Forfeited Rutland Drug Houses to Become Family Homes

Crack and heroin once flooded the halls of 114, 116, and 117 Park Avenue in Rutland, Vermont—until federal authorities stepped in. The properties, long-serving as distribution hubs for hard drugs, have been forfeited under a federal forfeiture lawsuit brought by the United States Attorney’s Office. The government proved the rental units were used to facilitate felony drug offenses and that the owners, including Ericob Vermont Realty Corp, failed to take reasonable steps to stop the criminal activity—ignoring their legal duty to report and evict.

Under 21 U.S.C. § 881(a)(7), the feds seized the blighted buildings after a protracted legal battle. Instead of auctioning them off or leaving them to decay, an unprecedented coalition forged a deal to transform the eyesores into safe, owner-occupied housing. The agreement unites the U.S. government, the City of Rutland, the mortgagee, and Neighbor Works of Western Vermont (NWWVT)—a nonprofit with a mission to revive communities through responsible redevelopment.

Under the settlement’s chain of transfers, the properties were forfeited to the United States, then handed to the U.S. Marshals Service (USMS). The USMS transferred them to the City of Rutland, which wiped out $0 in back taxes, fines, and fees—clearing the title. The city then deeded the homes to NWWVT with a strict condition: they must be renovated and sold only as owner-occupied single-family homes, duplexes, or condos. No rentals. No absentee landlords. Ever.

NWWVT agreed to pay $82,500, minus USMS costs, to the mortgage holder to extinguish liens. The USMS capped its own costs at $5,000—and spent just $750. That freed up capital to pour into rehabilitation. The nonprofit plans full restorations, preserving the historic character while making the homes livable for families who’ve been priced out of Rutland’s shrinking owner-occupied market.

U.S. Attorney Eric Miller called the deal a ‘Win-Win-Win’—cops crushed a drug node, the city reclaims a poisoned block, and NWWVT expands affordable housing. ‘This isn’t just demolition and denial,’ Miller said. ‘It’s redemption. These houses will echo with laughter, not whispers of deals.’

Ludy Biddle, Executive Director of NWWVT, said the vision is simple: ‘We’re turning trauma into trust. These beautiful historic houses will host family dinners, Halloween nights, bike rides by the creek—not paranoia and police tape.’ The northwest Rutland neighborhood, where only 32% of homes were owner-occupied in 2014, just gained three new anchors of stability. The drugs are gone. The future is moving in.

RELATED: Forfeiture of Park Ave Drug Houses in Rutland Finalized