The State of Vermont is one of the biggest housing developers in the state. Seven state departments qualify as housing developers, and the University of Vermont is a housing developer. Seven public housing authorities also qualify as housing developers. Add to the list the seven homeownership organizations that are housing developers, and then there are the housing trusts that are also housing developers.
Rounding out the list of government and government-affiliated housing developers is the massive roster of non-governmental organizations and nonprofits that qualify as housing developers, partnering with federal and state authorities to spend public funds to develop housing.
With this well-funded and well-connected housing development infrastructure, it’s hard to believe that the ribbon cuttings are so few and far between.
Against this backdrop of housing developers, a pro-housing advocacy group named Let’s Build Homes has entered the housing arena, sounding the alarm and claiming that Vermont needs to double housing production to create the 30,000 housing units it needs by the end of the decade.
Let’s Build Homes is a broad-based coalition of well-heeled members banging an old beat on an old drum. The press conference last week was well covered, and the press release was echoed by any publication worth its ink, supported by editorials of how wonderful it is to have such a synchronized focus on the development of housing, complete with a plan to advocate for more significant support and the removal of unnecessary obstacles. It was almost as if a press release of the state of affairs was news, the coalition was newsworthy, and the remedies were innovative.
Let’s Build Homes is helmed by Miro Weinberger, the former mayor of Burlington and a housing developer in his own right.
Vermont Public quoted Miro Weinberger as saying, “The Vermont Housing Finance Agency is currently serving as the fiscal agent for the group as it forms; the intent is to ultimately create an independent, nonprofit advocacy organization.”
“Let’s Build Homes has raised $40,000 in pledges so far,” he added, from “some of the large employers in the state and philanthropists.” Weinberger made a point to note that “none of the money that this organization is going to raise is coming from developers.”
This is the Wilco Tango Foxtrot moment for me. Does Weinberger not know where housing comes from?
Or could it be that he subscribes to the caste system of developers? Are there legit government-supported altruistic developers and citizen developers, capitalistic creators of wealth by building housing for a profit?
The irony here is that mom-and-pop developers, the citizen developers, are responsible for 80% of the affordable housing stock in the state of Vermont and yet only receive 20% of the financial support.
Citizen developers are pulling permits at a rate of 4 to 1 over the well-heeled NGOs [non-governmental organizations] and nonprofits, producing housing at a quarter of the cost, and yet…no invitation to the party! One would think that if Let’s Build Homes were serious about building homes, they would look to those who are doing it and ask, “How can we help?”
Currently, there is a 9-unit housing development in St. Johnsbury that costs $5 million. It was developed by a well-respected nonprofit and relies on public funds, demonstrating that it’s still possible to turn gold into straw.
How can the state of Vermont turn its collective eye on the lack of financial stewardship that is sucking the air out of the room and disrupting the market?
Last year, I developed 8 units of affordable housing for formerly homeless veterans, all at a tenth of the cost of the St. Johnsbury development.
Last month, I cut the ribbon on a four-unit project, developed at a total cost of $222k, while the local 24-unit housing developed by a nonprofit will cost $333k per unit.
An interesting but telling incident with the four-unit ribbon cutting was my invitation to one of our federal representatives. The response was that there would be no attendance because the elected official had no money in the project. From my perspective, in the midst of a loudly proclaimed housing crisis, any ribbon cutting would be an occasion to celebrate, even if the elected official had no money in the game. In fact, there is even more reason to celebrate! But I digress.
Here are my recommendations for Let’s Build Homes:
Embrace those who are getting it done, the citizen developers
Stop banging the Act 250, TIF, and Tax Incentives drum and ask the citizen developers what they want and need and how you can help
Open up the umbrella, make some room, and remove the great divide between those in control and those who are getting it done
Look for the low-hanging fruit, the immediate gains that create the momentum
The Vermont Housing Finance Agency, the source of the data that fuels the Let’s Build Homes agenda, also released the Rutland Region Housing Needs Assessment report, commissioned by the Rutland Region Planning Commission and completed by the Vermont Housing Finance Agency. The report indicates that there are 2,413 vacant homes in Rutland County. What would it take to get these properties back online? What would it take to get property owners back into the mix?
Granted, this is more challenging work than spending $300k per unit to build new, but it’s fast and furious and has the potential to yield immediate results.
As for Weinberger’s distaste for donations from developers, perhaps he will join the Partners in Housing at our upcoming meeting on the last Friday of January to see if we can find some common ground in our collective pursuit of safe and healthy housing for all Vermonters.
Stephen Box is a “Houser” in Rutland County, developing, renovating, and managing residential properties. Email: VermontHouser@gmail.com.
