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Council approves two CDBG-DR submissions for North End Gateway project
Summary
Barre City Council approved two round‑2 CDBG‑DR housing applications for the North End Gateway project — one covering elevations and buyouts and a second for acquisitions — after staff described a narrowed applicant pool and fallout over a federal resale restriction.
The Barre City Council on Feb. 10 voted to authorize two round‑2 Community Development Block Grant Disaster Recovery (CDBG‑DR) applications for the North End Gateway project, approving an elevations-and-buyouts submission and a separate acquisitions submission.
City Manager Nicholas told the council staff split the project into two applications after receiving feedback from the Vermont Agency of Commerce and Community Development that combining acquisitions with elevations risked jeopardizing funding for the stronger elevations and buyouts application. "The 2 awards we were notified of was $3,300,000 for Prospect Heights and $591,000 for Gunners Brook," Nicholas said, reporting the city had later learned of the congressional-directed awards and that the round‑2 deadline was Feb. 27. He said staff were working with BADC and a grant-writing team to finalize the narratives.
The manager said program rules introduced a significant complication for some homeowners who had considered elevations: a 20‑year resale or program‑income restriction that could require homeowners to forfeit equity if they sold within the term. "Because of that, we've lost 7 of the elevation applicants," he said, adding that three owners remained committed. Councilors asked whether the restriction was federal or state; staff responded it stems from federal program rules but that the local implementation and instruments could be negotiated and that the city attorney and ACCD had been consulted on possible protections or formula adjustments.
Councilors raised concerns about homeowner risk and the potential fiscal exposure to the city if homeowners sold and grants were clawed back; Nicholas said staff were exploring legal instruments to shield the city and homeowners and pursuing discussions with the administration and ACCD. With no further discussion, the council approved Resolution 2026‑1 (elevations and buyouts) and Resolution 2026‑2 (acquisitions) by voice vote.
Next steps include finalizing application packages for submission, continuing homeowner outreach, and working with partners to explore options for mitigating the resale restriction's impact.
