by VDC staff

Most of a $68 million state and federal grant package announced yesterday will help flood-stricken communities build housing outside of flood-prone areas.

Governor Phil Scott and the Vermont Agency of Commerce and Community Development (ACCD) Wednesday announced the opening of the application process for $67,845,000 in Community Development Block Grant – Disaster Recovery (CDBG-DR) funding. The funds aim to assist communities most severely impacted by the catastrophic flooding in July 2023.

The federal funding, secured through the American Relief Act of 2025 and administered by the U.S. Department of Housing and Urban Development (HUD), will be directed to regions designated as Most Impacted and Distressed (MID) in consultation with state officials. These regions include Lamoille, Washington, Caledonia, Orleans, Rutland, Windham, and Windsor counties.

The Vermont Community Development Program at ACCD is overseeing the administration of the CDBG-DR funds, with a strong emphasis on creating new housing units outside of flood-prone areas and reinforcing supporting infrastructure. Additional funding is also available to restore damaged infrastructure and to fund mitigation projects that reduce future disaster risks.

In accordance with federal requirements, at least 70 percent of CDBG-DR funds must benefit low- and moderate-income households. Notably, no local matching funds are required to access this aid.

Vermont’s CDBG-DR Action Plan was developed through a public process earlier this year and received final approval from HUD this week. ACCD is currently accepting pre-applications. The full application process is expected to open by late August, with applications due by September 30. The state anticipates announcing the first round of awards by the end of 2025.

Detailed information on eligibility, application instructions, and program guidelines is available on the CDBG – Disaster Recovery webpage.