What Developers & Communities Need to Know about CHIP

Vermont has a significant infrastructure financing program that can help unlock housing and development projects across the state. The Community and Housing Infrastructure Program, also known as CHIP, makes up to $2 billion in funding available through 2035 to support infrastructure improvements that enable new housing and economic development.

For developers, municipalities, and project partners facing high upfront infrastructure costs, CHIP may provide a path forward for advancing housing and infrastructure-dependent development projects.

What is CHIP Funding?

The Community and Housing Infrastructure Program is administered by the Vermont Economic Progress Council (VEPC). The program is designed to help communities and developers pay for critical infrastructure by using future increases in property tax revenue generated by new development.

In simple terms, CHIP allows infrastructure costs to be financed now, while repayment is supported over time as the project increases the tax base.

This approach helps remove one of the biggest barriers to development in Vermont, especially for housing projects where infrastructure costs can quickly make a project financially unworkable.

What Can CHIP Funding Be Used For?

CHIP funding is intended to support infrastructure that directly enables housing and related development in Vermont. Eligible infrastructure improvements may include:

  • Water and wastewater systems

  • Roads and transportation improvements

  • Stormwater infrastructure

  • Utilities and site preparation

  • Certain soft costs tied to infrastructure development

Projects must result in new or improved housing, with a focus on primary residences. The program is designed to support both urban and rural communities, making it a valuable tool across the state.

Why CHIP Matters for Your Project

Infrastructure costs are often one of the largest obstacles to moving a project from concept to construction. CHIP funding can help reduce upfront infrastructure expenses, improving overall project feasibility and financing options.

By aligning public infrastructure investment with private development, the program supports housing production and long-term community growth. For projects stalled by infrastructure constraints, CHIP could be the missing piece needed to move forward.

How Bowman Can Help

While CHIP offers significant opportunity, understanding eligibility requirements, project thresholds, and the application process can be complex. Bowman, formerly Trudell Consulting Engineers, helps clients evaluate whether CHIP funding makes sense for their project and how to pursue it effectively.

Our team can assist with:

  • Assessing project eligibility and feasibility

  • Interpreting CHIP program requirements

  • Coordinating with municipalities and stakeholders

  • Supporting infrastructure planning and documentation

If you are considering a development project that depends on new or upgraded infrastructure, we can help determine whether CHIP funding could help move your project forward. Contact us today at 802-879-6331 or use our contact form to discuss how we can help.