Waterbury Housing Improvement Program

The Waterbury Housing Improvement Program is a local grant initiative established by the Town of Waterbury, Vermont, to support the development of accessory dwelling units (ADUs) by residential property owners. The program is administered in partnership with Downstreet Housing and Community Development, a regional nonprofit housing organization. Funding for the program is derived from the Town’s Housing Trust Fund, which was created to expand the availability of affordable rental housing within the community. The Trust Fund is supported in part by local tax revenues and is intended to increase the town’s rental housing stock by one percent annually over an eight-year period. The primary purpose of this grant program is to incentivize homeowners to create additional rental units either within their existing homes or as detached structures on their property. These accessory dwelling units must comply with local zoning and safety regulations and are intended to provide long-term affordable housing options for residents. The program emphasizes community-driven housing development and seeks to address local housing shortages by enabling property owners to contribute directly to expanding rental supply. Eligible applicants are property owners within the Town of Waterbury who are current on property taxes and mortgage obligations. The property must serve as the owner’s primary residence, and the proposed ADU must meet state and local housing codes, including the Vermont Rental Housing Health Code and applicable life safety standards. In addition, recipients are required to rent the completed unit at or below 110 percent of HUD Fair Market Rent for a minimum period of five years. Tenant eligibility is also restricted, requiring that household income not exceed 100 percent of the Area Median Income for individuals over the age of eighteen. The grant provides funding of up to 30,000 dollars per unit, with a requirement that applicants contribute a minimum of 20 percent of the project cost as a matching investment prior to the first disbursement. Matching contributions may include in-kind support or deferred contributions, subject to approval by the program administrator. Funds are disbursed based on project progress and compliance with approved scopes of work, and projects must be completed within 18 months of the grant agreement, including obtaining a certificate of occupancy. Applicants are required to submit a comprehensive application package that includes documentation such as proof of insurance, tax records, a detailed scope of work and budget, lease agreements, and evidence of matching funds. The application is reviewed by Downstreet Housing, which also provides technical assistance, conducts site visits, verifies compliance with permitting requirements, and monitors project progress through inspections. The organization is responsible for ensuring that all program requirements are met prior to final disbursement. The application period for this program is open until April 30, 2026, or until all available funding is allocated. Interested applicants were encouraged to submit materials directly to Downstreet Housing via mail or email. Program inquiries could be directed to a designated staff contact at Downstreet Housing. While the program operates under a broader housing initiative that may continue in future cycles, the availability of funding and application timelines depend on annual allocations to the Housing Trust Fund and program administration decisions.