Rutland City acquires $8 million housing investment

By Adam Davis

Housing continues to be an unmet need in most areas of Vermont, and local and state governments are taking measures to resolve the issue. 

State Treasurer Mike Pieciak, Rutland City Mayor Michael Doenges, and Heritage Family Credit Union CEO Chris Gomez came together on Oct. 16 to announce an $8 million investment program to begin building new housing within the city. The Roofs over Rutland program is a partnership between the state, the City of Rutland, and Heritage Family Credit Union to make the $8 million investment available to developers as low-interest loans through Heritage Family. The treasurer’s “10% in Vermont” program supports the initiative, which looks to add over 1,100 new homes across the state within its $55.5 million budget. The program allows Treasurer Pieciak to invest up to 10% of the state’s daily cash balance for further economic development in Vermont. 

“This investment will bring new jobs and housing to Rutland, growing the local economy and strengthening our state,” said Treasurer Pieciak. “The impact will be huge. It will mean that our $8 million investment will leverage millions and millions of more private investment to come into the City of Rutland and build even more housing. It will mean hundreds of new housing units built in the city. The impact is immeasurable in some ways, but we know that it will be dramatic.” 

Rutland Regional Medical Center’s president and CEO Judith Fox also spoke at the event to further illustrate Rutland’s urgent need to house potential employees looking to relocate to the area. 

“Currently, Rutland Regional Medical Center needs to fill 125 open positions. We’ve continued to focus our efforts on developing and retaining our staff and attracting and recruiting new talent. But our employees need a place to live,” said Fox. “When we talk to new recruits, they want to work for RRMC, and they appreciate all that our hospital and our local region have to offer. This program will help to expand market-rate housing in Rutland City and will create affordable options for individuals and families that want to work and live in this community.” 

The Roofs over Rutland program will help to realize Mayor Doenges’ five-year plan of building 1,000 new housing units within the city. Funding will provide support for both developers and homeowners, as loans of up to $175,000 will be available at a 3.5% interest rate, with $3 million reserved for developments of one to four units and $5 million reserved for developments of five units or more. These funds may also be used to support the redevelopment of previously inhabitable homes. 

“We’ve started down the path of not only trying to spur development in Rutland but also to light a fire under it to the point where we see the benefits of our investment,” said Mayor Doengess. “This is one of the best things to happen for housing in Rutland, and I’m excited for the city’s future.” 

According to a Vermont’s Department of Housing and Community Development report, the state will need to add 24,000 to 36,000 additional homes by 2029 to meet growing demand and help stem the tide of rising home costs, which increased 38% between 2019 and 2023.