This commentary is by Lets Build Homes board members Maura Collins and Jason Pidgeon. Collins is executive director of the Vermont Housing Finance Agency. Pigeon is VP of mortgage banking and consumer credit at Northfield Saving Bank.
Vermont just took a bold, historic step toward solving one of the most urgent issues facing our state: the lack of affordable and attainable homes for Vermonters of all income levels and backgrounds.
With the passage of the Community Housing Infrastructure Program, or CHIP, during the 2025 legislative session, the state now has a powerful new tool to help communities unlock housing development that has, for too long, remained stuck on paper. As leaders in housing finance and banking, and as board members of Let’s Build Homes, we have a clear message: This is a game changer.
We hear it constantly from nonprofit developers, private builders and community leaders across the state. Even with viable sites, designed thoughtful projects and a waiting list of buyers and tenants the numbers don’t work. Why? Because of infrastructure.
The cost of roads, sewer lines, water systems and stormwater controls can sink a project before the first shovel hits the ground. In many Vermont communities, particularly in smaller or rural towns, the financial burden of building or upgrading this infrastructure is simply too high for developers, or municipalities, to absorb. The math doesn’t pencil out. And when the math doesn’t work, the homes don’t get built.
CHIP fixes that.
The program allows communities to use future property tax revenue generated by new development to finance the upfront cost of the infrastructure those developments need. It’s smart, targeted tax increment financing. It means that towns don’t have to choose between keeping taxes stable and making long-term investments in housing. And it means developers can finally say yes to projects that have been on hold for years.
This isn’t speculative. It’s backed by real projections: up to $200 million a year in CHIP-supported financing, for 10 years, means up to $2 billion in public infrastructure investment statewide. If fully utilized, CHIP could help Vermont build 40,000 new homes in the next decade, assuming an average of $45,000 in infrastructure funds per home. It also has the potential to generate up to $660 million in new Education Fund revenue by 2060, according to the state’s Joint Fiscal Office.
Just as importantly, CHIP is available to every Vermont municipality, no matter its size or zoning structure. Whether it’s a small rural town trying to build homes adjacent to their village or a growing community planning dense infill near its downtown, CHIP levels the playing field and gives every community a path to housing growth.
The passage of CHIP would not have been possible without the leadership and momentum generated by Let’s Build Homes, a brand-new coalition of more than 200 businesses and organizations and over 500 individual Vermonters. The coalition captured the moment, ran with the ball and scored, bringing unprecedented energy and coordination to the effort to make meaningful housing policy a top priority in Montpelier.
We also commend the Legislature and the Scott administration for building CHIP with simplicity in mind. The program’s design is streamlined, and while important decisions still lie ahead in the rulemaking process, the commitment to clarity and access is evident. VHFA, Northfield Savings Bank and lenders across the state stand ready to support communities and developers in navigating this new opportunity.
Let’s be clear: CHIP won’t solve every problem. Zoning reform, workforce challenges, material costs and permitting challenges all remain significant hurdles. But what CHIP does is remove one of the biggest, most immediate roadblocks: infrastructure costs. And that’s a breakthrough.
As housing finance professionals, we know that timing, cost and predictability are everything when it comes to getting projects financed and built. CHIP changes the equation. It helps projects pencil. It helps Vermont build.
To the bill sponsors, legislative leaders, organizational partners and all those who made this moment possible — thank you. Vermont has a proud tradition of tackling big challenges with creativity and resolve. With CHIP, we’ve proven once again that bold solutions are possible when we work together.
