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H.412 1
Introduced by Representatives McCoy of Poultney, Bartley of Fairfax, 2
Charlton of Chester, and Dolgin of St. Johnsbury 3
Referred to Committee on 4
Date: 5
Subject: Conservation and development; land use; Act 250; regional planning; 6
housing; tax increment financing 7
Statement of purpose of bill as introduced: This bill proposes to make multiple 8
changes related to housing, including changes to land use planning, Act 250, 9
municipal and regional planning, housing programs, and tax increment 10
financing. 11
An act relating to land use and housing development 12
It is hereby enacted by the General Assembly of the State of Vermont: 13
* * * Road Rule * * * 14
Sec. 1. 10 V.S.A. § 6001 is amended to read: 15
§ 6001. DEFINITIONS 16
As used in this chapter: 17
* * * 18
(3)(A) “Development” means each of the following: 19
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(xii) The construction of a road or roads and any associated 1
driveways to provide access to or within a tract of land owned or controlled by 2
a person. For the purposes of determining jurisdiction under this subdivision, 3
any new development or subdivision on a parcel of land that will be provided 4
access by the road and associated driveways is land involved in the 5
construction of the road. 6
(I) Jurisdiction under this subdivision shall not apply unless the 7
length of any single road is greater than 800 feet, or the length of all roads and 8
any associated driveways in combination is greater than 2,000 feet. 9
(II) As used in this subdivision (xii), “roads” include any new 10
road or improvement to a class 4 town highway by a person other than a 11
municipality, including roads that will be transferred to or maintained by a 12
municipality after their construction or improvement. Routine maintenance 13
and minor repairs of a Class 4 highway shall not constitute an “improvement.” 14
Routine maintenance shall include replacing a culvert or ditch, applying new 15
stone, grading, or making repairs after adverse weather. Routine maintenance 16
shall not include changing the size of the road, changing the location or layout 17
of the road, or adding pavement. 18
(III) For the purpose of determining the length of any road and 19
associated driveways, the length of all other roads and driveways within the 20
tract of land constructed after July 1, 2026 shall be included. 21 BILL AS INTRODUCED H.412
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(IV) This subdivision (xii) shall not apply to: 1
(aa) a State or municipal road, a utility corridor of an 2
electric transmission or distribution company, or a road used primarily for 3
farming or forestry purposes; 4
(bb) development within a Tier 1A area established in 5
accordance with section 6034 of this title or a Tier 1B area established in 6
accordance with section 6033 of this title; and 7
(cc) improvements underway when this section takes effect 8
to a Class 4 highway that will be transferred to the municipality. 9
(V) The conversion of a road used for farming or forestry 10
purposes that also meets the requirements of this subdivision (xii) shall 11
constitute development. 12
(VI) The intent of this subdivision (xii) is to encourage the 13
design of clustered subdivisions and development that does not fragment Tier 2 14
areas or Tier 3 areas. 15
(xiii) The construction of improvements for commercial, 16
industrial, or residential purposes in a Tier 3 area as determined by rules 17
adopted by the Board. 18
* * * 19
(D) The word “development” does not include: 20
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(viii)(I) The construction of a priority housing project in a 1
municipality with a population of 10,000 or more. 2
(II) If the construction of a priority housing project in this 3
subdivision (3)(D)(viii) involves demolition of one or more buildings that are 4
listed or eligible to be listed on the State or National Register of Historic 5
Places, this exemption shall not apply unless the Division for Historic 6
Preservation has made the determination described in subdivision (A)(iv)(I)(ff) 7
of this subdivision (3) and any imposed conditions are enforceable in the 8
manner set forth in that subdivision. 9
(III) Notwithstanding any other provision of law to the 10
contrary, and in addition to the provisions exemption subsection 6081(p) of 11
this chapter, until January July 1, 2027 2035, the construction of a priority 12
housing project or related subdivision located entirely within areas of a 13
designated downtown development district, designated neighborhood 14
development area, or a designated growth center or within one-half mile 15
around such designated center with permanent zoning and subdivision bylaws 16
served by public sewer or water services or soils that are adequate for 17
wastewater disposal or extending to the terminus of the areas served by public 18
sewer or water services if beyond the one-half mile area. Construction must be 19
substantially completed by June 30, 2035. For purposes of this subdivision 20
(III), in order for a parcel to qualify for the exemption, at least 51 percent of 21 BILL AS INTRODUCED H.412
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the parcel shall be located within one-half mile of the designated center 1
boundary. If the one-half mile around the designated center extends into an 2
adjacent municipality, the legislative body of the adjacent municipal may 3
inform the Board that it does not want the exemption to extend into that area. 4
