Through a myriad of rural housing, community and business 

 programs, Rural Development provides the financing and 

 technical assistance that makes a difference to communities an

their residents. Our customer base is diverse: it is the community that needs to upgrade its 

wastewater system to ensure a healthy local environment and economy; it is the school teacher 

helps shape our children’s future and needs an affordable home; it is the manufacturer hoping to 

expand its business and create 10 more good-paying jobs. 

In fiscal year 2002, Rural Development had the opportunity to invest $57,401,596 in Vermont. 

When your tax dollars are spent through a Rural Development program, each beneficiary must 

demonstrate their commitment to wisely use these federal resources. Through a combination of 

grants, loans and loan guarantees, Rural Development helped low-income residents, non-profit 

organizations, communities and businesses realize dreams and goals which otherwise would no

have been possible. 

Rural America faces numerous challenges, many of which are mirrored and sometimes magnifi

in Vermont’s backyard. Our partnerships between federal, state and non-profit agencies, and 

private sector enterprises, help us stretch our valuable resources and effect change. For the seco

time, Rural Development recognized a ‘Partner of the Year’, an organization which works close

with our agency and staff to make life better wherever we can. This year, Franklin County 

Industrial Development Corporation received the award for their commitment to providing crea

and caring business and community development to the people and communities of Franklin 

County. 

I am proud to share USDA Rural Development’s 2002 Annual Report, highlighting our 

achievements in Vermont’s backyard. 

 Sincerely, 

 

 

 JOLINDA H. LA CLAIR 
even greater use of this program in 2003 now that our one-time mortgage insurance fee has

dropped to 1.5%. This program provides the lowest cost mortgage insurance on the market for

100% no-down-payment financing. We want to thank all of our participating lenders, especiall

Chittenden Bank with $2.9 million in loans, and look forward to their increased use of this prog

in the future. A $70,000 Technical Assistance Grant was made to Rutland West Neighborhood

Housing to expand their Homeownership Education to Addison and Bennington Counties.

Home Repairs: For very low-income homeowners who need essential repairs, access

modification, or weatherization, we offer 1% loans up to $20,000, and can offer grants to elderl

households based on need. This past year we helped 103 households and provided a total of

$497,265 in loans and grants to Vermonters in need; an increase of 40% from 2001. Housing

Preservation Grants totaling $138,500 were also awarded to the City of Montpelier and Gilman

Housing Trust to rehab single family homes in Washington, Caledonia, Orleans and Essex

Counties.

Multi-Family Housing: 1,092 units of the 1,458 unit RD portfolio in Vermont received

project-based rental assistance subsidies totaling $1,995,371. The subsidies ensure that no tena

base of affordable units through our Section 515 Loan Program. In FY 02, we were able to fun

two new projects for a total of $1,600,000 (32 units) in Springfield and Vergennes. As propertie

age, rehabilitation is critical to ensure health and safety for all residents. An additional $923,00

was secured to renovate three existing RD properties.

Moose River Apts.

St. Johnsbury, VT

28 units of substantial

rehabilitation to the old

Town House Terrace

apartment complex.
and emergency response equipment for two communities. Child care also remains an area of

high need. Projects were funded for Champlain Islands Parent/Child Center, a proposed new

24 hour child care facility in Newport and the Greensboro Community Child Care Center.

This new fire department now

provides fire service to the 32

residents of Westmore. Rural

Development provided a $10,87

grant to assist with repairs to 

1979 Mack pumper that was dona

to them by Nashua, NH as well a

$12,000 Community Facility

Economic Impact Grant to purch

15 sets of protective gear to me

OSHA and NFPA safety requireme

RD salutes the newly formed

Westmore Fireman’s Association 

exemplifying community spirit a

action.

The Alburg Volunteer Fire Department undertook a major building expansion and included

much needed space for the town clerk's offices. This innovative partnership between a

community and a non-profit was inspired by our local Rural Development Specialist. We

provided a $914,400 direct loan and $50,000 grant for the project which will begin construction

in the spring of 2003.

Recreation continues to be a niche for our guaranteed program where we provided a loan

guarantee to Community National Bank to fund a portion of the cost to develop the "Ice

Center of Washington West". The Ice Center will include an ice skating rink, a concession

stand and a rental shop and will serve the towns of Warren, Waitsfield, Fayston, Moretown,

Duxbury and Waterbury.
y y, 

upgrades in Springfield, Bradford, Lyndon, Sheldon and water improvements in Orleans,

Springfield and Cavendish.

Solid Waste Management Grants: The Central Vermont and Windham Solid Waste

Management Districts and Northeast Recycling Council, a multi-state recycling organization

located in Brattleboro, received a total of $162,000 in grants to support their technical assistanc

programs.

Distance Learning/Telemedicine: Two workshops were held early in the year to encou

Vermont applications in this nationally competitive program. We are pleased that the Visiting

Nurse Alliance of VT/NH received a $400,000 grant to support their point of care and telemedi

equipment, software and training.

