STATE TREASURER PIECIAK, BANK OF BENNINGTON LAUNCH $2.5 MILLION “BUILDING UP BENNINGTON COUNTY” HOUSING INITIATIVE

BENNINGTON, Vt. NewsWK — In a direct response to a tightening housing crisis gripping southern Vermont, State Treasurer Mike Pieciak and executives from the Bank of Bennington gathered on March 16, 2026, to formally announce the launch of a new $2.5 million public-private financing partnership. Dubbed the “Building Up Bennington County” program, the initiative is designed to jumpstart the construction of much-needed middle-class and working-class housing by injecting low-cost capital directly into the local homebuilding pipeline.

The program arrives at a critical juncture for the region. According to recent regional economic data, Bennington County is projected to face a shortfall of over 1,000 new housing units over the next six years if current construction paces remain unchanged. The shortage has driven up home prices and rent, leaving working families, young professionals, and municipal workers struggling to find affordable places to live within the communities where they work.

Incentivizing Local Developers

Unlike traditional state housing grants that flow directly into subsidized public housing projects, the “Building Up Bennington County” initiative specifically targets the “missing middle.” The $2.5 million fund will act as a revolving credit facility, offering heavily discounted, low-cost loans to private homebuilders, contractors, and local developers.

By lowering the cost of construction financing—which has risen significantly alongside national interest rates over the last few years—the state and the Bank of Bennington aim to make the development of modest single-family homes, duplexes, and multi-unit townhomes financially viable for builders.

“We hear from local contractors all the time that the math simply doesn’t work to build modest, workforce housing anymore because the upfront borrowing costs are too high,” State Treasurer Mike Pieciak said during the press conference. “By partnering with the Bank of Bennington, we are stepping in to lower those barriers. If we reduce the cost of capital for the builder, we pass those savings on to the buyer, making homeownership an achievable dream again for working Vermonters.”

Addressing a 1,000-Unit Shortage

The programmatic focus on working-class housing is a direct answer to the regional housing assessment numbers highlighted by state officials. To sustain local workforce growth and keep pace with retirement and population trends, Bennington County must add more than 160 units annually through 2032.

The Bank of Bennington, a prominent local mutual bank rooted in the community, will manage the loan administration and underwrite the projects. Bank representatives emphasized that local knowledge will help expedite approvals, getting shovels in the ground faster on underutilized parcels of land throughout the county.

“As a community bank, we see the impact of the housing inventory drought every single day,” a spokesperson for the Bank of Bennington noted. “Our businesses can’t find workers because the workers can’t find homes. The ‘Building Up Bennington County’ program is a tailored, localized engine to break that logjam.”

Eligibility and Next Steps

The program guidelines dictate that developments funding under this partnership must be geared toward “workforce pricing levels,” ensuring the completed units target buyers making near or slightly above the area median income—households that typically earn too much to qualify for low-income assistance but are locked out of the luxury real estate market.

Loan applications for local homebuilders and general contractors are expected to open within the coming weeks. Local town officials across Bennington County have expressed early optimism, noting that the credit facility aligns cleanly with local municipal efforts to update zoning laws and promote denser, village-style residential development.