* * * 5
(28) “Mixed use” means construction of both mixed income residential 6
housing and construction of space for any combination of commercial and 7
public purposes, including retail, office, services, artisan, and recreational, 8
municipal, State, and community facilities, provided at least 40 percent of the 9
gross floor area of the buildings involved is mixed income residential housing. 10
“Mixed use” does not include industrial use. 11
* * * 12
(35) “Priority housing project” means a discrete project located on a 13
single tract or multiple contiguous tracts of land that consists exclusively of 14
mixed income housing or mixed use, or any combination thereof with mixed 15
income housing, and is located entirely within a designated downtown 16
development district, designated new town center, designated growth center, or 17
designated neighborhood development area under 24 V.S.A. chapter 76A or 18
within a downtown or village center, village area, or planned growth area as 19
defined in 24 V.S.A. chapter 139. 20
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(46) “Tier 3” means an area consisting of critical natural resources 1
defined by the rules of the Board. The Board’s rules shall at a minimum 2
determine whether and how to protect river corridors, headwater streams, 3
habitat connectors of statewide significance, riparian areas, class A waters, 4
natural communities, and other critical natural resources. [Repealed.] 5
* * * 6
(51) “Transit route” means a set route or network of routes on which a 7
public transit service as defined in 24 V.S.A. § 5088 operates a regular 8
schedule and as may be further defined by Board rule. 9
(52) “Infill” or “infill development” means the use of vacant land or 10
property within an existing settlement for further construction or development. 11
* * * Repeal of Road Construction Rulemaking * * * 12
Sec. 2. 2024 Acts and Resolves No. 181, Sec. 20 is amended to read: 13
Sec. 20. RULEMAKING; ROAD C ONSTRUCTION 14
The Natural Resources Board may adopt rules after consulting with 15
stakeholders, providing additional specificity to the necessary elements of 10 16
V.S.A. § 6001(3)(A)(xii). It is the intent of the General Assembly that any 17
rules encourage the design of clustered subdivisions and development that does 18
not fragment Tier 2 areas or Tier 3 areas. [Repealed.] 19 BILL AS INTRODUCED H.412
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* * * Jurisdictional Opinions * * * 1
Sec. 3. 10 V.S.A. § 6007 is amended to read: 2
§ 6007. ACT 250 DISCLOSURE STATEMENT; JURISDICTIONAL 3
DETERMINATION 4
* * * 5
(c) With respect to the partition or division of land, or with respect to an 6
activity that might or might not constitute development, any person may 7
submit to the district coordinator an “Act 250 Disclosure Statement” and other 8
information required by the rules of the Board and may request a jurisdictional 9
opinion from the district coordinator on behalf of the Board concerning the 10
applicability of this chapter. A district coordinator’s decision made on behalf 11
of the Board that a land use application is substantially incomplete shall be 12
treated as a jurisdictional opinion. If a requestor wishes a final determination 13
to be rendered on the question, the district coordinator, on behalf of the Board, 14
at the expense of the requestor and in accordance with rules of the Board, shall 15
publish notice of the issuance of the opinion in a local newspaper generally 16
circulating in the area where the land that is the subject of the opinion is 17
located and shall serve the opinion on all persons listed in subdivisions 18
6085(c)(1)(A) through (D) of this title. In addition, the requestor who is 19
seeking a final determination shall consult with the district coordinator, on 20
behalf of the Board, and obtain approval of a subdivision 6085(c)(1)(E) list of 21 BILL AS INTRODUCED H.412
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persons who shall be notified by the district coordinator because they are 1
adjoining property owners or other persons who would be likely to be able to 2
demonstrate a particularized interest protected by this chapter that may be 3
affected by an act or decision by a District Commission. 4
(d) Completeness. An application that is incomplete in substantial respects 5
shall not be accepted for filing by the district coordinator and therefore shall 6
not initiate the time and notice requirements of the chapter and the associated 7
rules. A district coordinator’s decision that an application is substantially 8
incomplete shall be treated as a jurisdictional opinion pursuant to this section. 9
* * * Land Use Review Board * * * 10
Sec. 4. 10 V.S.A. § 6021 is amended to read: 11
§ 6021. BOARD; VACANCY; REMOVAL 12
(a) Board established. The Land Use Review Board is created. 13
(1) The Board shall consist of five members appointed by the Governor 14
after review and approval by the Land Use Review Board Nominating 15
Committee in accordance with subdivision (2) of this subsection and 16
confirmed with the advice and consent of the Senate, so that one appointment 17
expires in each year. The Chair and the other four members shall be full-time 18
positions. In making these appointments, the Governor and the Senate shall 19
give consideration to candidates who have experience, expertise, or skills 20
relating to one or more of the following areas: environmental science; land use 21 BILL AS INTRODUCED H.412
