Bringing broadband to multifamily housing

VHFA continues to work with the Vermont Agency of Commerce and Community Development on a pilot project that will test several methods of providing low-cost high-speed Internet to tenants.

Updates on the progress of this project will be posted here.

Danger of the "digital divide"

Vermont, by its rural nature, is a state with a large digital divide. This "divide" is between those households with high-speed Internet access available to them versus those without.

Technology is inevitable. A recent report from the Department of Commerce estimates that 95% of new jobs created will require "significant" computer skills. Most middle and upper income homes have one or more computers. By not changing policy, Vermont faces the prospect of a low-income workforce that is not prepared to compete in the 21st century job market.

Digital divide statistics (25 KB; PDF )

VHFA's response

VHFA has partnered with the state's Agency of Commerce and Community Development (ACCD) to analyze the potential for Vermont's subsidized housing network to be an "anchor tenant" of broadband access in communities with limited access. This work supports the Governor's Executive Order on Telecommunications Advancement.

So far, VHFA and ACCD were successful in adding language to the state's overarching housing policy document, the Consolidated Plan, which includes priority for housing projects to include high-speed wiring and encourages low-cost service to be made available to low-income tenants:

Broadband and affordable housing

(From p. 108, Vermont's 2005-2010 HUD Consolidated Plan)
Broadband or high-speed access to the Internet is rapidly becoming an essential tool for both community and economic vitality. In order for the residents of Vermont to have access to the same educational, social and employment opportunities as other parts of the world, broadband access is critical. Unfortunately many low to moderate-income households are unable to access the service, primarily due to cost and availability factors. The State of Vermont will promote Broadband through their housing policy in the following manner:

Require that all new affordable housing units and substantial renovations of existing units will have the appropriate wiring to support high-speed video, voice and data;
Encourage owners and managers of all affordable units to work with broadband providers and tenants to aggregate demand for more affordable services. The Agency of Commerce and Community Development will work with key stakeholders to develop procedures to ensure that these relationships develop; and
Not withstanding the other requirements of the program, Vermont Community Block Development Program grants shall be considered as a tool for planning and implementing broadband infrastructure improvements and broadband accessibility programs where a benefit to primarily (at least 51%) low-to-moderate income persons is clearly demonstrated

Revised design requirements

VHFA has also changed its design requirements for the Low Income Housing Tax Credit Program, and now projects must be wired with coaxial cable and CAT5 wiring to support DSL access.

Also, VHFA encourages developers to wire the cable and CAT5 wiring to one central location where possible, so tenants may be able to enjoy lower cost Internet access because Internet Service Providers may be willing to charge the housing development one fee, as opposed to each household paying separately.