Vermont is investing more than $3.7 million in downtown and village-center revitalization projects aimed at restoring historic buildings, creating housing and supporting local businesses across the state.
Announced October 20 by Governor Phil Scott and the Agency of Commerce and Community Development, the funding will support 41 projects across 31 designated downtowns and village centers. State officials expect the awards to help generate more than $20 million in building improvements. The investments are intended to bring vacant properties back into use, improve building safety and strengthen local commercial districts.
Historic Buildings to Become Housing
Several projects will directly expand Vermont's rental housing supply.
In Bennington, funding will help rehabilitate a long-vacant historic building at 212 Pleasant Street, bringing 11 market-rate apartments back into service.
In Northfield, a former Central Vermont Railway freight and lumber building dating to around 1852 will be converted into six two-bedroom rental apartments. Meanwhile, the former Park Street School in Springfield is expected to become 24 loft-style apartments through an adaptive-reuse project supported by tax credits.
Other awards will support housing and commercial space in existing downtown buildings. In Hardwick, rehabilitation work will preserve six rental units and restore three vacant storefronts for new locally owned businesses. In Waterbury, another project will create three affordable three-bedroom workforce homes in a former 1890s house.
Supporting Local Businesses and Community Spaces
The program also helps property owners address costly repairs and building-code requirements that can prevent older properties from being occupied or redeveloped.
In White River Junction, tax credits will support Northern Stage's expansion into a neighboring former VFW building, helping make the property suitable for theatrical education and additional performances.
These projects illustrate how rehabilitation funding can support multiple uses within Vermont's downtowns, combining residential units with shops, cultural facilities and other community spaces.
What It Means for Vermont's Housing Market
The latest awards come as communities across Vermont continue working to increase the availability of housing while maintaining the character of established downtowns.
Reusing existing buildings can create homes without relying entirely on new construction sites. It can also return vacant properties to productive use, support nearby businesses and make better use of existing infrastructure.
According to the governor's announcement, Vermont's Downtown and Village Center Tax Credit Program has helped create or repair more than 1,000 homes over the past decade, while leveraging more than $40 million in federal tax credits.
The new funding will not resolve Vermont's housing shortage on its own, but it provides targeted support for projects that might otherwise struggle to cover rehabilitation and code-compliance costs. For communities receiving awards, the investments could help turn underused buildings into housing, business space and more active downtown destinations.
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