CDFI Advance Fuels Affordable Housing Solutions Across Vermont Communities
As a mission-driven, community-focused lender, Vermont Community Loan Fund is always searching for ways to make a lasting change in communities throughout the state.
So, when leaders from Mascoma Bank’s community development division approached them about partnering to use FHLBank Boston’s CDFI Advance, they were eager to learn more.
Mascoma Bank leaders reached out because they understood Vermont’s shortage of affordable housing is slowing economic growth by making it harder for local businesses to attract and retain employees.
Capital is sorely needed for acquisition, construction, and permanent financing for desperately needed housing initiatives.
Mascoma Bank’s community development arm, a wholly owned subsidiary known as Mascoma Community Development, had previously supported Vermont Community Loan Fund through grants related to its New Markets Tax Credit activities, recognizing the fund’s strong track record of directing capital to critical affordable housing initiatives.
The CDFI Advance is a great program. It helped us deepen our relationships with CDFIs like the Vermont Community Loan Fund, and we hope it continues because it fills a vital need that is only continuing to grow because of all the headwinds facing developers of affordable housing.
The CDFI Advance, established by FHLBank Boston in 2024 to strengthen partnerships between financial institutions and non-depository certified Community Development Financial Institutions (CDFIs), is a 0% interest-rate loan available to member financial institutions for supporting affordable housing development, job creation, small business growth, and the expansion of community facilities in distressed New England communities.
“The CDFI Advance is a great program. It helped us deepen our relationships with CDFIs like the Vermont Community Loan Fund, and we hope it continues because it fills a vital need that is only continuing to grow because of all the headwinds facing developers of affordable housing,” said Ryan Bishop, senior vice president, managing director of Mascoma Community Development.
“It’s getting harder and harder to see these types of affordable housing projects get to the finish line so any additional support can make a difference,” Bishop added.
Mascoma Bank was awarded a total of $2 million in CDFI Advances in 2025, which the Vermont Community Loan Fund was able to quickly deploy to four affordable housing initiatives.
“Mascoma Bank has been an incredible partner over the last decade,” said Will Belongia, executive director of the Vermont Community Loan Fund.
Vermont Community Loan Fund made $30 million in loans in 2024 and 2025, with a large focus on financing nonprofit affordable housing developers, according to Belongia.
Historically, Vermont Community Loan Fund’s typical loan volume has been half that amount.
“The growth in our lending has been driven by affordable housing development,” he said.
Using CDFI Advance funding, Vermont Community Loan Fund provided low-cost loans totaling $1.5 million to two resident-owned mobile home parks – Breezy Acres and Hillcrest in Colchester and North Avenue Cooperative in Burlington – to make wastewater improvements.
Both communities offer highly affordable housing options. At Breezy Acres and Hillcrest, for example, 87% of the 223 homes are for residents earning below 80% of the area median income, while at North Avenue mobile home park, 94% of the 119 homes are for households earning below 80% area median income.
The remaining funds awarded in 2025 were used to help refinance the debt of a 21-unit development built in 2010 by the Brattleboro Housing Authority for residents earning between 30% and 80% of the area median income and for construction financing to renovate an old vacant property in Brandford to create four units for individuals transitioning from homelessness.
In 2026, FHLBank Boston awarded another $500,000 to Mascoma Bank which once again partnered with Vermont Community Loan Fund, this time to assist Addison Housing Works with the acquisition and preservation of Valley View Apartments, a 24-unit complex for low-income seniors in Vergennes.
“We’ve had incredible loan demand over the past three years, and we needed this flexible capital,” said Belongia, explaining that the flexible terms and low rates provided more opportunities for the revolving loan fund to have a positive impact in Vermont communities.
Brattleboro Housing
Part of the CDFI Advance funding awarded to Mascoma Bank was used to refinance the debt of a 21-unit affordable housing development for tenants earning between 30% and 80% of the area median income in Brattleboro. (Photo courtesy of Brattleboro Housing Authority)
Valley View Apartments
Vermont Community Loan Fund once again partnered with Mascoma Bank in 2026 to receive a $500,000 CDFI Advance to preserve Valley View Apartments, a 24-unit complex for low-income seniors in Vergennes, Vermont. (Photo courtesy of Addison Housing Works)
