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Housing and Infrastructure

As Vermont lawmakers tackle the state’s housing and infrastructure challenges, several financing tools are under discussion.  

Tax Increment Financing (TIF) allows municipalities to fund infrastructure improvements by capturing future tax revenue from new development. While supporters say TIF unlocks private investment, critics argue it diverts funds from the education system and benefits only larger municipalities. There’s growing interest in "project-based TIFs", which would allow funding for single projects instead of full districts, making the tool more accessible to smaller towns.  

The Housing Infrastructure Initiative (HIT), proposed by the advocacy group "Let’s Build Homes", focuses on financing infrastructure for housing development. Former Burlington Mayor "Miro Weinberger", now leading the effort, stressed that Vermont’s lack of water and wastewater infrastructure is a significant barrier to housing. HIT would shift the financial burden to developers rather than municipal budgets, aiming to accelerate housing construction.  

The"Strategic Projects for Advancing Rural Communities (SPARC)" proposal mirrors TIF but is tailored for small communities. It would allow towns and developers to use a portion of new property tax revenue to fund housing, flood mitigation, and economic development projects.  

The Senate Economic Development and Housing Committee is also crafting a "housing omnibus bill", blending TIF reforms, brownfield redevelopment funds, permitting changes, and rental policies.