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law, policy, planning, and development; and community planning. All 1
candidates shall have a commitment to environmental justice. 2
(A) The Governor shall appoint a chair of the Board, a position that 3
shall be a full-time position. The Governor shall ensure Board membership 4
reflects, to the extent possible, the racial, ethnic, gender, and geographic 5
diversity of the State. The Board shall not contain two members who reside in 6
the same county. 7
(B) Following initial appointments, the members shall be appointed 8
for terms of five years. All terms after initial appointments shall begin on July 9
February 1 and expire on June 30 January 31. A member may continue 10
serving until a successor is appointed. The initial appointments shall be for 11
staggered terms of one year, two years, three years, four years, and five years. 12
* * * 13
(d) Disqualified members. The Chair of the Board, upon request of the 14
Chair of a District Commission, may appoint and assign former Commission 15
members to sit on specific Commission cases matters when some or all of the 16
regular members and alternates of the District Commission are disqualified or 17
otherwise unable to serve. If necessary to achieve a quorum, the Chair of the 18
Board may appoint a member of a District Commission who has not worked 19
on the case matter to sit on a specific case matter before the Board. 20
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Sec. 5. 2024 Acts and Resolves No. 181, Sec. 11 is amended to read: 1
Sec. 11. LAND USE REVIEW BOARD APPOINTMENTS; REVISION 2
AUTHORITY 3
* * * 4
(d) The Land Use Review Board is the successor entity to the Natural 5
Resources Board, and all rights, obligations, and authority of the Natural 6
Resources Board are hereby transferred to the Land Use Review Board, 7
including with respect to contracts, settlements, appeals, enforcement, policies, 8
rulemaking, and guidance. This succession is retroactive to January 1, 2025. 9
The rules of the Natural Resources Board in effect on December 31, 2024 shall 10
become rules of the Land Use Review Board. In those rules, the Land Use 11
Review Board is authorized to change all references to the Natural Resources 12
Board so that they refer to the Land Use Review Board. Unless accompanied 13
by one or more other revisions to the rules, such a change need not be made 14
through the rulemaking process under the Administrative Procedure Act. 15
* * * Tier 1B * * * 16
Sec. 6. 10 V.S.A. § 6033 is amended to read: 17
§ 6033. REGIONAL PLAN FUTURE LAND USE MAP REVIEW 18
* * * 19
(c) To obtain a Tier 1B area status under this section the regional planning 20
commission shall demonstrate to the Board that the municipalities with Tier 1B 21 BILL AS INTRODUCED H.412
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areas meet the following requirements as included in subdivision 24 V.S.A. 1
§ 4348a(a)(12)(C): 2
(1) The municipality has not requested to opt out to have the area 3
mapped for Tier 1B. A municipality may request to opt out of Tier 1B area 4
status by submitting a resolution passed by the municipality to the relevant 5
regional planning commission and the Board. 6
* * * 7
(6) The municipality has municipal staff, municipal officials, or regional 8
planning commission staff or other contracted capacity adequate to support 9
development review and zoning administration in the Tier 1B area. 10
* * * Tier 1A * * * 11
Sec. 7. 10 V.S.A. § 6034 is amended to read: 12
§ 6034. TIER 1A AREA STATUS 13
(a) Application and approval. 14
(1) Beginning on January September 1, 2026, a municipality, by 15
resolution of its legislative body, may shall be able to apply to the Land Use 16
Review Board for Tier 1A status for the area of the municipality that is suitable 17
for dense development and meets the requirements of subsection (b) of this 18
section. A municipality may apply for multiple noncontiguous areas to be 19
receive Tier 1A area status. Applications may be submitted at different times. 20
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(b) Tier 1A area status requirements. 1
(1) To obtain a Tier 1A area status under this section, a municipality 2
shall demonstrate to the Board that it has each of the following: 3
* * * 4
(F) The Tier 1A area is compatible with the character of adjacent 5
National Register Historic Districts, National or State Register Historic Sites, 6
and other significant cultural and natural resources identified by local or State 7
government. 8
(G) The municipality has identified and planned for the maintenance 9
of significant natural communities, rare, threatened, and endangered species 10
located in the Tier 1A area or excluded those areas from the Tier 1A area. 11
(H) Public water and wastewater systems or planned improvements 12
have the capacity to support additional development within the Tier 1A area. 13
(I)(G) Municipal or regional planning commission staff or other 14
contracted capacity adequate to support coordinated comprehensive and capital 15
planning, development review, and zoning administration in the Tier 1A area. 16
* * * 17
* * * Tier 1A Area Guidelines * * * 18
Sec. 8. 2024 Acts and Resolves No. 181, Sec. 29 is amended to read: 19
Sec. 29. TIER 1A AREA GUIDELINES 20 BILL AS INTRODUCED H.412
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On or before January March 1, 2026, the Land Use Review Board shall 1
publish guidelines to direct municipalities seeking to obtain the Tier 1A area 2
status. The guidelines shall include how a municipality shall demonstrate that 3
