Community and Housing Infrastructure Program (CHIP)

Our Programs Vermont APEX Accelerator Vermont Economic Progress Council (VEPC) Community and Housing Infrastructure Program (CHIP) Tax Increment Financing (TIF) Vermont Employment Growth Incentive (VEGI) VEPC Annual Reports VEPC Meeting Agendas and Minutes VEPC Members Working Groups Housing Community Development Historic Preservation Tourism and Marketing About the Agency Community and Housing Infrastructure Program (CHIP) CHIP Guidelines Guidelines for the program  have been approved by the Vermont Economic Progress Council (VEPC). They outline the criteria and procedures governing the program's housing infrastructure project applications, VEPC review, and related requirements. The Community and Housing Infrastructure Program (CHIP) is a statewide tax increment financing tool designed to help Vermont communities unlock housing opportunities by investing in critical public infrastructure. With CHIP, $2 billion can be invested between now and 2035, one of the largest investments in municipal infrastructure in Vermont history. The program launched on January 30th. The portal link can be found below. What CHIP Does CHIP enables municipalities to finance essential infrastructure (like stormwater systems) that supports new housing development. It allows towns and cities to: Access long-term financing without raising local property taxes Capture a portion of new property tax revenues from future development Invest in public improvements that directly support the creation of homes Why CHIP Matters Infrastructure is one of the biggest barriers to housing development in Vermont. CHIP provides a scalable, municipality-driven solution to this challenge by giving communities the financial tools to: Grow their grand lists Develop the types of housing most needed in their community Support economic growth and workforce needs Help generate an estimated $380 million in new Education Fund revenue over time, without raising taxes How CHIP Works Municipalities apply to the Vermont Economic Progress Council (VEPC) to designate housing development sites. Once approved, towns can retain a portion of new property tax revenue to pay for infrastructure investments for up to 20 years: Not less than 85% of new municipal tax increment Up to 75% of education tax increment for market-rate developments Up to 85% of education tax increment for developments with at least 15% affordable units Both rental and homeownership projects are eligible. Debt may be issued by third-party sponsors. Application Step One: Interest Form The first step of the application process is to complete a brief online form to provide VEPC with a high-level overview of your project. This will help track program interest and anticipate incoming applications. Interest Form Step Two: Application CHIP Application Portal User Guide (PDF) Apply Now – Online Portal Additional Information Webinar Series Delivered in partnership with the Vermont League of Cities and Towns (VLCT): This kick-off session provides the high-level basics of what CHIP is and how municipalities might use this new financing tool to build the infrastructure to support the creation of new housing in their community. This session provides a clear overview of CHIP, including: How the program works and what makes it different from traditional funding tools Eligibility requirements and key guardrails to ensure responsible implementation The timeline and expectations for program launch VLCT’s upcoming 3-year CHIP technical assistance program - “CHIP IN VT” (CHIP Invest in Vermont)