Former Loretto Home to Become Apartments and Transitional Shelter

Cornerstone Housing plans to transform the closed property into 16 apartments and a separate transitional housing facility.

Mar. 30, 2026 at 4:31am

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A former Catholic church property in Rutland, Vermont, the old Loretto Home, has been purchased by Cornerstone Housing for $1 million. The nonprofit plans to convert the building into 16 apartments and a separate transitional housing shelter, with the housing portion already going before the city's Development Review Board.

Why it matters

The project aims to address the need for more housing and transitional shelter options in the Rutland area, as the city grapples with housing affordability and homelessness challenges.

The details

Cornerstone Housing purchased the Loretto Home property off Meadow Street in January 2026 after the facility closed in 2023. The nonprofit's plans call for transforming the building into 16 apartments and a transitional housing shelter, with the two projects following different local zoning rules. The housing portion has already gone before Rutland's Development Review Board, while the transitional shelter will be operated independently.

  • Cornerstone Housing purchased the Loretto Home property for $1 million in January 2026.
  • The Loretto Home facility closed in 2023.
  • The housing portion of the project went before Rutland's Development Review Board earlier this month.
  • A decision from the Development Review Board is expected by May 2026.

The players

Cornerstone Housing

A nonprofit organization that purchased the former Loretto Home property and plans to convert it into 16 apartments and a transitional housing shelter.

Tom Donahue

The mayor of Rutland, Vermont, who stated that the city needs the housing and transitional shelter project.

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What they’re saying

“There is another building two kind of joined that would potentially serve as a transitional shelter model for the future and that would be operated independently of the apartments but there is a great need for it in the area and these things are typically well run.”

— Tom Donahue, Mayor

What’s next

A decision by Rutland's Development Review Board on the housing portion of the project is expected by May 2026.

The takeaway

The transformation of the former Loretto Home property into both affordable apartments and a transitional shelter reflects Rutland's efforts to address its housing and homelessness challenges, providing much-needed housing options and support services for the community.