Governor Phil Scott Announces Launch of Community and Housing Infrastructure Program

Montpelier, Vt- Governor Phil Scott and the Agency of Commerce and Community Development (ACCD) today announced the application portal for the new Community and Housing Infrastructure Program (CHIP) is now open.

CHIP, a statewide tax increment financing (TIF) tool, represents one of the largest investments in municipal infrastructure in Vermont history, with the potential to invest $2 billion between now and 2035. The program is designed to help Vermont communities of all sizes unlock housing opportunities by investing in critical public infrastructure.

"I've talked a lot about the need to revitalize rural areas of Vermont with more housing and better infrastructure," said Governor Phil Scott. "With our aging demographics, shrinking workforce, and fewer kids in our schools, we have to focus on what's driving us in the wrong direction. Along with regulatory reform, including Act 250, the CHIP program will allow smaller, more rural communities to leverage the TIF model for projects in their communities"

CHIP is flexible and allows communities of all sizes the ability to grow their grand lists and meet local needs by investing in wastewater systems, roads, utilities, brownfield remediation, and other essential infrastructure. These investments are often the primary barriers preventing housing projects from getting off the ground.

"CHIP is one of the most transformative and innovative tools Vermont has had in decades," said Secretary of Commerce and Community Development Lindsay Kurrle. "Unlocking infrastructure is a crucial first step in creating more housing and it will have a ripple effect across our economy. In particular, CHIP opens the door for rural and smaller communities across Vermont to access a financing tool that has historically been out of reach and will help create the housing employers need to recruit and retain workers."

CHIP applications will be reviewed by the Vermont Economic Progress Council (VEPC), an independent board that also serves as the approval body for the Vermont Employment Growth Incentive program and Tax Increment Financing program. VEPC receives administrative support from the Department of Economic Development and the Vermont Department of Taxes. There are also three non-voting members for CHIP applications designated by the Department of Housing and Community Development, the Vermont Housing Financing Agency, and the Vermont Housing and Conservation Board.

"Since the Legislature last adjourned, VEPC has been working diligently to make this program available to Vermonters as quickly as possible, and we're proud to have done so in less than eight months. The goal is to make the application process clear, efficient, and accessible for communities of every size," said Jessica Smith Hartleben, Executive Director of VEPC.

Municipalities interested in applying for CHIP must first complete a brief pre-application interest form as the initial step in the application process. Following submission, municipalities may proceed to Step 2, which is the full CHIP application. The pre-application form, full program guidelines, and a recorded webinar series are available on the CHIP webpage . Applications will be accepted on a rolling basis through December 31, 2035.

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