improvements are planned for a public water or wastewater system and at what 4
stage in the process the improvements need to be to provide a reasonable 5
expectation of completion. 6
Sec. 9. 2024 Acts and Resolves No. 181, Sec. 22 is amended to read: 7
Sec. 22. TIER 3 RULEMAKING CRITICAL ENVIRONMENTAL 8
RESOURCES WORKING GROUP 9
(a) The Land Use Review Board, in consultation with the Secretary of 10
Natural Resources, shall adopt rules undertake a study to implement 11
investigate the necessity of and requirements for the administration of 10 12
V.S.A. § 6001(3)(A)(xiii) and 10 V.S.A. § 6001(46) and (19) an additional 13
Tier or expanded criteria for Act 250 jurisdiction covering critical 14
environmental resources. It is the intent of the General Assembly that these 15
rules the study identify critical natural resources for protection. The Board 16
shall review the a potential definition of Tier 3 area these areas; determine the 17
critical natural resources that shall may be included in Tier 3, giving due 18
consideration to river corridors, headwater streams, habitat connectors of 19
statewide significance, riparian areas, class A waters, and natural communities; 20
any additional critical natural resources that should may be added to the 21 BILL AS INTRODUCED H.412
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definition; measures to ensure that no municipality or region is 1
disproportionately impacted by Tier 3 designation expanding protection of 2
these areas that would limit reasonable opportunities for Tier 1 or Tier 2 3
designations; and how to define the boundaries. Rules adopted by the Board 4
The study shall include: 5
(1) any necessary clarifications to how the Tier 3 definition is or 6
additional criteria would be used in 10 V.S.A. chapter 151, including whether 7
and how subdivisions would be covered under the jurisdiction of Tier 3; 8
(2) any necessary changes to how 10 V.S.A. § 6001(3)(A)(xiii) 9
construction of improvements for commercial, industrial, or residential 10
purposes in the areas affected should be administered and when jurisdiction 11
should be triggered to protect the functions and values of resources of critical 12
natural resources; 13
(3) the process for how Tier 3 these areas will be mapped or identified 14
by the Agency of Natural Resources and the Board; and 15
(4) other policies or programs that shall may be developed to review 16
development impacts to Tier 3 these areas if they are not included in 10 V.S.A. 17
§ 6001(46); and 18
(5) if a critical natural resource area is not recommended for protection 19
under Tier 3, it shall be identified in the rule, and a rationale shall be provided 20
as to why the critical resource was not selected for Tier 3 protection. 21 BILL AS INTRODUCED H.412
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(b) On or before January 1, 2025, the Board shall convene a working group 1
of stakeholders to provide input to the rule prior to prefiling with the 2
Interagency Committee on Administrative Rules study prior to submission to 3
the General Assembly. The working group As part of the study, the Board 4
shall include hear from representation from regional planning commissions; 5
environmental groups; science and ecological research organizations; 6
woodland or forestry organizations; the Vermont Housing and Conservation 7
Board; the Vermont Chamber of Commerce; the League of Cities of Towns; 8
the Land Access and Opportunity Board; the State Natural Resources 9
Conservation Council; and other stakeholders, such as the Vermont Ski Areas 10
Association, the Department of Taxes, Division of Property Valuation and 11
Review, the Department of Forests, Parks and Recreation, the Department of 12
Environmental Conservation, the Department of Fish and Wildlife, the 13
Vermont Woodlands Association, and the Professional Logging Contractors of 14
the Northeast. 15
(c) The Board shall file a final proposed rule with the Secretary of State 16
and Legislative Committee on Administrative Rules the study with the House 17
Committee on Environment and the Senate Committee on Natural Resources 18
and Energy on or before February 1, 2026. After the Land Use Review Board 19
files the rule with Legislative Committee on Administrative Rules, it shall 20
submit a report describing the rules and the issues reviewed under this section 21 BILL AS INTRODUCED H.412
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to the House Committee on Environment and Energy and the Senate 1
Committee on Natural Resources and Energy. 2
(d) During the rule development study, the stakeholder group established 3
under subsection (b) of this section shall solicit participation from 4
representatives of municipalities and landowners that host Tier 3 potential 5
critical resource areas on their properties to determine the responsibilities and 6
education needed to understand, manage, and interact with the resources. 7
Sec. 10. REPEAL. 8
2024 Acts and Resolves No. 181, Sec. 14. (criterion 8(C) rulemaking) is 9
repealed. 10
* * * Act 250 Exemptions * * * 11
Sec. 11. 10 V.S.A. § 6081 is amended to read: 12
§ 6081. PERMITS REQUIRED; EXEMPTIONS 13
* * * 14
(p) No permit or permit amendment is required for a priority housing 15
project or related subdivision in a designated center if the project remains 16
below any applicable jurisdictional threshold specified in subdivision 17
6001(3)(A)(iv)(I) of this title. 18
* * * 19
(y) Until December 31, 2030 July 1, 2035, no permit or permit amendment 20
