Housing providers tell committee full VHCB funding is needed to preserve affordable and supportive homes

Molly Dugan, co‑chair of the Vermont Housing and Conservation Coalition and an employee of Cathedral Square, told the House committee that the coalition — which represents more than 50 housing and conservation organizations — came to highlight the impact of sustained funding for the Vermont Housing and Conservation Board (VHCB).

"We are really here as a coalition to underscore the impact that these organizations you're going to hear from have had in communities," Dugan said during opening remarks, framing testimony around homelessness prevention and long‑term affordability.

Angie Harbin, executive director of Downstreet Housing and Community Development, gave detailed examples of projects VHCB helped launch and sustain. Harbin said Downstreet owns and operates more than 800 apartment rentals and 85 manufactured‑home lots and provides a range of supportive services and homeownership opportunities.

Harbin highlighted Foundation House, a recovery residence Downstreet opened in 2023 for women and women with minor children, and said Foundation House served 21 households in 2025 with an average stay of about six months and that 78% of those households moved on to permanent housing. "Full funding for Vermont Housing and Conservation Board supports healthy people and a healthy Vermont," Harbin said, attributing program outcomes to VHCB's early feasibility and capital support.

Harbin also described projects aimed at people with intellectual and developmental disabilities: a cluster model that sets aside three units with on‑site supports (Marsh House in Waterbury and Stevens Branch Apartments in Barre) and Hanes Best in Randolph, a small single‑family/ADU model that Upper Valley Services will operate. She said VHCB financing and technical assistance made these paired housing‑services models feasible.

Patrick Shattuck, executive director of RuralEdge, told the committee his organization manages about 1,000 units across the Northeast Kingdom and that roughly 43% of occupants moved into those units from homelessness. Shattuck described rapid conversions of existing properties to emergency shelters and a pipeline that includes a planned 40‑bed shelter conversion, and he warned that some short‑term affordability programs risk lapsing when temporary subsidy periods (for example, five years) end unless permanent affordability mechanisms are used.

Committee members asked operational questions. Harbin said Downstreet typically retains ownership of developments and more commonly uses master‑lease arrangements with partner providers (the operator takes day‑to‑day responsibility while Downstreet retains capital ownership) and executes memoranda of understanding to spell out referrals and vacancy procedures.

Several witnesses reiterated a single budget request: that lawmakers include the full statutory VHCB appropriation in the FY27 package. Legislative testimony and committee discussion noted the governor's proposed budget includes the full statutory investment of $37,600,000.

The committee did not take a separate vote on VHCB funding at the hearing; witnesses were invited to submit written testimony to be posted on the committee website.