New homes are built at the Hillside at O’Brien Farm development in South Burlington in 2020. The largest awarded project was $1 million grant to develop mixed-income apartments in the Hillside development. File photo by Glenn Russell/VTDigger

The state announced $2.22 million in community development block grants on Thursday, federal money that will go toward six projects around Vermont.

Three of the six are mixed-income housing developments.

โ€œThe Community Development Block Grant program is an essential resource for Vermont, supporting important projects that benefit Vermonters and their communities,โ€ Gov. Phil Scott said in a press release. โ€œBringing together public and private partners, the program makes a big difference in our redevelopment and revitalization efforts throughout all corners of the state.โ€

The biggest project is in South Burlington. The city government, in partnership with Ascend Housing Allies, was awarded $1 million to develop 94 units of mixed-income apartments in two 47-unit buildings in the Hillside development at the Oโ€™Brien Farm community.

โ€œThatโ€™s where we see an opportunity for growth,โ€ South Burlington City Councilor Matt Cota told VTDigger. โ€œHaving it be made permanently affordable is really important. Weโ€™ve seen tremendous growth there and thereโ€™s more to come. Itโ€™s a good thing for our city because we need more housing and we need a diverse mix of housing.โ€

The city council has been divided over where to develop housing in South Burlington, weighing concerns about preserving natural lands.

Of the 94 units, 71 will be permanently affordable and 23 will be rented at market rate, said Thomas Getz Jr., CEO of Summit Properties, which is developing the property along with Ascend Housing Allies. The affordable units will be available to people earning less than 60% of median income, Getz told VTDigger. Twenty of the affordable units will be set aside for people with no homes and who are at-risk, and supporting services will be available, he said. 

Getz said Summit plans to break ground this fall and have the project completed by 2024. He said the two buildings will cost a total of $29 million. 

โ€œThis is the largest development that weโ€™ve done at one time,โ€ Getz said. 

The Vermont Housing Finance Agency, the Vermont Housing and Conservation Board and the Vermont Agency of Commerce and Community Development together are providing almost $20 million in financing for the project, Getz said.

Community development block grants provide federal money to communities for projects that assist low- and moderate-income residents. The Vermont Department of Housing and Community Development awards funding three times a year, and typically awards between $7 million and $10 million to projects, Josh Hanford, commissioner of housing and community development, told VTDigger. 

Other grants include:

  • $850,000 to the Randolph Area Community Development Corp. to build 12 affordable housing units.
  • $250,000 to the Arlington Arts and Enrichment Program to renovate three vacant buildings on St. Margaret Mary Catholic Church property into a community event space, a community wellness center and the Watkins House Community Center, which will be used for creative workshops, after-school programs, a celebration of Arlington history and culture, and co-working space.
  • $60,000 to Pittsford Village Farm to conduct studies to renovate the farmhouse and surrounding land to provide programming to benefit the community.
  • $30,000 to Highgate to study restoration of the historic Stinehour Hotel into a mixed-use building and develop plans to build a new library. 
  • $30,000 to the Friends of the Vergennes Opera House Inc. for an elevator tower at the Vergennes Opera House building, which also houses City Hall, to make the building compliant with the Americans with Disabilities Act.

Correction: An earlier version of this story misstated the rules about eligibility for affordable apartment in the South Burlington project.

Previously VTDigger's economy reporter.