Select Board approves Champlain Housing Trust priority agreement, urges talks on repaying Richmond's $300,000 VCDP loan

The Richmond Select Board on July 6 approved a priority agreement that lets Champlain Housing Trust (CHT) substitute Mascoma Bank for TD Bank as the primary lender on mortgage debt that secures several affordable-housing properties, including the 16-unit Borden Street apartments, while explicitly reserving the town's rights under the original VCDP loan.

The board's motion, moved by Caitlin (member) and seconded on the record, directs Town Manager Josh Arneson to sign the agreement and attaches a clear expectation that CHT and the town will initiate discussions by Sept. 30, 2026 about repayment of Richmond's $300,000 Vermont Community Development Program (VCDP) loan.

CHT representatives said the refinancing is a one-for-one replacement of the existing private debt and is not a cash-out refinance. "We're gonna switch over to Mascoma, and, therefore, we need to come and ask that you all, allow us to put Mascoma into the seat of the TD Bank in terms of our priority agreement," said Amy Dimitrowitz of Champlain Housing Trust. Luther Kinney, also with CHT, explained the transaction is rolling the existing balance and that "the balance that's attributable to the Richmond property is, $286,000."

Several residents and board members pressed CHT on whether the earlier town loan would ever be repaid. Mary Hall, a longtime Richmond resident who tracked the original grant, said the $300,000 "belongs to the town of Richmond" and urged the board to hold CHT to account. Dimitrowitz said the original federal grant terms and subsequent funding changes make straightforward repayment difficult: that loan's federal restrictions and the structure of the affordable-housing funding mean repayment would likely require borrowing from another source and could increase tenant rents. She said CHT will return with VCDP staff ahead of the loan's March 2029 maturity to discuss options.

Board members debated whether approving the priority swap now would limit the town's leverage. Several members supported approving the narrow substitution (replacing TD Bank with Mascoma) to avoid disrupting CHT's refinancing timeline while adding nonbinding policy language to the motion demanding that repayment discussions begin promptly. "This approval is granted without waiver of any of the town's existing rights and remedies under the VCDP loan and mortgage, and with the clear expectation that the town of Richmond will be repaid the town's investment and interest, and that discussions between the town and Champlain Housing Trust to achieve this will be initiated by 09/30/2026," the motion as recorded states.

The board approved the motion and named Town Manager Josh Arneson as the town's authorized signatory for the priority agreement. CHT said it needs the signed priority agreement to close with Mascoma by July 19; the refinancing will not change the March 2029 maturity date for the town's VCDP loan.

What happens next: CHT agreed to return with more detailed capital and financial information and to coordinate a meeting (board members suggested including the affordable-housing committee and town staff) before the March 2029 maturity date. The town's motion does not legally compel repayment but places a public expectation and requires follow-up discussions.

Reporting note: The article uses direct quotes and figures spoken at the July 6 meeting. The town's VCDP loan amount and the loan's March 2029 maturity date were reported by CHT staff during the meeting; the board recorded the motion on the public record.