These funding opportunities help make housing development more achievable at the local level. Municipal officials and staff can use these programs — from grants that cover planning and zoning updates to technical assistance for infrastructure improvements that unlock new housing sites - to support their efforts to enable housing development. By starting with accessible, step‑by‑step initiatives, communities can tap into resources that not only ease the burden of complex development tasks but also build confidence in navigating the housing process.
| Municipal Action | Supporting Grant Program | How It Helps |
|---|---|---|
| Understand the state of housing in your community | Municipal Planning Grant (MPG) | Funds housing needs assessments, village and growth center planning, and community engagement |
| Community Development Block Grant (CDBG) | Funds housing needs assessments, village and growth center planning, and community engagement | |
| Build community buy-in to housing action | Municipal Planning Grant (MPG) | Funds community engagement, including education programs to help homeowners and developers learn about housing programs |
| AmeriCorps (multiple Vermont programs) | Funds ~50% of the cost of a year-long volunteer to deliver affordable housing | |
| Build a capital program | Funding Opportunities for Capital Planning | VLCT | Funds full capital program development or activities related to transportation, water, wastewater, and stormwater infrastructure |
| Adopt or update a municipal plan | Municipal Planning Grant (MPG) | Funds new municipal plans or plan updates, especially when focused on housing |
| Apply for a State Designation | Municipal Planning Grant (MPG) | Funds consultant assistance for application development and community engagement |
| Adopt or update zoning | Municipal Planning Grant (MPG) | Funds zoning bylaw revisions, streamlining local permitting, and community engagement |
| Provide land incentives or acquire or prepare land for housing development | Municipal Planning Grant (MPG) | Funds special studies for housing planning, feasibility analysis, marketing studies, and land banking |
| Community Development Block Grant (CDBG) | Funds site acquisition, environmental review, and predevelopment costs. | |
| Create a Housing Trust Fund | Community Development Block Grant (CDBG) | May fund a housing revolving loan fund. |
| Invest in water, sewer, and road infrastructure to unlock housing sites | Vermont Housing and Conservation Program Rural Economic Development Initiative | Funds consultant services to help municipalities write grants or complete a necessary project development step |
| Community and Housing Infrastructure Program (CHIP) | Provides financing for infrastructure tied directly to housing development | |
| Grants and Funding by Topic | VLCT | Click a specific topic to see funding sources for that topic. Ex. Drinking water, EV charging infrastructure, trails/paths/sidewalks, etc. | |
| Grants & Funding Chat Recordings and Resources | VLCT | Webinars describing funding opportunities for wastewater and transportation name specific funding programs | |
| Partner with developers to support affordable housing projects | Community Development Block Grant (CDBG) | Funds nonprofit housing projects. Be the grant applicant and subgrant the award. |
| Vermont Housing and Conservation Board (VHCB) | Funds pre-development and feasibility work and construction for nonprofit and municipal housing projects. Funds private and non-profit rental housing development. | |
| Funds assessment and remediation of brownfield properties | ||
| Conduct housing feasibility studies or market analysis | Municipal Planning Grant (MPG) | Supports data-driven planning to identify housing opportunities and barriers |
| Community Development Block Grant (CDBG) Planning Grants | Supports data-driven planning to identify housing opportunities and barriers | |
| Streamline permitting and development processes | Municipal Planning Grant (MPG) | Funds planning work to implement the municipal plan, including streamlining efforts |
| Regional Planning Commission technical assistance | Offers guidance and resources to help municipalities align internal processes | |
| Write and administer grants | Increasing Municipal Capacity for Grants | VLCT | Provides options to increase municipal capacity for identifying grant opportunities, writing grants, and managing grants and projects |
Publication Date
12/05/2025