Governor Phil Scott and the Agency of Commerce and Community Development (ACCD) last week announced the second round of Community Development Block Grant – Disaster Recovery (CDBG-DR) grant awards totaling $10,218,236. 

The funding is in response to the July 2023 floods that devastated communities throughout the state and will benefit those most impacted in regions designated by the U.S. Department of Housing and Urban Development (HUD) in consultation with state officials. The designated Most Impacted and Distressed (MID) areas include Washington and Lamoille counties.

“This funding helps to create new housing, which we desperately need, in areas safe from future flooding,” said Governor Scott. “This isn’t always easy to do, but the work communities are doing to replace homes that were lost in the damaging floods over the last three years is a critical part of our recovery efforts.”

The awards will fund new affordable housing projects in the City of Montpelier and the Town of Plainfield:

• Infrastructure Extension to Country Club Road: $5,000,000

Proposed by the City of Montpelier, these funds will install critical infrastructure in support of housing construction on the Country Club Road property. The city is considering proposals that could build more than 200 units, including two-dozen for affordable to low- and moderate-income (LMI) homebuyers for at least 20 years.

• East Village Expansion: $5,218,236

Proposed by the Plainfield Community Development Corporation, this project will install critical infrastructure on a parcel adjacent to the village center, resulting in 20 new housing units. 14 will be made affordable to LMI homebuyers for at least 20 years.

These awards follow the December, 2025 CDBG-DR round 1 announcement of nearly $50 million in grants to Vermont communities. Of the original $67.8 million awarded to the state by HUD, $4.2 million in grant funds remain. The state will open a third round of CDBG-DR applications this summer. Details and dates for the third round will be announced later this spring.

Remaining funds are available to private developers, non-profit housing organizations, and municipalities for projects that generate new, resilient housing units. Apply and learn more at CDBG – Disaster Recovery Webpage.