Vermont Housing Improvement Program Secures Ongoing State Funding
Downstreet is excited to celebrate the statewide expansion of the Vermont Housing Improvement Program (VHIP).
VHIP is designed to increase the supply of safe, affordable housing across Vermont by providing 0% interest loans to property owners to create and improve rental properties. In return, owners agree to rent their properties at or below a Fair Market Rent for five to ten years, helping ensure fair rental opportunities in our communities.
This August, state lawmakers announced that VHIP will now have $4 million in "base funding," bringing greater stability to the program and strengthening its ability to address Vermont’s housing needs.
The announcement came at an exciting time and place for one Downstreet VHIP recipient, Noah Ponzio. Governor Scott held the August press conference at Ponzio’s recently rehabilitated fourplex in Bradford.
Ponzio, a nursing instructor who grew up in Orange County, and his wife bought the Bradford fourplex in 2024. At the time, the building was uninhabitable. Today—thanks in large part to the funding received through VHIP—the building is structurally sound, energy-efficient, and home to educators, manufacturers, and auto workers.
“VHIP funds were a significant and critical piece of the success of our project,” says Ponzio. “We could not have completed this project without VHIP. The cost to renovate is simply too high to use traditional loan financing and still offer affordable rents.” All of Ponzio’s Bradford apartments are set at a Fair Market Rent.
And Ponzio’s project is just one example of VHIP's growing impact. Since 2024, Downstreet has completed or started construction on 87 units through VHIP in partnership with local landlords.
Ryan Carptenter, Downstreet's Construction Project Coordinator, sees particular value in helping local property owners put existing buildings back to use. "While new construction may be necessary in some places, it is often more cost effective to renovate existing structures that already have utilities in place."
"Our clients are a success story on their own," continues Carpenter. "Participants receive funding and are able to create new homes for families that may not have had the opportunity otherwise."
Home is the foundation of our state. When Vermont invests in its housing stock, we help ensure that Vermonters can stay in their communities, live near where they work, and have homes that are affordable and reliable for years to come.
Downstreet will welcome new VHIP applications in the spring of 2027. To learn more about Downstreet and VHIP, click here.