is required for a retail electric distribution utility’s rebuilding of existing 21 BILL AS INTRODUCED H.412
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electrical distribution lines and related facilities to improve reliability and 1
service to existing customers, through overhead or underground lines in an 2
existing corridor, road, or State or town road right-of-way. Nothing in this 3
section shall be interpreted to exempt projects under this subsection from other 4
required permits or the conditions on lands subject to existing permits required 5
by this section. 6
(z)(1) Notwithstanding any other provision of this chapter to the contrary, 7
no permit or permit amendment is required for any subdivision, development, 8
or change to an existing project, as defined by Board rules, that is located 9
entirely within a Tier 1A area under section 6034 of this chapter. Units 10
constructed pursuant to this subsection shall not count towards the total units 11
constructed in other Tier areas. 12
(2) Notwithstanding any other provision of this chapter to the contrary, 13
no permit or permit amendment is required within a Tier 1B area approved by 14
the Board under section 6033 of this chapter for the subdivision for or 15
construction of 50 units or fewer of housing on a tract or tracts of land 16
involving 10 acres or less or for mixed-use development with 50 units or fewer 17
of housing on a tract or tracts of land involving 10 acres or less. Units 18
constructed pursuant to this subsection shall not count towards the total units 19
constructed in other Tier areas. 20 BILL AS INTRODUCED H.412
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(A) No permit or permit amendment is required for any subdivision, 1
development, or change to an existing project, as defined by Board rules, for 2
priority housing projects in Tier 1B eligible areas up to 50 units. 3
(B) No permit or permit amendment is required for any subdivision, 4
development, or change to an existing project, as defined by Board rules, for 5
priority housing projects in Tier 1B areas up to 75 units. 6
(3) Upon receiving notice and a copy of the permit issued by an 7
appropriate municipal panel pursuant to 24 V.S.A. § 4460(g), a previously 8
issued permit for a development or subdivision located in a Tier 1A area shall 9
remain attached to the property. However, neither the Board nor the Agency 10
of Natural Resources shall enforce the permit or assert amendment jurisdiction 11
on the tract or tracts of land unless the designation is revoked terminated or the 12
municipality has not taken any reasonable action to enforce the conditions of 13
the permit. The permit may also be discharged upon request of the permittee 14
pursuant to section 6091of this chapter. 15
(aa) No permit or permit amendment is required for the construction of 16
improvements for a hotel or motel converted to permanently affordable 17
housing developments as defined in 24 V.S.A. § 4303(2). 18
(bb) Until July 1, 2028 July 1, 2035, no permit or permit amendment is 19
required for the construction of improvements for one accessory dwelling unit 20
constructed within or appurtenant to a single-family dwelling. Units 21 BILL AS INTRODUCED H.412
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constructed pursuant to this subsection shall not count towards the total units 1
constructed in other projects. 2
(cc) Until July 1, 2028 July 1, 2035, no permit amendment is required for 3
the construction of improvements for converting a structure used for a 4
commercial purpose nonresidential structure to 29 or fewer housing units. 5
(dd) Interim housing exemptions. 6
(1) Notwithstanding any other provision of law to the contrary, until 7
January 1, 2027 July 1, 2035, no permit or permit amendment is required for 8
the subdivision for or the construction of housing projects and mixed-use 9
development such as cooperatives, condominiums, dwellings, or mobile 10
homes, with 75 units or fewer, constructed or maintained on a tract or tracts of 11
land, located entirely within the areas of a designated new town center, a 12
designated growth center, or a designated neighborhood development area 13
served by public sewer or water services or soils that are adequate for 14
wastewater disposal. Housing units constructed pursuant to this subdivision 15
shall not count towards the total units constructed in other areas. This 16
exemption shall not apply to areas within mapped river corridors and 17
floodplains identified flood hazard and fluvial erosion areas except those areas 18
containing preexisting development in areas suitable for infill development as 19
defined in 29-201 of the Vermont Flood Hazard Area and River Corridor Rule 20
or unless the municipality has adopted flood hazard and river corridor bylaws 21 BILL AS INTRODUCED H.412
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applicable to the entire municipality that are consistent with the standards 1
established pursuant to subsections 755(b) and 428(b) of this title. 2
(2)(A) Notwithstanding any other provision of law to the contrary, until 3
July 1, 2027 2035, no permit or permit amendment is required for the 4
subdivision for or the construction of housing projects and mixed-use 5
development such as cooperatives, condominiums, dwellings, or mobile 6
homes, with 50 or fewer units, constructed or maintained on a tract or tracts of 7
land of 10 acres or less, located entirely within: 8
(i) areas of a designated village center and within one-quarter mile 9
of its boundary with permanent zoning and subdivision bylaws and served by 10
