Heritage Family Credit Union ($773.4M, Rutland, VT) has teamed up with the City of Rutland and the Vermont Treasurer’s Office to increase affordable housing in the community.
Heritage Family kicked off its Roofs Over Rutland initiative in October 2024 with an $8 million investment the state made available to the credit union at the low rate of 1%. In turn, Heritage Family is lending that money back out via programs that range from construction and renovation loans to HELOCs and business lines of credit.
“We’ve had pretty exciting results with nearly $6 million in requests thus far,” says Chris Gomez, CEO of Heritage Family. “We’re optimistic in another month or so we’ll have our first ribbon cutting where we’re taking an offline house online.”
A Shared Goal
As with many parts of the United States, Vermont faces a worsening housing crisis. In Rutland, the state’s third-largest population center, fewer than 1,000 new housing units have been built since 2000. Additionally, many existing homes have outdated systems that require costly repairs. The housing situation has put a strain on the local economy and even prevented local employers from filling positions.
Roofs Over Rutland aims to tackle all that by providing benefits for everyone: the credit union, area officials, employers, and residents themselves.
Gomez attributes much of the program’s success to the relationships he built with legislators after becoming CEO in 2023. He joined the board of commissioners for the Vermont Housing Finance Agency in April 2024 at the request of Governor Phil Scott. That’s where he got to know Mike Pieciak, state treasurer for Vermont.
“It’s exciting to see an energetic elected leader at such a high level really listen to constituents each and every day,” Gomez says of Pieciak. “It isn’t about politics. It truly is about addressing the need for housing and thinking creatively about how to do so.”
Likewise, the willingness of Gomez and the team at Heritage Family to consider fresh solutions makes the credit union an ideal candidate for a state government partnership.
“How do we take tasks that are normally solved by the private market or politicians and use our not-for-profit status to reinvest and take risks?” Gomez asks. “What can we control? Well, we can offer affordable rates and take on this task of bringing units online.”
From Funding To Family Housing
Heritage Family has earmarked $3 million of the state’s $8 million investment for housing projects with one to four units; $5 million is earmarked for larger developments. It also has divided its work under Roofs Over Rutland into two initiatives. Initiative 1 includes a business line of credit, a business term loan, and a residential home equity loan in amounts up to $150,000. Initiative 2 includes a renovation loan designed to bring previously unoccupied rental units back to market and a construction loan for ground-up new properties.
“We’re doing all of this in our commercial lending arm, so it’s not as complex as a residential mortgage,” Gomez says.
CU QUICK FACTS
HERITAGE FAMILY CREDIT UNION
HQ: Rutland, VT
ASSETS: $773.4M
MEMBERS: 50,741
BRANCHES: 11
EMPLOYEES: 186
NET WORTH RATIO: 11.4%
ROA: 0.90%
To apply for a Roofs Under Rutland loan, a homeowner or developer must submit an initial request to the City of Rutland, which reviews the request to ensure the property meets location guidelines. After that, borrowers begin a loan application with HFCU. The credit union reviews applications on a first come, first served basis, and its mortgage and business services teams work with applicants throughout the process to gather documentation and provide guidance.
When it comes to making the loan, the credit union passes on the state’s low rate to borrowers. It pays the state 1% in interest for that $8 million investment and determined the cost to cover the work of holding the loans is 2.5%. So what does it charge members? 3.5%.
“The state has loaned us these funds on the backs of Vermonters,” Gomez says. “We are not looking to make money on that. That’s the privilege of being not-for-profit.”
For Gomez and his team, they’ll consider Roofs Over Rutland a success when there is nothing left.
“We want to get that $8 million out the door,” the CEO says. “That directly correlates to total units served.”
As of early January, the credit union had approved 57 units for a total of $5.37 million.
The Credit Union Difference
Gomez says it’s essential for credit unions to leverage what sets them apart from other financial institutions.
“We are not-for-profit with a beautiful tax exempt status that we care for and want to sustain,” he says. “The way to do that is to do things that are better for the community and not necessarily for the bottom line.”
After funding “sells out” and the credit union puts that $8 million to good use, Gomez says he hopes to continue working with state officials to expand the Roofs Over Rutland idea to other municipalities in both Vermont and surrounding states.
“We’ve always liked to punch above our weight class,” Gomez says. “Taking on large tasks has always been part of our ethos. Even though we’re $800 million in assets, we’re doing some things multibillion dollar organizations have the balance sheet to do.”
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