Housing advocates tell Vermont committee VHCB funding is essential for projects, workforce training

Members of Vermont’s housing and workforce‑training sector testified before the Vermont House Committee on Commerce & Economic Development on Feb. 13, urging lawmakers to fully fund the Vermont Housing & Conservation Board (VHCB) to preserve and expand locally led affordable‑housing work.

David Newell, president of the Prospect Mountain Association, told the committee the organization bought Prospect Mountain in 2018 for $900,000 and that a VHCB grant of $265,000 was critical to completing the purchase. Newell said the Prospect Mountain Nordic Trail Center supports local businesses and tourism — reporting about 27,000 skier days last season and roughly 380 season‑pass holders — and asked legislators to back VHCB’s budget request (he referenced $37,000,000).

Kathy Reynolds, incoming board chair of Cornerstone Housing Partners, described a July 2024 merger of three local housing groups that created a single organization managing “over 800 apartments” across two counties. Reynolds said merger support and flexible VHCB financing tools helped stabilize operations and expand capacity. She told lawmakers that Cornerstone and partner organizations depend on VHCB as part of the financing “stack” that leverages federal, private and philanthropic resources, and she urged the committee to fund VHCB at its statutory level.

Zach Watson, executive director of Central Vermont Habitat for Humanity, highlighted the CTE revolving loan fund — a 0% interest financing option administered by a local loan partner and available with partial forgiveness when used for affordable housing projects — and said it allowed construction to continue during a period of escalating costs. Watson described the fund as among the most effective recent housing measures, enabling Habitat and technical centers to complete multiple units and deepen student training opportunities.

Students and instructors from Randolph and Central Vermont technical centers described hands‑on participation in Habitat builds. Wyatt, a Randolph Tech student, said he learned drywall, plumbing and HVAC by working on an affordable home and later got a job with a local builder; instructors said students’ participation improved classroom learning, produced local hires and supplied a pipeline of trained workers for the construction trades.

Witnesses gave concrete examples of VHCB‑supported projects: Prospect Mountain’s trail center, West Rutland’s Marble Village (24 units) and multiple projects in Rutland and Bennington counties. They noted remediation costs and other development expenses that make private financing alone infeasible. Witnesses cited two similar but distinct funding figures during testimony — one referenced $37,000,000 and another the statutory figure of $37,600,000 — and asked the committee to fully fund the VHCB request in the governor’s budget.

The committee recessed for lunch and said it would return at 1 p.m. to consider H.385.