public sewer or water services or soils that are adequate for wastewater 11
disposal or extending to the terminus of the area served by public sewer or 12
water services if beyond the one-quarter mile area; or 13
(ii) areas of a municipality that are within a census-designated 14
urbanized area adjusted federal aid urban areas as approved by the federal 15
highway administration with over 50,000 residents and or within one-quarter 16
mile of a transit route in existence and mapped as of July 1, 2024 and which 17
may be further defined and updated by Board rule or guidance. 18
(B) Housing units constructed pursuant to this subdivision (2) shall 19
not count towards the total units constructed in other areas. This exemption 20
shall not apply to areas within mapped river corridors and floodplains 21 BILL AS INTRODUCED H.412
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identified flood hazard and fluvial erosion areas, except those areas containing 1
preexisting development in areas suitable for infill development as defined in 2
29-201 of the Vermont Flood Hazard Area and River Corridor Rule or unless 3
the municipality has adopted flood hazard and river corridor bylaws applicable 4
to the entire municipality that are consistent with the standards established 5
pursuant to subsections 755(b) and 428(b) of this title. For purposes of this 6
subdivision, in order for a parcel to shall qualify for the exemption, at least 51 7
percent if any part of the parcel shall be is located within one-quarter mile of 8
the designated village center boundary or the center line of the transit route. If 9
the one-quarter mile extends into an adjacent municipality, the legislative body 10
of the adjacent municipal may inform the Board that it does not want the 11
exemption to extend into that area. 12
(3) Notwithstanding any other provision of law to the contrary, until 13
January 1, 2027 July 1, 2035, no permit or permit amendment is required for 14
the construction of or subdivision for, or the housing projects and mixed use 15
development such as cooperatives, condominiums, dwellings, or mobile 16
homes, constructed or maintained on a tract or tracts of land, located entirely 17
within a designated downtown development district with permanent zoning 18
and subdivision bylaws served by public sewer or water services or soils that 19
are adequate for wastewater disposal or extending to the terminus of the areas 20
served by public sewer or water services if beyond area of the development 21 BILL AS INTRODUCED H.412
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district. Housing units constructed pursuant to this subdivision shall not count 1
towards the total units constructed in other areas. This exemption shall not 2
apply to areas within mapped river corridors and floodplains except those areas 3
containing preexisting development in areas suitable for infill development as 4
defined in 29-201 of the Vermont Flood Hazard Area and River Corridor Rule 5
or unless the municipality has adopted flood hazard and river corridor bylaws 6
applicable to the entire municipality that are consistent with the standards 7
established pursuant to subsections 755(b) and 428(b) of this title. 8
(4) This subsection is effective retroactively to July 1, 2023. Any 9
project permitted after July 1, 2023 that meets the requirements of this 10
subsection may seek a discharge of the permit from the District Commission. 11
* * * Discharge of Act 250 Permits and Jurisdiction * * * 12
Sec. 12. 10 V.S.A. § 6091 is amended to read: 13
§ 6091. RENEWALS; AND DISCHARGE; NONUSE 14
* * * 15
(e) Discharge of permits. Existing permits and jurisdiction encumbering a 16
parcel may be discharged by the District Commission or LURB upon request 17
of the parcel owner or permittee if the parcel is changed to a use that would not 18
otherwise trigger jurisdiction or the parcel falls within an area otherwise 19
exempt from jurisdiction as approved by LURB. The District Commission or 20
LURB may deny a request for permit discharge if the permit contains ongoing 21 BILL AS INTRODUCED H.412
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conditions that relate to the use of the property. The LURB shall be 1
responsible for continued review and enforcement of these conditions. A 2
denial of a request for discharge may be appealed to Environmental Division 3
of the Superior Court. 4
Sec. 13. 2023 Acts and Resolves No. 47, Sec. 16a is amended to read: 5
Sec. 16a. ACT 250 EXEMPTION REQUIREMENTS 6
In order to qualify for the exemptions established in 10 V.S.A. § 6001 7
(3)(A)(xi) and (3)(D)(viii)(III), a A person shall may request a jurisdictional 8
opinion under 10 V.S.A. § 6007 on or before June 30, 2026 to confirm a 9
project is exempted under-exemptions established in 10 V.S.A. § 6001 10
(3)(A)(xi) and (3)(D)(viii)(III). The jurisdictional opinion shall require the 11
project to substantially complete construction on or before June 30, 2029 July 12
1, 2035 in order to remain exempt. A jurisdictional opinion is not required to 13
utilize the exemption. 14
* * * LURB Public Meeting Exemption * * * 15
Sec. 14. 1 V.S.A. § 312 is amended to read: 16
§ 312. RIGHT TO ATTEND MEETINGS OF PUBLIC AGENCIES 17
* * * 18
(e) Nothing in this section or in section 313 of this title shall be construed 19
as extending to the Judicial Branch of the Government of Vermont or of any 20
part of the same or to the Public Utility Commission or the Land Use Review 21 BILL AS INTRODUCED H.412
