Bennington County is taking a major step to address one of Vermont’s most pressing challenges: a shortage of housing. On March 16, 2026, officials announced a new initiative, “Building Up Bennington,” to provide low-interest loans for the construction and rehabilitation of vacant housing units in the county. The program is a collaboration among the Vermont State Treasurer’s Office, local banks, and county development leaders. Per VTDigger

Addressing a Daunting Housing Shortage

Bennington County currently faces a need for nearly 1,500 new homes by 2030, according to Bill Colvin, Executive Director of the Bennington County Regional Commission. Housing demand is particularly acute for essential workers, including staff at the Southwestern Vermont Medical Center, the region’s largest employer.

State Treasurer Mike Pieciak emphasized the importance of housing in solving broader social and economic challenges:

“There’s almost no issue in Vermont that we can solve without building more housing,” he said.

The new loan program aims to make financing more accessible to developers and property owners, helping bring stalled or cost-prohibitive projects to completion.

How the Program Works

The initiative is funded with $2.5 million from the Treasurer’s 10% in Vermont program, which allows 10% of the state’s cash on hand to be allocated to projects that stimulate local economic growth. Developers can apply for loans up to $200,000 through Bank of Bennington, with a 3% fixed interest rate that takes effect once projects are complete.

The program targets both new construction and rehabilitation of vacant properties, recognizing that revitalizing existing housing stock can be a more cost-effective approach in many cases. Initial estimates suggest that the first $2.5 million could create at least 13 new housing units, with potential for the number to double if rehabilitation projects are prioritized.

Learning from Rutland

Building Up Bennington draws inspiration from the Roofs Over Rutland program, a similar initiative in Rutland City. That program used low-interest loans funded by the Treasurer’s office to generate roughly 90 new housing units over three years. Pieciak noted that all funds allocated to Roofs Over Rutland were fully committed to projects, highlighting the demand for creative financing solutions in Vermont’s housing sector.

Why It Matters

The lack of affordable housing in Bennington County has broader economic and social consequences:

• More than half of renters spend over 30% of their income on housing.
• Bennington County has the second-lowest homeownership rate in Vermont.
• Employers struggle to recruit and retain essential workers, increasing reliance on traveling staff, which raises operational costs, particularly in healthcare.
• Housing scarcity contributes to rising homelessness in the region.

By making more housing units financially viable, the Building Up Bennington program is expected to stimulate construction, expand rental and ownership options, and support local economic growth.

Jim Brown, President and CEO of Bank of Bennington, noted that developers are already showing interest and that several projects could move forward quickly with the new financing.

Looking Ahead

Lawmakers are also considering a housing bill that would increase funding for the 10% in Vermont program, potentially expanding the impact of similar initiatives. For real estate professionals, this program signals a period of increased development activity, with more opportunities for new listings, renovation projects, and community investment.

In a state where housing affordability is the number one social issue, Building Up Bennington represents a proactive approach to addressing long-term demand while supporting economic stability and quality of life.