“Housing is a major wealth-building asset,” says Matthew Cropp, board treasurer of the Vermont Real Estate Cooperative (VREC). It’s an asset, he’s quick to note, that’s unattainable for far too many Vermonters. VREC is working to change that.
For those unable to secure financing for a home, renting has been the only other option. But renting prohibits tenants from building equity and wealth, and can lead to instability “when tenants face sudden rent increases, or displacement if their rental is sold,” Matt stresses. “They have no control.”
“The Vermont Real Estate Cooperative offers a middle path,” he says enthusiastically.
A member-owned and -controlled real estate cooperative, VREC was established in 2019 as an alternative mode of homeownership. “The Coop ownership splits the difference between renter and homeownership,” Matt says. VREC allows Vermonters to pool resources cooperatively to purchase ‘naturally occurring’ (i.e. pre-existing) affordable properties, both residential and commercial.
Any Vermont resident can become a member by purchasing VREC shares, priced at $1,000 each. There is a limit as to how many shares a single shareholder can buy, and each shareholder gets only one vote in purchasing, selling and other decisions regardless of how many shares they own. In years where there is a surplus, shareholders may receive a dividend.
With Vermont still struggling through a long-standing affordable housing shortage, VREC provides a unique and effective solution. Vermont’s dedicated network of regional affordable housing developers typically focus on building and preserving larger, multi-unit properties. “And of course that’s extremely important,” Matt says. “But a lot of our existing affordable stock is in smaller properties, with five or even fewer units. VREC doesn’t want to lose affordable homes in those many smaller properties,” he explains. “We seek them out.”
They also seek out private sales, where sellers have been willing to negotiate costs to aid in VREC’s mission. That’s precisely what happened with VREC’s recent purchase of a three-unit property in Winooski.
Two of the multi-family home’s units were 4-bedroom, and one was 3-bedroom. “In other words, it was ideal for families, which is where there’s great need,” Matt points out. Two of the tenant families received state subsidy to help them cover rental costs. “If this property had sold on the open market, the tenants would have been priced out.” The system, Matt says, encourages landlords’ pushing prices upwards and out of reach of many.
But in this case, two things happened: the seller, it turned out, had grown up in state-subsidized household himself. Concerned that an outside buyer might increase rents and displace the tenants, he wanted to sell to VREC. And VREC wanted to work with the Vermont Community Loan Fund.
“The Loan Fund’s work and reputation in affordable housing was well-known to us,” Matt says, noting the two organizations’ mission alignment and dedication to preserving homes for lower-wealth Vermonters.
He appreciated that the Loan Fund’s flexibility on a tight timeline helped move the sale through without a hitch. “Without the Loan Fund, the process would have been a lot more complicated, and longer. There would have been a lot more pieces of the puzzle for us to pull together.”
There’s even more good news! While the Coop’s purchase of the property means that three families won’t lose their homes, VREC has also hired one of the tenants to serve as on-site manager.
“The Loan Fund fills a number of gaps in Vermont,” Matthew says. “They provide creative solutions, flexibility and an important resource for capacity building. That’s where real impact becomes possible.”
In the 4th quarter of 2023, VCLF financing was also provided to:
CRO Planning & Design, Burlington
This start-up planning and design consultancy provides clients such as municipalities, counties, regions, state agencies, federal land managers and nonprofits with services including outdoor space planning & design, permitting, conservation & environmental planning, public lands project development and more. Their VCLF TRAILS loan helped finance equipment, hiring and other expenses associated with starting up operations. The loan preserves one job and creates one new job. croplanning.com
DandyLion Designs, Hinesburg
Owner Ashley Farland launched her luxury line of pillows, baskets and other home décor accessories, emphasizing quality, sustainability and Vermont-made products. With her brand gaining traction in several high-end markets, she came to the Loan Fund to help finance a new bricks-and-mortar show room. The loan creates one new job. dandylion.design
Davey Gourmet, Morrisville
After successfully selling his gourmet French pastries and charcuterie at Vermont farmers’ markets, classically-trained chef David Davey and his wife, Sheena Davey, a food industry executive, came to VCLF to help finance their new restaurant. Their SPROUT loan preserves two jobs and creates six new ones. instagram.com/daveygourmetfarm/?hl=en
Ever Green Designs, Pawlet
An established landscaping and masonry business, Ever Green Designs had been hiring trucking and delivery services for all of its hauling and deliveries. In 2023, owner Erick Rene Navarrete Hernandez came to VCLF for a Justice Forward Fund loan to finance the purchase of his own crew-cab dump truck. The loan preserves one year-round job and multiple seasonal jobs.
Grandma Theresa’s House, South Burlington
Years after emigrating from the Democratic Republic of Congo and making Vermont his home, Zia Gbau determined to open an events space and business focused on multicultural gatherings and events like celebrations, conferences, weddings and concerts. He used a VCLF loan to cover equipment purchases, improvements to his leased space and other start-up related expenses. The loan creates four jobs.