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Board established in 10 V.S.A. § 6021; nor shall it extend to the deliberations 1
of any public body in connection with a quasi-judicial proceeding; nor shall 2
anything in this section be construed to require the making public of any 3
proceedings, records, or acts which are specifically made confidential by the 4
laws of the United States of America or of this State. 5
* * * 6
* * * Community Investment Board Transition * * * 7
Sec. 15. 24 V.S.A. § 5802(f) is amended to read: 8
(f) In addition to any other duties confirmed by law, the State Board shall 9
have the following duties: 10
* * * 11
(6) To assume authority over any remaining powers and responsibilities 12
of the former Downtown Board established under 24 V.S.A. chapter 76A. The 13
Community Investment Board is the successor entity of the Downtown Board 14
with all due rights, duties, and authority transferred thereto. 15
* * * Designation Transition * * * 16
Sec. 16. 24 V.S.A. § 4348 is amended to read: 17
§ 4348. ADOPTION AND AMENDMENT OF REGIONAL PLAN 18
* * * 19
(g) A regional plan or amendment shall be adopted by not less than a 60 20
percent vote of the commissioners representing municipalities, in accordance 21 BILL AS INTRODUCED H.412
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with the bylaws of the regional planning commission. A regional plan shall be 1
effective upon adoption for regional purposes and will remain effective for 2
purposes other than future land use mapping if not approved by the Land Use 3
Review Board. 4
* * * 5
(p) Regional planning commissions shall adopt a regional plan in 6
conformance with this title after July 1, 2025 and on or before December 31, 7
2026. 8
Sec. 17. 24 V.S.A. § 5803 is amended to read: 9
§ 5803. DESIGNATION OF DOWNTOWN AND VILLAGE CENTERS 10
(a) Designation established. A regional planning commission may apply to 11
the LURB for approval and designation of all centers by submitting the 12
regional plan future land use map adopted by the regional planning 13
commission. The regional plan future land use map shall identify downtown 14
centers and village centers as the downtown and village areas eligible for 15
designation as centers. The Department and State Board shall provide 16
comments to the LURB on areas eligible for center designation as provided 17
under this chapter. 18
* * * 19
(e) Transition. All designated downtowns, village centers, or new town 20
centers existing as of December 31, 2025 will retain current benefits until 21 BILL AS INTRODUCED H.412
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December 31, 2026 2027 or until approval of the regional future land use maps 1
by the LURB, whichever comes first. All existing designations in effect 2
December 31, 2025 will expire December 31, 2026 2027 if the regional plan 3
does not receive LURB approval under this chapter. All benefits for unexpired 4
designated downtowns, village centers, and new town centers that are removed 5
under this chapter shall remain in effect until July 1, 2034 2035. Prior to June 6
30, 2026 2027, no check-in or renewals shall be required for the preexisting 7
designations. New applications for downtowns, villages, and new town centers 8
may be approved by the State Board prior to the first public hearing on a 9
regional future land use map or until December 31, 2025, whichever comes 10
first. 11
(f) Benefits Steps. A center may receive the benefits associated with the 12
steps in this section by meeting the established requirements. The Department 13
shall review applications from municipalities to advance from Step One to 14
Two and from Step Two to Three and issue written decisions. The Department 15
shall issue a written administrative decision within 30 days following an 16
application. If a municipal application is rejected by the Department, the 17
municipality may appeal the administrative decision to the State Board. To 18
maintain a downtown approved under chapter 76A after December 31, 2026 19
2035, the municipality shall apply for renewal following a regional planning 20
approval by the LURB and meet the program requirements. Step Three 21 BILL AS INTRODUCED H.412
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designations that are not approved for renewal revert to Step Two. The 1
municipality may appeal the administrative decision of the Department to the 2
State Board. Appeals of administrative decisions shall be heard by the State 3
Board at the next meeting following a timely filing stating the reasons for the 4
appeal. The State Board’s decision is final. The Department shall issue 5
guidance to administer these steps. 6
* * * 7
Sec. 18. 24 V.S.A. § 5804 is amended to read: 8
§ 5804. DESIGNATED NEIGHBORHOOD 9
* * * 10
(b) Transition. All designated growth center or neighborhood development 11
areas existing as of December 31, 2025 will retain current benefits until 12
December 31, 2026 2027 or upon approval of the regional plan future land use 13
maps, whichever comes first. All existing neighborhood development area and 14
growth center designations in effect on December 31, 2025 will expire on 15
December 31, 2026 2027 if the regional plan future land use map is not 16
approved. All benefits that are removed for unexpired neighborhood 17
development areas and growth centers under this chapter shall remain active 18
with prior designations existing as of December 31, 2025 until December 31, 19
2034 2035. Prior to December 31, 2026 2027, no check-ins or renewal shall be 20
