Bond Bank Launches the Housing Infrastructure Loan Program

Innovative program will lower municipal infrastructure costs to spur housing development

Tuesday, January 13, 2026 (Burlington, VT)  — The Vermont Bond Bank today announced the launch of its Housing Infrastructure Loan Program, a new initiative to support the creation of housing by lowering the cost of expanding municipally owned water, wastewater, and transportation infrastructure. 

This initiative supports projects linked to tax increment finance (TIF), community and housing infrastructure program (CHIP), and other municipal efforts to expand housing in Vermont. The pilot round will be awarded at the end of March 2025, with quarterly applications and awards starting mid-2026.

The Housing Infrastructure Loan Program offers Vermont municipalities loans up to $3.5 million (that can be combined with other Bond Bank programs), with terms up to 30 years and below-market interest rates starting at 2.75% for twenty years. Funds can be used for engineering, construction, and acquisition of water, sewer, and mobility improvements. 

The program was created in partnership with the Department of Housing and Community Development of the State of Vermont. The Bond Bank received $7.5 million under Act 69 of 2025 to create the program. The Bond Bank will leverage this investment to double the program’s capacity while also using repayments in the program for future loans.

Among other criteria, priority will be given to projects that are ready to proceed, closely tied to housing development, and align with local and statewide housing goals. Please visit www.vtbondbank.org/hilp for more information. 

About the Vermont Bond Bank

Created in 1969 as the nation’s first state bond bank, the Bond Bank helps finance and implement crucial municipal infrastructure at lower costs to communities by providing access to more affordable capital. The Bond Bank does this by overcoming gaps in information, scale, and credit to allow cities, towns, villages, school districts, and other forms of government achieve equitable access to capital. 

This market specialization also helps with expertise in recognizing emerging needs like flood relief and managing federal requirements for faster and easier access to capital. In addition to facilities and infrastructure lending, the Bond Bank also provides post disaster bridge loans and is the financial administrator of the State of Vermont Clean and Drinking Water State Revolving Loan Funds.  

Contact: michael@vtbondbank.org

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