Richmond housing committee reviews state revolving loan fund after Buttermilk project fell short

Richmond’s volunteer housing committee discussed how the state Rental Revolving Loan Fund (RLF) might be used to advance workforce housing after members reported that a local proposal from Buttermilk did not qualify for the fund in fiscal year 2023–24.

At the meeting, a committee member said Buttermilk had estimated its Phase Two project at about $8 million and had sought roughly $500,000 from the town; state RLF guidance could allow loans up to $1 million–$1.5 million on top of other financing. Committee members emphasized that the RLF is a loan program—not a grant—and that applications typically expect evidence of matching commitments from an employer or other party. “It made it seem like you really needed to have some money kicked in by somebody else just to show that they were committed,” one member said.

The committee reviewed differences between the RLF and other housing incentives. Members noted VHFA-style incentives that tie payments by unit (one-bedroom roughly $10,000; two-bedroom $20,000; three-bedroom $30,000) and income bands the program targets, while stressing that the RLF’s short application turnarounds make readiness crucial. One participant described learning about an example application window that required a 48-hour turnaround and urged the group to prepare materials in advance so Richmond could respond more competitively in future cycles.

Members also discussed local matching strategies and a possible housing fund to seed matches. Carl, an invited guest from Hinesburg, urged tying any town funding request to a concrete project when taking a funding question to voters. He described Hinesburg’s practice of building a small revolving loan fund and using focused outreach (monthly newspaper articles, DRB participation) to build support before asking for larger municipal commitments.

Committee members agreed to keep the RLF “in the toolbox” but to do preparatory work: clarify what Richmond would provide as a match, assemble employer survey templates, and identify a process owner to gather required materials quickly. The group assigned drafting a strategy outline covering partner development, water/sewer considerations, tax abatements, and a housing fund for discussion at the next meeting.

The committee formally approved the prior meeting’s minutes and set a follow-up strategy session and the next regular meeting for Wednesday, July 24 at 5:30 p.m.