FOR IMMEDIATE RELEASE
February 3, 2025

New Study Examines Feasibility of Implementing a Land Bank in Vermont to Address Challenging Properties
Finds that a Sustainable Funding Source Required for Success

Montpelier, Vt. – The Department of Housing and Community Development (DHCD) is announcing the results of a study required under Act 181 of 2024 that examines the feasibility and opportunities of creating a Land Bank in Vermont to revitalize underutilized properties.  Land Banks are quasi-governmental entities empowered to make vacant, abandoned, deteriorated, and tax delinquent properties productive again.

“We are dedicated to exploring options and trying to find innovative solutions to increase the amount and quality of housing in Vermont,” says Housing and Community Development Commissioner Alex Farrell. “This study is an example of our efforts to learn more about tools being used in other states to understand how they can apply to Vermont.”

In the latest Vermont Housing Needs Assessment, VHFA estimates there are 10,879 vacant and abandoned homes throughout the state, representing 3% of the housing stock. That assessment also determined that Vermont needs to add 24,000 to 36,000 homes by 2029 to meet demand.

Depending on how they are structured, Land Banks can be used to redevelop vacant homes and commercial buildings, create new housing, obtain abandoned agricultural land, acquire and maintain land for conservation, and help stabilize communities after natural disasters like the flooding Vermont saw in 2023 and 2024. Land Banks are not driven by getting the highest price for rehabilitated properties, rather they are focused on the best outcome for the community. Land Banks also have the potential to be a huge help to small, rural communities that lack the capacity to oversee these types of efforts.

“If Vermont adopted a Land Bank model, it could help smaller communities achieve their economic development goals,” says Economic Development Commissioner Joan Goldstein. “Removing blight and replacing it with homes and viable commercial and industrial space where employers can put people to work is an interesting approach to consider.”

In order to be effective, the study found Land Banks need a dedicated, sustainable funding source.

You can read the full 2024 Land Bank Feasibility Report here.