In fall 2024, Stephanie Marchetti thrust a shovel into the ground, celebrating the planned start of construction on a new 44-unit apartment complex for homeless veterans. Her nonprofit, the Montachusett Veterans Outreach Center — known as MVOC — had already spent years raising money for the Central Massachusetts project.
Marchetti said there was a compelling need for the effort in the town of Winchendon: The region is a hub for veterans, and yet there isn’t enough affordable housing for them.
“The cost of living around here and everywhere is skyrocketing,” she said. “There is a waitlist of veterans who have housing vouchers but haven’t found somewhere to go, so they’re either couch surfing or in a shelter environment.”
But several months later, the Winchendon project was in serious jeopardy. A climate of instability spurred by federal funding cuts combined with increased prices from new tariffs left Marchetti staring at a $2 million shortfall.
As she scrambled to find new funding, she tried to ignore conspiracy theories swirling on social media from people who didn’t understand the delay. Vets were also fretting about their prospects of finding affordable housing if the apartments weren’t built.
While headlines about the Trump administration’s funding cuts have focused largely on impacts to science, education and social services, the threats to the Winchendon project are a previously unreported example of ways President Donald Trump’s policies have upended community initiatives meant to help vulnerable people.
Fortunately for the veterans center, the Massachusetts Executive Office of Housing and Livable Communities has since said it’s committed to filling remaining funding holes, effectively rescuing the project. Still, Marchetti says she’s disillusioned that a housing initiative meant to help people who’ve made the ultimate sacrifice for the country could face such obstacles.
“I will no longer be shocked by negative decisions that impact our veterans,” Marchetti said. “People shouldn’t get hurt because of decisions made by those who haven’t suffered in these ways.”
Federal funding freezes and tariffs threaten the project
Central Massachusetts is a desirable area for vets, partially because of its proximity to numerous American Legion posts and Veterans Affairs medical centers. MVOC currently provides some vets with housing and treatment for post-traumatic stress disorder and substance abuse — but has desperately needed more capacity. The center’s transitional shelter, multiple group homes and nearly two dozen apartments are all currently full.
“There is a waitlist of veterans who have housing vouchers but haven’t found somewhere to go, so they’re either couch surfing or in a shelter environment.”Stephanie Marchetti, executive director of the Montachusett Veteran’s Outreach Center
The $29 million project in Winchendon was planned to help address the housing shortage by converting two defunct red brick school buildings with boarded up windows into income-restricted apartments. MVOC acquired the property from the town for just $1 because Winchendon was so eager to address the eyesores.
The veterans center then spent five years raising money for the project, cobbling together funds from the U.S. Department of Housing and Urban Development, Massachusetts and private donations and loans.
But Marchetti said the plan hit roadblocks once Trump took office and froze trillions of dollars in federal grants and loans — part of an effort that he described as rooting out waste, fraud and abuse.
She said HUD never pulled back the $5.6 million it had pledged for the project. Still, the nationwide instability with federal funding became a risk for the outreach center’s bank financing the project. It threatened to withdraw its loan as long as the veterans center continued to rely on the HUD funds.
HUD did not immediately respond to a request for comment.
The outreach center was able to secure more state money to replace the federal dollars, and keep the bank’s loan.
But then, another roadblock: Marchetti learned the cost of construction had increased due to tariffs on building materials, and she was $2 million short.
“I had sort of resigned that this project was dead,” she said. “I know I can’t go to the state and ask for $2 million. They just gave me $5.6 million.”
Meanwhile, Marchetti said the project became increasingly controversial on social media as people peddled conspiracy theories about why it was delayed. And each morning she drove up to the center, vets approached her asking for updates, hoping the project would be completed by the time many of them reached their two-year limit living at MVOC’s transitional shelter.
One of the vets, James Massey, even took to X asking Trump to ensure the project secures the money it needs.
“Dear mr. president sir. I am a veteran who wants to tell you about the winchendon veteran project,” he posted, tagging Trump. “This project can help many different military family’s with affordable housing the ground has been broken I know you have the power to make it happen sir.”
The state rescues the project
Marchetti said she negotiated with her contractor and investors to bring costs down somewhat — but she still had a $900,000 gap. State Rep. Jonathan Zlotnik, who represents the Winchendon area, also called up state leaders including Housing Secretary Edward Augustus, asking for help.
“We really pounded the pavement to honestly cash in a lot of favors,” Zlotnik said.
Finally in late June, Marchetti received the message she hoped for: the state’s housing office would fill the gap and rescue the project. A spokesperson for the office explained its reasoning by pointing to Gov. Maura Healey’s pledge to end veteran homelessness.
At a Fourth of July barbecue at the outreach center, vets celebrated the news.
Stephen Wilson, who served as a Marine in the 1980s, relies on MVOC’s services. He said he’s struggled with PTSD and attempted suicide, and the new complex will be a space where vets can support each other.
“It’d be awesome,” Wilson said. “Having veterans all around me — there’s nothing better because when I sit down and talk to another veteran, they know what I’m talking about.”
Marchetti said MVOC will hold a lottery to determine who gets an apartment at the complex once construction’s complete in 2027. She’s grateful state leaders helped save the project, but added she knows better than to celebrate just yet.
“I will be excited,” she said, “when the money is exchanged, the construction trucks are here.”
Produced with assistance from the Public Media Journalists Association Editor Corps funded by the Corporation for Public Broadcasting, a private corporation funded by the American people.
