coming off five‑year covenants, 56 are remaining at HUD fair‑market rents and keeping tenants in place. He offered to provide the committee with a fuller stat packet.
ACCD staff said there is some administrative carryforward and a one‑time $450,000 appropriation that can cover part of FY27 salaries if the permanent positions are approved. The department asked the committee to approve the base ask so it can move forward with position requests to the state personnel pool; without base funding the limited‑service positions expire and BHIP administration would be at risk.
The committee did not vote on the budget during the session; ACCD’s full budget book and stat packets were offered as follow‑up materials and the agency said it would provide additional outcome data at the committee’s request.
