Montpelier, VT - Governor Phil Scott and the Agency of Commerce and Community Development (ACCD) today announced the opening of the application process for $67,845,000 in Community Development Block Grant – Disaster Recovery (CDBG-DR) funding in response to the July 2023 floods. These funds will benefit communities most impacted in regions designated by the U.S. Department of Housing and Urban Development (HUD) in consultation with state officials. Designated Most Impacted and Distressed (MID) areas include Lamoille, Washington, Caledonia, Orleans, Rutland, Windham, and Windsor counties.

“The July 2023 storms were devastating for many communities across Vermont,” said Governor Phil Scott. “These grants will help ease the financial burden for much needed infrastructure and new housing so we can continue to strengthen our long-term resilience.”

CDBG-DR was part of the American Relief Act 2025, passed by Congress in December of 2024. The program is funded through HUD and administered by the Vermont Community Development Program at ACCD. A majority of funding will be focused on creating new housing units outside of flood plains and supporting infrastructure in the identified regions. A portion of the funding is also available to restore existing infrastructure, and to support mitigation projects that create future resilience. Seventy percent of CDBG funds must primarily benefit low- and moderate-income households. No local match is required.

The State of Vermont developed its CDBG-DR Action Plan through a public process this spring and the final plan was approved by HUD this week. DHCD is currently receiving and reviewing pre-applications and anticipates opening the full application by late August, with full applications due by September 30, with the goal of the first round of awards announced by the end of 2025.

More information, instructions, guidelines and guidance on how to apply can be found on the CDBG - Disaster Recovery Webpage.