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FHLBank Boston awards nearly $3M to support 124 affordable housing units in Vermont

Submitted by tim on

 

Vermont Business Magazine Federal Home Loan Bank of Boston (FHLBank Boston) awarded $47 million in grants, loans, and interest-rate subsidies through its Affordable Housing Program to support 49 affordable housing initiatives in New England and beyond. These projects will create or preserve 1,532 rental and homeownership units for individuals and families earning up to 80% of the area median income. As part of this funding round, Vermont received nearly $3 million to fund 124 affordable housing units in Brandon, Brattleboro, Grand Isle, and Newport.   

The grants and loans will be used for construction, acquisition, or rehabilitation costs. Financial institutions that are members of FHLBank Boston work with local developers to apply for funding, which is awarded through a competitive scoring process. This year’s awards will generate housing for low-income seniors, people with disabilities, veterans, formerly homeless individuals, and working families. 

“Over the last 35 years, FHLBank Boston has provided more than $800 million in grants and low-cost financing through the Affordable Housing Program to our members, enabling them to support affordable housing development in communities across New England. This funding is crucial as housing remains a pressing issue in urban, suburban, and rural parts of our region, and communities face ongoing challenges in creating and maintaining rental and ownership housing for low- and moderate-income households,” said FHLBank Boston President and Chief Executive Officer Timothy J. Barrett. 

FHLBank Boston provided its first Affordable Housing Program awards in 1990. In the past 35 years, FHLBank Boston’s Affordable Housing Program has supported the creation or preservation of more than 40,000 affordable homes. 

“We’re in the midst of a nationwide housing crisis, and cuts to crucial affordable housing programs in recent months have only made the situation worse. Vermont has been hit especially hard, with a record-breaking number of residents experiencing homelessness this year across our state,” said Vermont Senator Peter Welch. “This investment will help Vermonters secure stable and safe housing.” 

Vermont

Awards: $2,975,000 in grants
Number of Projects: 4
Number of Affordable Units: 124
Towns & Cities: Brandon, Brattleboro, Grand Isle, Newport

Location: Brandon
Member: Bar Harbor Bank and Trust
Sponsor: Housing Trust of Rutland County, Inc.
Affordable Units: 29 rental units
Subsidy: $425,000 grant

The former Brandon Training School, a mid-century modern building, will be repurposed into 29 affordable apartments in a mixed-use campus known as Park Village as part of the Three 33 Jones initiative. The initiative will include two ADA-accessible units and three units reserved for people transitioning from homelessness. The scope includes new windows, HVAC, and roof replacement, and upon completion will offer a common area with shared kitchen, laundry, and storage. A conservation easement will protect the surrounding land. The project is fully affordable with a mix of income levels including three units serving under 30% AMI, 15 units under 50% AMI, three units up to 60% AMI, and eight units at or below 80% AMI. The project is fully permitted, will offer robust resident services, and has strong community support. Union Bank will purchase Low

Location: Brattleboro
Member: Citizens Bank
Sponsor: Evernorth, Inc, Windham & Windsor Housing Trust
Affordable Units: 31 rental units
Subsidy: $850,000 grant

Chalet Apartments will create 31 rental housing units as part of a planned multiphase initiative, with this phase featuring the construction of a new three-story building adjacent to a historic motel that is currently serving as emergency housing. Future phases will include demolition and additional construction. Twenty units will be affordable to households earning up to 50% AMI, four will be affordable at 60% AMI, and seven affordable at 80% AMI. Eight units will be permanent supportive housing set aside for homeless and at-risk households. The project’s design will mimic the historic motel’s low-sloped gable roof and also include laundry, storage space, bike parking, and a new parking lot. Office space for a nonprofit service provider and a community space are also included in the project. Citizens Bank will provide construction financing as well as invest in Low Income Housing Tax Credits.

Location: Grand Isle
Member: Union Bank
Sponsor: Evernorth, Inc., Cathedral Square Corporation
Affordable Units: 24 rental units
Subsidy: $850,000 grant

Faywood Road will redevelop the Round Barn Apartments into 24 of affordable one- and two-bedroom units for seniors and non-elderly disabled residents. Fifteen units will be set aside for households earning up to 50% AMI and the remaining nine units for those earning up to 60% AMI. The project includes a deep energy retrofit of an existing eight-unit building and new construction of an elevator-serviced, sixteen-unit building. The site will include a solar array, community gardens, walking trail, and a pavilion. Upon completion, the project will achieve the National Green Building Standard’s Gold Certification, earning a Net Zero badge between both buildings. Financing includes project-based subsidies from the U.S. Department of Housing and Urban Development, Efficiency Vermont, the Vermont Housing & Conservation Board. Union Bank with provide a construction loan and make an equity investment in the Low Income Housing Tax Credits.

Location: Newport
Member: Community National Bank
Sponsor: Gilman Housing Trust, Inc.
Affordable Units: 40 rental units
Subsidy: $850,000 grant

Newport Crossing, an initiative undertaken by Rural Edge, is the comprehensive redevelopment of three properties in Newport City and Newport Center to create 40 apartments for households earning less than 80% AMI. Twelve units will serve homeless households. The development, which reuses a former convent with a new four-level addition and creates two new residential buildings, will include a mix of one-, two- and three-bedroom apartments. The project includes brownfields remediation, asbestos removal, and complex site logistics, with a preference for local contractors and Section 3 employment. The cornerstone of both neighborhoods’ revitalization plans, this project has strong community backing and support from multiple state and federal sources. Community National Bank will provide an equity investment in the project’s Low Income Housing Tax Credits.

For more details about each housing initiative, go here. 

About FHLBank Boston

The Federal Home Loan Bank of Boston is a cooperatively owned wholesale bank for housing finance in the six New England states. Its mission is to provide highly reliable wholesale funding and liquidity to its member financial institutions in New England. The Bank also develops and delivers competitively priced financial products, services, and expertise that support housing finance, community development, and economic growth, including programs targeted to lower-income households.

12.19.2025. BOSTON — Federal Home Loan Bank of Boston (FHLBank Boston) 

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