A visiting nurse checks the blood pressure ofa

special client. The $400,000 USDA Rural

Development telemedicine grant will help with 

purchase of technology and telemedicine equipm

that will reduce time needed to complete

paperwork, minimize travel time and costs, and

increase access to patient vital statistics on a da

basis.

Technical Assistance: Rural Development funding provides free on-site operational assist

and training for rural water and wastewater systems through the Northeast Rural Water Associa

(NeRWA). During 2002, NeRWA assisted 138 water and wastewater systems in Vermont with

679 assistance visits. Rural Development also provides funding support to the Rural Communi

Assistance Program (RCAP). RCAP provides support to existing and potential water/wastewat

systems with project development issues such as forming Fire Districts, public education and

income surveys. In 2002 the RCAP staff assisted 12 Vermont communities.
EmD

pm(DED) 

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D

pm

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to our program successes in Fiscal Year 2002. VEDA's participation program works in

conjunction with our loan guarantee to provide below market rates to qualified businesses.

Franklin County Industrial Development Corporation and the Springfield Regional Developmen

Corporation were instrumental in the development of projects for Vermont Precision Tools of

Swanton and Vermont Machine Tool of Springfield respectively. The DED has added Rural

Development to their "resource team" to assist existing and potential Vermont businesses. Than

you lenders and partners for helping this program work for Vermont businesses!

Employees of Vermont Machine Tool in

Springfield with the first two machines

manufactured as a result of their

acquisition of the former Bryant Grinder

Corporation. A Rural Development

Business & Industry Loan Guarantee

helped finance this business venture.

Grants: Our Rural Business Enterprise and Opportunity Grant Programs awarded $559,95

eleven organizations and communities. The Northeast Kingdom Rural Economic Area

Partnership (REAP) Zone received technical assistance grants to study telecommunications

capacity, develop infrastructure to attract work-at-home companies, assist former employees of

Ethan Allen to develop their own wood products business and expand the road and utilities in

the Hardwick Industrial Park. Technical assistance grants to bolster the state's farm income we

also provided to the Vermont Maple Sugar Makers' Association, the VT Department of

Agriculture and the Vermont Fresh Network.

Vermont Public Television received $400,000 to produce additional programs for the popular

"Outdoor Journal" series and a documentary on the history of the Connecticut River.
Development of a training curriculum for Northeast Kingdom

businesses;

• Established a web site (www.abenaki.com) to market Abenaki

businesses (see left);

• Developed the 2002 Annual Vermont Fresh Catalog to market

fresh agricultural products to chefs and restaurants and to

develop a more streamlined format for delivery.

Passage of the Farm Bill provided new opportunities in the form of Value-Added Market

Development Grants. Three Vermont agricultural producers were selected to receive a total of

$380,469. These grants will support market expansion for Cabot Cheese and Vermont Quality

Meats and investigate the feasibility of selling Merino wool and maple products to tourists at th

Adams Petting Farm in Wilmington.

Intermediary Relending Program: The Intermediary Relending Program (IRP) provid

wholesale, low-cost capital to community based revolving loan funds which in turn relend the

funds to small businesses for expansion. Since its inception in 1988, the Vermont IRP program

has closed 374 loans for $22.9 million, leveraged $100.3 million of private capital and impacted

4,975 jobs. During Fiscal Year 2002, five active intermediary organizations closed 22 loans for

a total of $855,389 that saved or created 186 jobs in 7 Vermont counties.

Three loans were made by the Vermont Community Loan Fund and Gilman Housing Trust

partnership to help private landlords in the Northeast Kingdom. The loans upgraded 19 units o

rental housing in the Kingdom. In addition, $345,000 of IRP capital was provided to the Rutlan

Economic Development Corporation, one of our most active intermediaries, to recapitalize thei

revolving loan fund.

In all of our business programs, we continue to seek ways to enhance the development of

value-added agricultural and wood products that will keep our agricultural and natural resource

based economies viable.
gp g

America. USDA’s Rural Development programs are also creating

new opportunities. In 2002, for example, economic grants and loa

provided by USDA helped create or protect more than 150,000 ru

jobs.

As we embark upon a new year, we have a strong agenda and many opportunities to strengthen

America’s rural communities. The Administration will continue to build upon the principles

outlined in our policy publication, “Food and Agricultural Policy: Taking Stock for the New

Century”. Our team at USDA will continue working with all interested parties and build new

coalitions to help families, create jobs and invest in America’s rural sectors.

RD Staff Cares

Staff from USDA Rural

Development and the Central

Vermont Homeownership Cent

gathered at the home of Mr. a

Mrs. Peter Das to help paint t

garage and plant trees. The D

family received a Rural

Development home loan which

enabled them to purchase a fu

accessible home after Mr. Das

lost his leg in a work accident
created, home ownership has increased and families and businesses

have been strengthened. New investments and entrepreneurial spirit

will continue to grow, bringing increased opportunity to rural areas.

