The Housing Bill under consideration in the Senate Economic Development Committee introduces a comprehensive strategy to expand housing access and infrastructure in Vermont through financial assistance programs, regulatory reforms, and project-based Tax Increment Financing (TIF). Key provisions include:
This proposed legislation focuses on housing and housing development in Vermont. It includes multiple initiatives aimed at improving rental housing, manufactured homes, infrastructure, housing finance, and protections for renters. Below is a summary of the key provisions:
Vermont Rental Housing Improvement Program (VRHIP)
— Expands the program to provide grants and forgivable loans for rental housing improvements.
— Offers up to $70,000 per unit for rehabilitating accessible units and $50,000 per unit for other eligible rental units, with additional funds for meeting accessibility standards.
— Requires landlords receiving grants or forgivable loans to lease to priority groups
— Allows landlords to convert grants into forgivable loans, with 10% forgiven per year of participation.
— Creates a Revolving Fund to sustain the program.
Manufactured Home Improvement and Repair Program (MHIR)
— Establishes a program to support manufactured homeowners and mobile home park owners with up to $20,000 for small-scale capital improvements and up to $15,000 for new foundations, slabs, and utility connections.
— Creates a new fund administered by the Vermont Bond Bank to provide low-interest loans for expanding water, sewer, and public infrastructure to support housing development.
— Eligibility requires projects to directly support new housing development and demonstrate long-term municipal commitment.
— The fund operates as a revolving fund to ensure continued investment.
VHFA First-Generation Homebuyer and Down Payment Assistance Programs
Expands tax credits for down payment assistance:
— $250,000 per year for first-time homebuyers who are also first-generation homebuyers.
— Additional funding for manufactured home purchases and replacements.
— Defines first-generation homebuyers as those whose parents never owned a home or lost a home due to foreclosure.
State Housing and Residential Services Planning Committee
Creates a committee to develop a housing plan for individuals with developmental disabilities, with a goal of 600 new units of service-supported housing.
— Identifies funding needs and policy barriers.
— Positive Rental Payment Pilot Program
— Establishes a State Treasurer-led pilot program to allow rental payment history to be reported to credit agencies to help tenants build credit.
— Tenants must complete a financial education course before participating.
— Runs from January 1, 2026, to December 31, 2027, with a final report due in 2028.
Housing and Public Accommodation Protections
— Expands anti-discrimination protections to immigration status and citizenship in housing and public accommodations.
— Strengthens protections against harassment in housing.
Act 250 Appeals Study
— Requires the Land Use Review Board to evaluate whether Act 250 permit appeals should be handled by the board or remain in the Environmental Division of the Superior Court.
— Focuses on expediting housing-related appeals.
Manufactured Housing
— Ensures that municipal zoning cannot exclude manufactured homes in residential areas.
Brownfields Redevelopment
— Expands funding and streamlines processes for redeveloping contaminated sites into housing.
— Prioritizes brownfield remediation at sites designated for housing development.
— Allocates $6 million for brownfield revitalization.
Tax Incentives for Housing Development
Three-year property tax exemption for:
— Accessory dwelling units (ADUs).
— Rental housing improvements funded by VRHIP.
— VHFA Off-Site Construction Study
— Allocates $250,000 for a study on modular and off-site construction for housing.
— Examines bulk purchase strategies to lower construction costs.
Fiscal Appropriations
$39.6 million for various housing programs, including:
— $15 million for middle-income homeownership development.
— $15 million for the rental housing revolving loan fund.
— $9.1 million for infrastructure expansion.
— $500,000 for homebuyer education programs.
— $100,000 to fund the Positive Rental Payment Pilot Program.
Effective Date
The legislation takes effect on July 1, 2025.
This bill is a comprehensive housing reform package that addresses affordable rental housing, manufactured homes, infrastructure expansion, first-time homebuyer assistance, housing discrimination protections, and brownfield redevelopment. It aims to increase housing supply, provide financial assistance for homeowners and landlords, and improve housing access for vulnerable populations.