Affordable Housing Grants Will Be Available Soon
by Ellie Russell

At the March 2007 Town Meeting, Charlotte voters approved the creation of an Affordable Housing Trust Fund and approved $40,000 per year for three years to initiate the fund. The purpose of the fund is to encourage and support the creation of perpetually affordable housing units in Charlotte. It is intended, in particular, to encourage a Charlotte property owner to convert or add an affordable unit to an existing building on his or her property. At present there is $80,000 in the fund with another $40,000 to become available during fiscal 2009-2010.
The Affordable Housing Trust Fund Committee members, John Owen (chair), Allan Jordan, Ted Montgomery, Ellie Russell and Carrie Spear, have put together the necessary policies, procedures, application forms and legal documents necessary to manage the fund. Final Selectboard approval is anticipated in the near future.
Grants for feasibility studies or for construction projects (or both) will be awarded to Charlotte residents who propose to create affordable housing units on their property. Feasibility studies allow a property owner to evaluate the feasibility of creating an affordable unit. This may include evaluation of septic or water availability or other similar issues. Grants for feasibility studies will be made for 90 percent of the costs up to $5,000. Grants for construction projects will be made for up to $10,000 per affordable housing unit with a maximum of $30,000 allowed per construction project. A one-to-one match is required for construction grants. Penalties will be levied if the funded units do not remain perpetually affordable.
Priority for funding will be given to proposals that will create rental units that have two bedrooms or fewer in existing buildings. Also considered will be such things as the diversity of total projects in location and size and proposals that offer the most effective use of grant money.
The projected rental for each unit must be affordable for households earning 50 percent or less of the median income for Chittenden County. The latest data show 50 percent of the median income of a three-person household to be $31,715 per year, which calculates to an affordable rental rate of $793 per month. A unit for a household of two persons would be affordable at $704 per month.
The Affordable Housing Trust Fund Committee believes that this program will help meet the needs of Charlotte residents who offer so much value and diversity to our town. These residents include farm workers, service providers, teachers, firefighters, EMTs and many others, including our older residents.
Watch for further information regarding timetables and procedures for applying for an Affordable Housing Trust Fund Grant. Please feel free to contact any member of the committee with questions.