From fire hydrants to fiber optic cable -- from sewers to symphonies --

USDA Rural Development financial and technical assistance is making a positive difference.

In total, over $12 billion was invested through USDA Rural Development programs in rural

America in Fiscal Year 2002.

We have accomplished much in fiscal year 2002. However, to meet ongoing and future

challenges, USDA Rural Development will focus in 2003 on four critical areas of economic

opportunity:

• Housing - Rural Development has created a Five Star commitment to improving single-fam

housing lending to rural minority families as part of the President’s minority homeownership

initiative.

• Broadband - Rural Development will implement approximately $1 billion in Broadband

programs.

• Bio-Mass - Rural Development will assist in the development of alternative energy

combustibles to replace petroleum-based products through value-added grants and business a

industry loan guarantees.

• Equity Capital - The Farm Bill provides $44 million in operational assistance grants and $2

million in debenture guarantees for the Rural Business Investment Program (RBIP). The RBI

will increase the amount of capital available for investment in rural businesses and will provid

technical assistance to these businesses.

Through our collective hard work we will continue to increase the economic opportunities in ru

communities and improve the quality of life for all rural Americans.
In 2002 we also partnered with the State of Vermont in their Successful Communities initiative

which identified the Northeast Kingdom and Springfield as areas of high need for community

and economic development. This partnership lead to our increased involvement in the

Springfield water and wastewater projects and our investment in Vermont Machine Tool's

acquisition of the former Bryant Grinder assets.

During 2002, our Rural Development Specialists worked with local communities in their

respective regions. Some of their activities include:

• Board development training, marketing and budgeting counseling to a non-profit child care

facility in southern Vermont;

• Intensive assistance with a community-wide visioning forum in Alburg;

• Organizational assistance, board development and membership recruitment for the Farm

Labor Service Cooperative;

• Support to the Economic Development Committee in Troy/Jay;

• Assistance with planning for a 2nd and 3rd shift childcare facility in the Brattleboro region.

Our Homeownership Specialists continue the dual mission of providing Homebuyer Education

and Rural Development loans to needy low-income buyers. Our partnership with the six

Homeownership Centers couldn't be stronger. We welcome the addition of the new center in

St. Albans which opened in January of 2002 and look forward to working closely with the staff

We are also pleased that Lake Champlain Housing Development Corporation (LCHDC) was

successful in the first round of funding for a new self-help construction program. LCHDC will

develop approximately 15 single family homes with participating low-income families. Eligibl

families will build their own homes with loans provided by Rural Development. Technical

assistance and supervision will be provided by LCHDC. The program is projected to begin the

fall of 2003.
robert.mcdonald@vt.usda.gov 

Rutland, VT Office 

170 South Main Street at Trolley Square 

Rutland, VT 05701

802-775-8957 802-773-4177 (fax)

Rutland, Addison & Bennington Counties 

Michael R. Dolce, Rural Development Specialist

michael.dolce@vt.usda.gov

Randy Shiflett, Homeownership Specialist 

randy.shiflett@vt.usda.gov

St. Albans, VT Office

27 Fisher Pond Road, Suite 8

St. Albans, VT 05478

802-524-6503 802-524-4575 (fax)

Franklin, Chittenden, Lamoille & Grand Isle 

Counties 

Connie F. Burns, Rural Development Specialist

connie.burns@vt.usda.gov

Franklin, Chittenden, & Grand Isle, Counties 

Rita L. Weisburgh, Homeownership Specialist

rita.weisburgh@vt.usda.gov

St. Johnsbury, VT Office

1153 Main Street, Suite 3

St. Johnsbury, VT 05819-2734

802-748-8746 802-748-1621 (fax)

Calendonia, Essex & Orleans Counties 

Steven F. Campbell, Homeownership Specialist

steven.campbell@vt.usda.gov

rhonda.shippee@vt.usda.gov 

Brattleboro, VT Office 

28 Vernon Street, Suite 3 

Brattleboro, VT 05301

802-257-7878 802-254-3307 (fax)

Orange, Windham & Windsor Counties 

Jon-Michael Muise, Rural Development Specialist 

jon-michael.muise@vt.usda.gov

Windham & Windsor Counties 

Deborah J. Boyd, Homeownership Specialist 

deborah.boyd@vt.usda.gov 

Montpelier, VT Office 

City Center, 3rd Floor, 89 Main Street

Montpelier, VT 05602 

802-828-6000 802-828-6037 (fax)

Washington, Orleans, Essex, & Caledonia Counties 

Sherry L. Paige, Rural Development Specialist

sherry.paige@vt.usda.gov

Washington, Orange & Lamoille Counties 

Cheryl A. Ducharme, Homeownership Specialist

cheryl.ducharme@vt.usda.gov

Rural Development is an Equal Opportunity lender, provider and employer. Federal law prohibits 

discrimination. Complaints of discrimination may be filed with the USDA Director, Office of Civil 

Rights, Washington, DC 20250-9410. 
$57,401,596 Invested In Vermont