Green Valley Taxi, Colchester
New American Ali Al Hamdani has owned and operated Green Valley Taxi since 2019, transporting clients to and from Central and Northern Vermont locations. He approached VCLF for a Justice Forward Fund loan to purchase a second vehicle for his business, doubling the business’ capacity. The loan preserves one job and creates one new job. greenvalley-taxi.com/
Inspired Minds Childcare, West Haven
After successfully launching the 4-STARS-rated Inspired Minds Child Care in Essex - with initial financing from VCLF- owner Ashely Norton was ready to expand services with a second location in Rutland County’s West Haven. She came back to the Loan Fund to finance property improvements to the new space, purchase furniture, fencing, supplies and cover operating expenses. The loan creates 59 early care & learning enrollments and 12 new jobs.
Milton Mobile Home Cooperative, Milton
When the Milton Mobile Home Park was purchased by its residents in 2012 and reorganized as a real estate cooperative, the resident-owners knew that their water and septic systems would soon need replacing. More recently, electrical systems have also deteriorated. With grant funding partially secured and awarded, the Cooperative approached VCLF for a short-term loan to bridge oncoming construction costs to future grant support. The loan preserves affordable homes for 100 Vermont families. miltonmh.coop
NU Chocolat, Burlington
Fine chocolatier and longtime Loan Fund borrower NU Chocolat’s sales are heavily seasonal, with roughly 25% of annual sales occurring during the fourth quarter holiday season. Rather than continue to rely on high-interest-rate credit cards to cover inventory and other expenses, they returned to VCLF requesting a line of credit. The loan preserves nine jobs and creates three new ones. nuchocolat.com
Paine’s Christmas Trees, Morrisville
A multigenerational Christmas tree farm on Vermont’s historic Route 100, Paine’s Christmas Trees has been a Vermont tradition for decades and a VCLF borrower since 2009. When the farm‘s mortgage matured in 2023, creating the probability of significantly higher interest rates and prohibitive monthly payments, owner Tom Paine turned to VCLF for help locking in a reasonable rate. The loan preserves two jobs and 72 acres of Vermont’s working landscape. facebook.com/PainesChristmasTrees
Stone’s Throw Pizza, Jericho
Stone’s Throw Pizza opened its first restaurant in Fairfax in 2018, using VCLF financing. Over the years, they’ve grown steadily, opening additional locations in Charlotte, Richmond and Waterbury. When they closed their Charlotte restaurant in 2023 due to wastewater issues at their leased space, they determined to open another location in Jericho. They used this most recent VCLF loan to cover buildout costs and equipment for the new location. The loan preserves 32 jobs and creates six new jobs. stonesthrowpizzavt.com
“Housing is a major wealth-building asset,” says Matthew Cropp, board treasurer of the Vermont Real Estate Cooperative (VREC). It’s an asset, he’s quick to note, that’s unattainable for far too many Vermonters. VREC is working to change that.
For those unable to secure financing for a home, renting has been the only other option. But renting prohibits tenants from building equity and wealth, and can lead to instability “when tenants face sudden rent increases, or displacement if their rental is sold,” Matt stresses. “They have no control.”
“The Vermont Real Estate Cooperative offers a middle path,” he says enthusiastically.
A member-owned and -controlled real estate cooperative, VREC was established in 2019 as an alternative mode of homeownership. “The Coop ownership splits the difference between renter and homeownership,” Matt says. VREC allows Vermonters to pool resources cooperatively to purchase ‘naturally occurring’ (i.e. pre-existing) affordable properties, both residential and commercial.
Any Vermont resident can become a member by purchasing VREC shares, priced at $1,000 each. There is a limit as to how many shares a single shareholder can buy, and each shareholder gets only one vote in purchasing, selling and other decisions regardless of how many shares they own. In years where there is a surplus, shareholders may receive a dividend.
With Vermont still struggling through a long-standing affordable housing shortage, VREC provides a unique and effective solution. Vermont’s dedicated network of regional affordable housing developers typically focus on building and preserving larger, multi-unit properties. “And of course that’s extremely important,” Matt says. “But a lot of our existing affordable stock is in smaller properties, with five or even fewer units. VREC doesn’t want to lose affordable homes in those many smaller properties,” he explains. “We seek them out.”
They also seek out private sales, where sellers have been willing to negotiate costs to aid in VREC’s mission. That’s precisely what happened with VREC’s recent purchase of a three-unit property in Winooski.
Two of the multi-family home’s units were 4-bedroom, and one was 3-bedroom. “In other words, it was ideal for families, which is where there’s great need,” Matt points out. Two of the tenant families received state subsidy to help them cover rental costs. “If this property had sold on the open market, the tenants would have been priced out.” The system, Matt says, encourages landlords’ pushing prices upwards and out of reach of many.
But in this case, two things happened: the seller, it turned out, had grown up in state-subsidized household himself. Concerned that an outside buyer might increase rents and displace the tenants, he wanted to sell to VREC. And VREC wanted to work with the Vermont Community Loan Fund.
“The Loan Fund’s work and reputation in affordable housing was well-known to us,” Matt says, noting the two organizations’ mission alignment and dedication to preserving homes for lower-wealth Vermonters.
