VHCB tells Senate committee capital funds deliver long-term housing and water-quality gains

The Vermont Housing & Conservation Board told the Senate Institutions Committee on March 12 that capital-bill investments produce long-lived public benefits by combining housing, conservation and water-quality work.

“For the record, Im Gus Seelig. Im the Executive Director for the Vermont Housing and Conservation Board,” Seelig said, framing VHCBas an agency that aims to deliver multiple public benefits. He highlighted a 150-acre Morristown property where eight former vacation rentals will be converted to permanently affordable year-round homes while the land is conserved to protect the Winooski River.

Liz Gleason, who manages VHCBFarm and Forest Viability Program and the Rural Economic Development Initiative, described how the boardtargets working lands and small businesses. She said the programhas helped businesses grow: 71% of participating firms grew in the year after completing the program, 80% added jobs, and average sales increases exceeded $50,000; the program has helped participants access about $5.5 million in grants and loans.

Gleason outlined VHCBfarmer water-quality grant program, launched in 2017 to complement NRCS and Agency of Agriculture funding. She said VHCB has awarded roughly $5.5 million directly to farmers since 2017 and that last year VHCB issued just over $600,000 in water-quality grants that leveraged about $3.5 million of additional on-farm investment.

Gleason named several on-farm projects supported by the grants: covered barnyards and compost systems at Salisbury Farm, bedded-pack and manure-management upgrades for Grass Cattle Company, winter housing adjustments at Pegasus Meats, and grazing adjustments at Bread and Butter Farm to keep livestock out of wetlands and reduce runoff.

Stacy Zibell, VHCBAssociate Conservation Director, described conservation investments supported by the capital bill, including the Wolcott Community Forest (more than 700 acres with wetlands and stream miles), Memphremagog Floating Classroom support, and habitat restoration projects such as the Tangway farm buyout in the Northeast Kingdom, where flood-prone acres will be returned to floodplain forest.

Zibell said conserved farmland in the state is a mix of uses (her presentation cited roughly 14% annual crops, 33% forest, 43% pasture/hay, and 10% wetlands) and that since 2019 VHCB-backed projects have established more than 80 miles of riparian buffers and protected about 1,400 acres of wetlands to improve water quality.

Gleason also described the Rural Economic Development Initiative, which funds two grant writers who help towns and working-land businesses apply for federal programs. VHCB funding for those positions—about $1.2 million in state allocation plus match—helped communities secure roughly $35.5 million for revitalization and infrastructure projects, she said.

Committee members asked about statutory limits and eligibility, including a restriction on some programs to towns with populations under 5,000; Gleason said VHCB is exploring small statutory tweaks to broaden eligibility for certain programs. Committee members and VHCB staff also discussed program delivery details, financing terms, and how VHCB typically structures state assistance (deferred loans or grants with mortgages to retain recapture rights when appropriate).

The board did not request a specific standalone appropriation during the presentation. VHCB officials emphasized that capital investments in real estate and conservation deliver benefits that persist after bond payments end and that the board often acts as a catalytic partner to leverage federal funds, private philanthropy and local partners.

The committee concluded the briefing by thanking VHCB staff and indicating follow-up on statutory language and partnership options would continue.