MONTPELIER, Vt. (AP) — The state of Vermont is planning to spend about $37 million to help build or renovate between 550 and 650 affordable homes in the state.

The money to rehabilitate or construct housing for low- and moderate-income Vermonters was raised by the Vermont Housing Finance Agency through the sale of sustainability bonds.

The proceeds from the sale of the bonds will be awarded by the Vermont Housing Conservation Board. The homes will be built across the state over the next two to three years.

Republican Gov. Phil Scott says the initiative is an important step toward building more decent, affordable housing, which is needed to attract more families to the state.