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Community Partnership for Neighborhood Development

The Community Partnership for Neighborhood Development Program is a competitive grant reimbursement program available to Vermont municipalities and non-profit organizations. The Program supports investments in the development of inclusive, smart-growth neighborhoods by funding municipal planning, site control, design, scoping, and surveying for the development of a pilot neighborhood. The Program aims to pair targeted and coordinated investments with planning support to make transformative projects possible. 

Program Objectives 

The Program aims to advance the Governor’s vision to leverage ARPA funding in ways that make lasting and transformative changes in communities by piloting a new approach to coordinated cross-government and cross-organization investment. The Neighborhood Partnership Program aims to demonstrate how targeted and coordinated investments paired with planning support can support the development of homes in inclusive, smart growth neighborhoods.  

The Program aims to fund planning and pre-development work that supports the creation of smart growth neighborhoods that:   

  • serve as a successful model for the acquisition or banking of development-ready land for new neighborhood development or infill development within an existing, developed neighborhood. 
  • serve as a successful model for the integration of planning and implementation processes for water, sewer, and other public utilities and services with land use planning and transportation investments in new or upgraded streets.

For more information, see the Community Partnership for Neighborhood Development Annual Report.

Application Process 

The Community Partnership for Neighborhood Development application is now open. Applications will be accepted on a rolling basis until funds are exhausted and will be reviewed quarterly. Review deadlines: October 27,2023, December 1, 2023, March 1, 2024, May 31, 2024.

Program Funding 

One-time funding is available to award a total of $900,000 in grants. Awards may range between $100,000 and $500,000.  

Eligible Projects 

Funding may be awarded to a municipality or non-profit organization that is proposing the creation of a new neighborhood development or infill development within an existing, developed neighborhood in keeping with the program objectives. While funds must be awarded to a municipality or non-profit organization, we strongly encourage partnerships, including partnerships with for-profit developers. Funds may be awarded to support:  

  • Municipal planning that directly supports project development  

  • Project scoping including market studies  

  • Preliminary financial feasibility analysis/pro forma development 

  • Permit fees (those necessary to apply for financing)  

  • Legal fees 

  • Consultant fees  

  • Site control including appraisal fees  

  • Land surveying 

  • Site assessment, including, but not limited to, traffic and access analysis, natural resource assessment, stormwater and drainage analysis, utility system analysis 

  • Architectural fees for preliminary architectural design work (site and floor plans, elevations, renderings).  

  • Engineering fees, including but not limited to, wastewater or sewer system design, energy supply system design and energy modeling, and sustainability assessments 

  • Costs related to preparation of construction plans and specifications 

  • Community engagement 

Funding shall support projects that lead to the construction of neighborhoods that are:  

  • compact and human-scaled, with a density of at least eight dwelling units per acre, including modestly sized dwellings on small lots; characteristic of Vermont’s smart growth principles, as provided in 24 V.S.A. § 2791; located in close proximity to existing residential, employment, and civic uses; 

  • provide for a mix of housing types, styles, tenure, and sizes to accommodate diverse households of varying composition, age, and income, including not less than 25 percent of the units with perpetual affordability and 35 percent of the homes affordable at 80 percent of the area median income; 

  • provide for a mix of transportation modes with interconnected streets and sidewalks; and be designed in a manner that enhances historic resources, climate readiness, energy efficiency, environmental quality, resident health, and overall livability. 

Program Partners 

The Program represents a cooperative effort between state agencies and external funders to demonstrate how targeted and coordinated investments paired with planning support can support the development of homes in inclusive, smart growth neighborhoods. Partners include the Vermont Department of Housing and Community Development, the Vermont Housing Finance Agency, the Agency of Natural Resources, the Agency of Transportation, the Department of Public Service, the Vermont Bond Bank, the Vermont Economic Development Authority, the Vermont Housing and Conservation Board, the Vermont Association of Planning and Development Agencies, the Vermont League of Cities and Towns, and the Vermont Regional Development Corporations.