Vermont housing board urges lawmakers to shore up funding to keep $70M pipeline moving

Officials from the Vermont Housing & Conservation Board told the House Committee on General & Housing in February that shrinking state funding risks slowing a roughly $70 million pipeline of housing applications and asked lawmakers to consider a $12 million one‑time appropriation.

Polly Major, director of policy and special projects for the Vermont Housing & Conservation Board, told the committee that VHCB’s investments produce a “catalytic impact” on people and communities and help avoid other state costs. “That catalytic impact is on people. It’s on communities,” Major said, adding that pandemic‑era resources have enabled VHCB to touch more than 5,600 homes across Vermont.

Why it matters: VHCB said reduced state signals can stop early‑stage feasibility work, curtail hiring of architects and engineers and slow projects that rely on tax credits and private capital. Major told the committee VHCB expects about $70 million in applications across this year and next but has only a few million dollars immediately available to allocate.

What VHCB asked for: VHCB staff said the board is requesting a $12 million one‑time appropriation to be split into roughly $3 million for shelter projects, $3 million for projects serving people with intellectual and developmental disabilities, and $6 million for general housing needs. The board also said it is targeting a shift to direct about 65% of property‑transfer‑tax trust funding toward housing (up from the statutory 50/50 split) to meet demand, subject to final appropriator decisions.

Funding details and leverage: VHCB explained its base funding comes from a statutory allocation of the property transfer tax and described how tax‑credit financing (9% and 4% federal credits) and other private investment lever large development projects. Major said a recently created $12 million fund — described in testimony as the result of congressional or senator‑level earmarks directed to VHCB — aims to deepen rental affordability and support supportive housing.

Costs and outcomes: VHCB presented per‑unit cost ranges that vary by project type, citing average multifamily costs in the hundreds of thousands per unit and shelter projects that are harder to leverage with outside equity. The board said its permanently affordable portfolio housed about 2,000 formerly homeless Vermonters over five years and has helped double shelter capacity since 2020.

Developer and project examples: VHCB and board members described multiple local projects where small early investments unlocked larger private development, including conversions of vacant buildings into housing. A specific large proposal discussed during the hearing — variously described as needing about $7 million of VHCB support toward a 240‑unit, roughly $100 million project — illustrates how a relatively modest state share can unlock substantial private capital, but staff cautioned against concentrating limited one‑time funds in a single project year.

Follow up and next steps: Committee members asked VHCB to provide additional unit counts and project‑level details for the $70 million pipeline; VHCB agreed to follow up. The committee recessed and planned a joint hearing at 1:00 p.m. with the Human Services Committee to receive a report on The Road Home.

Sources: Testimony to the House Committee on General & Housing by Polly Major and other VHCB officials; VHCB presentation slides and chart figures provided during the hearing.