He appreciated that the Loan Fund’s flexibility on a tight timeline helped move the sale through without a hitch. “Without the Loan Fund, the process would have been a lot more complicated, and longer. There would have been a lot more pieces of the puzzle for us to pull together.”
There’s even more good news! While the Coop’s purchase of the property means that three families won’t lose their homes, VREC has also hired one of the tenants to serve as on-site manager.
“The Loan Fund fills a number of gaps in Vermont,” Matthew says. “They provide creative solutions, flexibility and an important resource for capacity building. That’s where real impact becomes possible.”
In the 4th quarter of 2023, VCLF financing was also provided to:
CRO Planning & Design, Burlington
This start-up planning and design consultancy provides clients such as municipalities, counties, regions, state agencies, federal land managers and nonprofits with services including outdoor space planning & design, permitting, conservation & environmental planning, public lands project development and more. Their VCLF TRAILS loan helped finance equipment, hiring and other expenses associated with starting up operations. The loan preserves one job and creates one new job. croplanning.com
DandyLion Designs, Hinesburg
Owner Ashley Farland launched her luxury line of pillows, baskets and other home décor accessories, emphasizing quality, sustainability and Vermont-made products. With her brand gaining traction in several high-end markets, she came to the Loan Fund to help finance a new bricks-and-mortar show room. The loan creates one new job. dandylion.design
Davey Gourmet, Morrisville
After successfully selling his gourmet French pastries and charcuterie at Vermont farmers’ markets, classically-trained chef David Davey and his wife, Sheena Davey, a food industry executive, came to VCLF to help finance their new restaurant. Their SPROUT loan preserves two jobs and creates six new ones. instagram.com/daveygourmetfarm/?hl=en
Ever Green Designs, Pawlet
An established landscaping and masonry business, Ever Green Designs had been hiring trucking and delivery services for all of its hauling and deliveries. In 2023, owner Erick Rene Navarrete Hernandez came to VCLF for a Justice Forward Fund loan to finance the purchase of his own crew-cab dump truck. The loan preserves one year-round job and multiple seasonal jobs.
Grandma Theresa’s House, South Burlington
Years after emigrating from the Democratic Republic of Congo and making Vermont his home, Zia Gbau determined to open an events space and business focused on multicultural gatherings and events like celebrations, conferences, weddings and concerts. He used a VCLF loan to cover equipment purchases, improvements to his leased space and other start-up related expenses. The loan creates four jobs.
Green Valley Taxi, Colchester
New American Ali Al Hamdani has owned and operated Green Valley Taxi since 2019, transporting clients to and from Central and Northern Vermont locations. He approached VCLF for a Justice Forward Fund loan to purchase a second vehicle for his business, doubling the business’ capacity. The loan preserves one job and creates one new job. greenvalley-taxi.com/
Inspired Minds Childcare, West Haven
After successfully launching the 4-STARS-rated Inspired Minds Child Care in Essex - with initial financing from VCLF- owner Ashely Norton was ready to expand services with a second location in Rutland County’s West Haven. She came back to the Loan Fund to finance property improvements to the new space, purchase furniture, fencing, supplies and cover operating expenses. The loan creates 59 early care & learning enrollments and 12 new jobs.
Milton Mobile Home Cooperative, Milton
When the Milton Mobile Home Park was purchased by its residents in 2012 and reorganized as a real estate cooperative, the resident-owners knew that their water and septic systems would soon need replacing. More recently, electrical systems have also deteriorated. With grant funding partially secured and awarded, the Cooperative approached VCLF for a short-term loan to bridge oncoming construction costs to future grant support. The loan preserves affordable homes for 100 Vermont families. miltonmh.coop
NU Chocolat, Burlington
Fine chocolatier and longtime Loan Fund borrower NU Chocolat’s sales are heavily seasonal, with roughly 25% of annual sales occurring during the fourth quarter holiday season. Rather than continue to rely on high-interest-rate credit cards to cover inventory and other expenses, they returned to VCLF requesting a line of credit. The loan preserves nine jobs and creates three new ones. nuchocolat.com
Paine’s Christmas Trees, Morrisville
A multigenerational Christmas tree farm on Vermont’s historic Route 100, Paine’s Christmas Trees has been a Vermont tradition for decades and a VCLF borrower since 2009. When the farm‘s mortgage matured in 2023, creating the probability of significantly higher interest rates and prohibitive monthly payments, owner Tom Paine turned to VCLF for help locking in a reasonable rate. The loan preserves two jobs and 72 acres of Vermont’s working landscape. facebook.com/PainesChristmasTrees
Stone’s Throw Pizza, Jericho
Stone’s Throw Pizza opened its first restaurant in Fairfax in 2018, using VCLF financing. Over the years, they’ve grown steadily, opening additional locations in Charlotte, Richmond and Waterbury. When they closed their Charlotte restaurant in 2023 due to wastewater issues at their leased space, they determined to open another location in Jericho. They used this most recent VCLF loan to cover buildout costs and equipment for the new location. The loan preserves 32 jobs and creates six new jobs. stonesthrowpizzavt.com