Housing Trust Fund

How it works

The Montpelier Housing Trust Fund helps create and preserve affordable housing in Montpelier. The page says the fund supports new construction, renovations, accessory dwelling units, and down payment assistance for homebuyers.

The City Council revised the fund in early July 2026 to add a new, second-round program for construction of housing within Montpelier. This newer program expands eligibility and flexibility so more housing developments are possible.

There are four ways to get funding through the fund:

• Affordable Housing Project Grants
• Accessory Dwelling Unit (ADU) Loans
• Shared Equity Down Payment Assistance
• Limited Grants and Loans

What the money covers

• Affordable Housing Project Grants: for nonprofits and housing authorities building or rehabbing housing where at least 20% of units are affordable and remain affordable for 15+ years.
• ADU Loans: for Montpelier property owners adding an accessory dwelling unit, with rent limits.
• Shared Equity Down Payment Assistance: for homebuyers purchasing a home in Montpelier who live, work, or attend school nearby.
• Limited Grants and Loans: for Montpelier property owners with a housing project.

Amounts and matching

• Affordable Housing Project Grants: $25,000–$150,000 per project.
• ADU Loans: 0% interest loans up to $50,000.
• Shared Equity Down Payment Assistance: $20,000–$80,000 per unit.
• Limited Grants and Loans: grants up to $10,000 per parcel or 0% loans up to $50,000 per project.

How to apply

The page says applicants should:

1. Read the Housing Trust Fund Guidelines for the specific program.
2. If applying for ADU Loans or Shared Equity Down Payment Assistance, apply with Downstreet Housing & Community Development.
3. Fill out the Application Questions describing the project, budget, and timeline.
4. Sign the Application Cover Sheet and gather attachments such as a project budget or proof of site control.
5. Email everything to planning@montpelier-vt.org.

Timing and deadlines

• Affordable Housing Project Grants are due 45 days after the annual funding notice is posted; the page says this is typically mid-August.
• Limited Grants and Loans are due 90 days after their funding notice.
• The page says the fund operates in occasional funding cycles for some programs.
• City staff review applications for completeness before they go to the Housing Committee and City Council for a funding decision.

Additional notes

The page says each program has its own eligibility rules and funding priorities, and that the full Guidelines should be reviewed before applying.