The Greater Ohio Policy Center, in partnership with the Lincoln Institute of Land Policy (LILP) has been studying statewide policies that support legacy cities in addressing weak-market neighborhoods. In Vermont, the Housing and Conservation Trust Fund (HCTF) showcases the state’s unique investments in both affordable housing and land conservation. The Vermont HCTF provides grant and loan funding to achieve its dual goals of developing affordable housing and protecting natural and historic resources.
For housing projects, HCTF provides loan and grant funding for the acquisition, rehabilitation, and construction of affordable housing. Eligible projects include: rental housing, mobile home parks, single-family homeownership opportunities, and service supported housing for seniors, victim of domestic violence, or persons with physical, developmental, or mental disabilities. Funded projects typically serve persons earning between 30 and 80 percent of the area median income. Projects write housing subsidy covenants into the property’s land records, maintaining long-term affordability for the project. Established in 1987, the HCTF provides funding to non-profit housing and conservation organizations with federal 501(c)(3) status, as well as all Vermont municipalities and some state agencies.
The HCTF is administered by the Vermont Housing Conservation Board (VHCB), established at the same time as the trust. VHCB staff review applications for funding, conduct site visits, and provide reports to the 11-member Board of Directors. The Board then decides whether to approve or deny project funding based on demonstrated long-term benefit to the state. The program is funded through state Property Transfer Tax (PTT) revenue; 50 percent of total PTT revenue is statutorily allocated to HCTF, a mandate that protects the program’s funding. While there is no requirement for how VHCB allocates funding between housing and land conservation, the organization prioritizes projects that address the program’s dual goals.
VHCB has awarded $322 million to housing and conservation organizations, municipalities, and state agencies to “conserve land, develop housing, and restore historic community buildings in more than 200 towns” (Vermont Housing and Conservation Board, 2020). VHCB also notes that state investments have leveraged $1.5 billion in additional public and private investment and resulted in 12,500 affordable homes, 430,800 acres of conserved agricultural and recreation land, and 69 rehabilitated historic properties for public use.
Vermont’s HCTF uniquely funds both land conservation and the construction of affordable housing. This distinctive structure was born out of a coalition of land conservation and housing advocates who joined forces in the 1980’s to link both interests under a single agency that would protected both housing and farmland, forestland, and natural areas from land speculation. The now 33-year-old program has been highly successful in improving quality of place, encouraging collaboration among organizations, and serving a large subset of Vermont’s population.
For more information, visit the Vermont Housing Conservation Board https://vhcb.org/our-programs/
Cover photo courtesy of Vermont Housing & Conservation Trust Fund.