City of Montpelier photo
Aerial photo of the flooding in the city of Montpelier, June 2023.
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Eager to receive a share of the $67.9 million in match-free disaster recovery grants that Vermont will be handing out to flood-ravaged communities, applicants submitted requests by the Sept. 30 deadline totaling $121 million, almost double the amount of available funds.
The Bridge, an independent central Vermont online news service, reported Oct. 23, 2025, that the state's Community Development Block Grant — Disaster Recovery (CDBG-DR) applicants include cities, towns, planning commissions, nonprofits and private companies, with Barre City applying for $27.5 million, the largest of the requests.
Managed by the state's Agency of Commerce and Community Development (ACCD), the funding program is designed to help Vermont communities recover from a devastating series of floods in July 2023.
Most of the money requested by Barre City would go toward repairs and construction for affordable housing, the types of projects expected to get the bulk of the available grant funding.
The capital city of Montpelier submitted four requests, including two for dam removal, totaling $9.6 million. It did not apply for housing-related projects but plans to request several million dollars for infrastructure improvements related to developing Country Club Road; however, that is contingent on any money left over as well as a second round of funding available this winter, according to The Bridge.
Other local disaster recovery grant applicants included Downstreet Housing, Good Samaritan Haven and at least two private companies: Execusuite LLC, which recently bought the Goddard College campus; and Elliot LLC, which hopes to build affordable apartments near the bottom of Northfield Street in Montpelier.
Most of the funding, totaling $54.3 million, has been designated for Washington County as well as the towns of Johnson and Cambridge, with the rest earmarked for other flood-damaged areas of the state.
State staff members are reviewing the applications and will make recommendations to the Vermont Community Development Board, which meets Nov. 20, according to Nate Formalarie, deputy commissioner of the state's Department of Housing and Community Development.
"The board will make a final recommendation to Secretary of Commerce Lindsay Kurrle, who has the final say," he told The Bridge. "I predict there will be an announcement by mid-December."
Barre Communities, Montpelier Look to Fund Several Projects
Barre City's applications include $10 million to build 48 affordable apartments at 355 North Main St., and $5.4 million for a 91-unit project at Prospect Heights that could include a variety of housing types. The city already has almost $4 million in resources for that project.
Barre also asked for $8 million for Gateway Park, where the funds will be used for a variety of purposes, including elevating some houses and buying out others. In addition, the city requested $2.8 million for a Willey Street bridge upgrade and $856,000 for work on the Harrington Avenue floodplain and debris racks, which Barre already has $1.2 million available.
In addition, its neighboring community, Barre Town, is seeking $2.8 million for the Wildersburg Common ravine bank stabilization; it already has $400,000 for the project.
In Montpelier, city officials asked for $3.5 million to prevent flooding at the city's wastewater treatment plant by elevating Dog River Road, $2.9 million to replace three culverts on Elm Street that failed in the 2023 flood, $2.3 million to remove the Bailey Dam on Main Street, and $917,000 for the removal of the Pioneer Street dam and 5 Home Farm Way mitigation. A total of $2.3 million has already been obtained for that last project.
Downstreet Housing requested three grants for projects in Barre and Montpelier. The firm asked for a little over $2 million for Barre, which would be added to the $16 million already obtained for the developer's 31-unit Steven's Branch mixed-income housing project. The new money would be used to buy two parking lots from the city, according to Nicola Anderson, Downstreet's director of real estate development.
If things go according to plan, construction could begin in the spring of 2026, she said.
The project will feature a mix of studio, one-, two- and three-bedroom apartments designed to meet the diverse needs of the community. With flood mitigation measures incorporated into its construction, the building will provide safe, resilient housing in a central location close to employers, schools and services, The Bridge noted.
Another pair of Downstreet projects in Montpelier are on the application list as well.
One request is for another $300,000 to complete funding for the construction of two energy-efficient duplexes on Heaton Street. The company already has $1.8 million set aside for this project and had hoped to start construction this past summer, but its permits were appealed and the case is now before the Environmental Court, Anderson explained.
The second Montpelier Downstreet project is the conversion of the Washington County Mental Health Services office building on Heaton Street to a structure dedicated to housing. Anderson said that originally this project was aimed at providing "permanent supportive housing" with on-site services, but federal funding for these types of homes has now dried up.
As a result, the project is currently planned to be a mixed-income apartment building similar to other Downstreet properties in Montpelier, she noted. The developer is asking for $5.7 million to go along with $5.9 million in resources it already has for the project.
Another developer, Elliot LLC, has requested $4 million from the Vermont ACCD to build 18 to 28 affordable apartments at the lower end of Northfield Street in Montpelier. The firm's owner, Jacob Walker, bought two acres of vacant land there a couple of months ago, he told The Bridge.
"This location is near bus service and downtown and is out of the flood plain," he said.
If the grant does not come through, Walker still plans to build something, "though it will not be as cost effective," he said.
Many Grant Requests Would Fund Flood Mitigation Efforts
Among the other CDBG-DR applicants:
• Good Samaritan Haven, which supplies shelter to homeless individuals and families, has asked for $3.5 million for "emergency shelter relocation and floodway site restoration" in Barre. It already has $565,000 in resources for the project.
• The town of Plainfield wants $9.7 million for its East Village expansion to go along with $1 million in resources already obtained.
• Execusuite LLC, a Lebanon, N.H., redevelopment company, requested $2.2 million to convert the Plainfield Inn on 15 School St. in Plainfield into 12 apartments; it has already lined up $2.4 million for the project.
• Waterbury is seeking $4.3 million for the Randall Meadow mitigation project.
• Waitsfield has asked for $940,000 for its Carroll Road storm water mitigation project.
• Cabot wants $1.3 million for a flood mitigation project on the Winooski River's North Tributary.
• Hardwick requested $1.5 million for a floodplain restoration project in the town.
• The Central Vermont Regional Planning Commission asked for $2.5 million for emergency communication upgrades for the Capital Region to add to $2.6 million already designated for the work.
In addition to the "implementation" grants listed above, four local applicants asked for planning grants, mostly of smaller sizes: the Central Vermont Regional Planning Commission, Barre City, East Montpelier and Waterbury.
