By: VHFA

February 27, 2009

More than $14 million of economic aid funds have already been released to Vermont, less than 10 days after President Obama signed the American Recovery and Reinvestment Act (ARRA).

The funds are directed to state and local agencies through the:

  • Community Development Block Grant (CDBG) program
  • Homeless Prevention Program Fund
  • Capital Fund Formula Program
  • Low Income Housing Tax Credit (LIHTC) Assistance Fund

Vermont's congressional delegation today praised the U.S. Department of Housing and Urban Development for the quick turnaround.

Sen. Patrick Leahy said, “The economic recovery plan was designed to be timely, targeted and effective.  These grants and the swift work in putting these funds into service lives up to those goals.

"These grants are investments in affordable housing and preventing homelessness, which are two of the most wrenching problems created by the housing and economic crisis.”

Sen. Bernie Sanders said, “This funding couldn’t come at a better time.  It will go a long way toward addressing the affordable housing crisis and improving communities and towns throughout Vermont.”

Rep. Peter Welch said, “With these funds, struggling Vermonters will begin to receive the assistance they desperately need. I am relieved that just weeks after Congress passed the economic recovery bill, Vermont communities are being given the tools they need to fight homelessness and improve affordable housing.”

The funding includes:

  • $5.4 million in LIHTC funds to be distributed to the Vermont Housing Finance Agency to invest in projects that were previously awarded credits. These funds are intended to address the instability in the LIHTC equity market, which has prevented affordable housing construction projects from moving forward.
  • $2.2 million in CDBG grants directed by formula to the State of Vermont and the City of Burlington to help meet the needs of low-income communities. CDBG dollars support housing rehabilitation, support services, public improvements and economic development projects. The statewide funds and those allocated to Burlington will be distributed competitively.
  • $3.39 million in Homelessness Prevention Grant funds, which will provide assistance to help prevent individuals and families from becoming homeless and to quickly re-house those who are homeless. These funds will be targeted to help individuals and families who would be homeless but for this assistance.
  • $3.37 million through the Capital Fund Formula Program to be used to provide funds to public housing agencies to modernize and develop public housing.  In Vermont, the following housing authorities will receive funding:
    • Barre
    • Bennington
    • Brattleboro
    • Burlington
    • Montpelier
    • Rutland
    • Springfield
    • Winooski