On March 30, 2020 the Federal CARES Act was signed to provide states with some relief to aid during the COVID-19 pandemic.  The State of Vermont received $6,288,440 in Community Development Block Grant  (CDBG-CV1 and CDBG-CV2) funds through the U.S. Department of Housing and Urban Development Federal CARES Act which is administered by the Agency of Commerce and Community Development, Department of Housing and Community Development - Vermont Community Development Program. 70% of the CDBG-CV funding is required to serve low- and moderate-income persons.  For more information about how the funding will be used review the CARES Act 2nd Amendment for 2019 Action Plan  

On September 11, 2020 the state recieved notice from HUD of an additional $2,591,853 of CDBG-CV3 funding available to the state bringing the total allocation of CDBG-CV funds to $8,880,293. The DHCD is currently accepting comments on the October 2, 2020 Draft CARES Act 3rd Amendment for 2019 Action Plan, comments must be recieved by October 16, 2020 no later than 4:30 p.m. at DHCD, 1 National Life Drive, Montpelier, VT 05620-0501, ATTN: Cindy Blondin or email comments at .  The DRAFT CARES Act 3rd Amendment for 2019 Action Plan indicates how the State intends on utilizing the funding.  

Currently VCDP will use CDBG-CV funds to assist sole proprietor businesses, municipal public facilities and service programs and low- and moderate-income tenants with rental assistance payments throughout the state of Vermont (except those located in the City of Burlington) through the following programs:

  • Sole Proprietor Stabilization Program
  • Municipal Public Facility and Service Program
  • Rental Assistance Program

PLEASE NOTE:  The Federal Register allowed the state flexibility to assist entitlements with the their CDBG-CV funding.  The City of Burlington is the states only entitlement community that receives direct funding from HUD. Please contact Community Economic Development Office (CEDO) if you are located in the City for potential assistance.  The City of Burlington is eligble for the following:

  1. CDBG-CV Round 1: The City of Burlington recieved their own allocation and is not eligible for state funding in that round.
  2. CDBG-CV Round 2: The City of Burlington did not receive any CDBG-CV2 funding the City of Burlington’s businesses will be eligible to participate in this round of state CDBG-CV2 funding for the Sole Proprietor Stabilization Program.
  3. CDBG-CV Round 3: The City of Burlington did recieve funding, but the state proposes to set aside up to $400,000 for the City to apply to the Municipal Public Facility and Service Program.

Sole Proprietor Stabilization Program

The Sole Proprietor Stabilization Program ($1.7 million) is a grant program designed to assist sole proprietors with no employees that have been impacted by COVID-19 that have remaining unmet needs that can be documented. The State of Vermont has partnered with Brattleboro Development Credit Corporation and Two Rivers Ottauquechee Regional Planning Commission to administer the Sole Proprietor Stabilization Program throughout the state.

Brattleboro Development Credit Corporation (BDCC) will be managing applications from Sole Proprietors in the following the counties: Addison, Bennington, Rutland, Washington, Windham, and Lamoille.

Two Rivers Ottauquechee Regional Commission (TRORC) will be managing applications from Sole Proprietors in the following the counties: Caledonia, Chittenden, Essex, Franklin, Grand Isle, Orange, Orleans, and Windsor.

This program will provide grants of $5,000, $7,500 or $10,000 to qualifying sole proprietors through a Lottery draw. Funds may be only be used for working capital to cover business costs, such as rent, utilities, and for retrofitting to meet COVID-19 requirements to re-open and remain open.

Where and How Do I apply

The Grant Application will be submitted via a web-based application portal, to apply click here. Each Business will be required to provide a duplication of benefit affidavit to document unmet need.

Municipal Public Facility and Service Program

The Municipal Public Facility and Service Program (nearly $2.7 million) is designed to assist communities and non-profits with grants for public facility and service projects that have unmet needs due to COVID19. Projects requesting funding for activities that construct temporary or permanent solutions to structures for meeting COVID19 code requirements are considered public facilities. Projects requesting funding to assist activities that are for new or expanded services to meet COVID19 requirements are considered public services (such as addressing physical health needs of the residents in the community for social distancing and food shelves or meals on wheels for supplies, and materials necessary to continue to carry-out their public service). It will be on a first come first serve basis and will be through a competitive application process. Public service projects serving 70% low- and moderate-income individuals is a priority which may require surveying the population served unless the project serves a population in an area-wide low- and moderate-income community.

This program will provide grants that range from $5,000 to $200,000.

Where and How Do I apply

Municipalities will submit a VCDP 2020 Implementation Grant application through the GEARS system. This application is currently available. Municipalities and non-profits will be required to provide a duplication of benefit affidavit to document unmet needs. VCDP staff will review applications submitted and will make recommendations for project funding to the Vermont Community Development Board at their regularly scheduled board meetings scheduled for November 5, 2020, April 1, 2021, and June 10, 2021 or until all funding has been awarded.

Frequently Asked Questions on Municipal Public Facility and Service Program

Rental Assistance Program

The Rental Assistance Program ($1.5 Million) is designed to assist tenants at 80% and below median income with rental assistance payments directly to their landlord that have been impacted by the COVID19. The State of Vermont has partnered with the four homeownership centers in the state to administer this program: Champlain Housing Trust, NeighborWorks of Western Vermont, RuralEdge and Windham & Windsor Housing Trust.

This program will provide grants up to $3,000 per household, $1,000 a month (no more than 6 months).

Where and How Do I apply – (Not Available Yet)

Tenants will apply to their local homeownership center. Each tenant will be required to provide a duplication of benefit affidavit to document unmet need.

This program will be deployed after the State CARES Act Rental Assistance Program managed by the Vermont State Housing Authority has been depleted, or after December 30, 2020 whichever is sooner.

Contact Us

Cindy Blondin, Grants Specialist

One National Life Drive
Deane C. Davis Building, 6th Floor
Montpelier, VT 05620-0501

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