required for the existing designations. New applications for neighborhood 21 BILL AS INTRODUCED H.412
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development area designations may be approved by the State Board prior to 1
the first hearing for a regional plan adoption or until December 31, 2025, 2
whichever comes first. 3
* * * 4
* * * Appeals * * * 5
* * * Priority for Act 250 and LURB Appeals * * * 6
Sec. 19. 10 V.S.A. § 6089 is amended to read: 7
§ 6089. APPEALS 8
(a) Appeals of any act or decision of a District Commission under this 9
chapter or a district coordinator under subsection 6007(c) of this title shall be 10
made to the Environmental Division in accordance with chapter 220 of this 11
title. For the purpose of this section, a decision of the Chair of a District 12
Commission under section 6001e of this title on whether action has been taken 13
to circumvent the requirements of this chapter shall be considered an act or 14
decision of the District Commission. 15
(b) Except cases the Court considers of greater importance, proceedings 16
involving development of residential housing before the Environmental 17
Division of the Superior Court and appeals there from take precedence on the 18
docket over all cases and shall be assigned for hearing and trial or for argument 19
at the earliest practicable date and expedited in every way. 20 BILL AS INTRODUCED H.412
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* * * Municipal Zoning Appeals * * * 1
Sec. 20. 24 V.S.A. § 4465 is amended to read: 2
§ 4465. APPEALS OF DECISIONS OF THE ADMINISTRATIVE OFFICER 3
* * * 4
(b) As used in this chapter, an “interested person” means any one of the 5
following: 6
* * * 7
(4) Any 20 persons A minimum of 20 percent of the most recent U.S. 8
Census Bureau population estimate of the municipality who may be any 9
combination of voters, residents, or real property owners within a municipality 10
listed in subdivision (2) of this subsection who, by signed petition to the 11
appropriate municipal panel of a municipality, the plan or a bylaw of which is 12
at issue in any appeal brought under this title, allege that any relief requested 13
by a person under this title, if granted, will not be in accord with the policies, 14
purposes, or terms of the plan or bylaw of that municipality. This petition to 15
the appropriate municipal panel must designate one person to serve as the 16
representative of the petitioners regarding all matters related to the appeal. For 17
purposes of this subdivision, an appeal shall not include the character of the 18
area affected if the project has a residential component that includes affordable 19
housing. 20
* * * 21 BILL AS INTRODUCED H.412
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(d) A party appealing a land use decision must demonstrate a clear and 1
substantial departure from the comprehensive plan or land use regulation that 2
directly affects the party’s property. 3
* * * Priority for Hearing of Housing Appeals * * * 4
Sec. 21. 24 V.S.A. § 4471 is amended to read: 5
§ 4471. APPEAL TO ENVIRONMENTAL DIVISION 6
* * * 7
(f) Except cases the Court considers of greater importance, proceedings 8
involving development of residential housing before the Environmental 9
Division of the Superior Court and appeals there from take precedence on the 10
docket over all cases and shall be assigned for hearing and trial or for argument 11
at the earliest practicable date and expedited in every way. 12
(g) A party appealing a land use decision must demonstrate a clear and 13
substantial departure from the comprehensive plan or land use regulation that 14
directly affects the party’s property. 15
Sec. 22. 10 V.S.A. § 8504 is amended to read: 16
§ 8504. APPEALS TO THE ENVIRONMENTAL DIVISION 17
* * * 18
(k) Limitations on appeals. Notwithstanding any other provision of this 19
section: 20
* * * 21 BILL AS INTRODUCED H.412
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(4) it shall be the goal of the Environmental Division to hear cases 1
involving development of residential housing within 60 days and to issue a 2
decision on a case involving development of residential housing or regarding 3
an appeal of an appropriate municipal panel decision under 24 V.S.A. chapter 4
117 within 90 days following the close of the hearing. 5
* * * 6
* * * Attorney’s Fees and Costs * * * 7
Sec. 23. 10 V.S.A. § 8507 is added to read: 8
§ 8507. LEGAL FEES AND ASSOCIATED COSTS OF APPEAL 9
(a) If an aggrieved person elects to appeal the judgment of the appropriate 10
municipal panel on an approved application for a project involving residential 11
housing to the court under this chapter, and the court rules in favor of the 12
applicant, the court shall require the aggrieved person to compensate, in a 13
sufficient sum as the court directs, the permit applicant for an amount not to 14
exceed $50,000.00 consisting of: 15
(1) the permit applicant’s reasonable attorney’s fees; and 16
(2) tangible costs incurred by the permit applicant in defending the 17
permit, such as costs of studies and other analysis. 18
(b) The court may grant dispensation from the compensation required in 19
subsection (a) of this section for aggrieved persons that can demonstrate undue 20
hardship due to income status or other factors in the court’s discretion. 21 BILL AS INTRODUCED H.412
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* * * Downtown and Village Center Tax Credits * * * 1
Sec. 24. 32 V.S.A. § 5930ee is amended to read: 2
§ 5930ee. LIMITATIONS 3
Beginning in fiscal year 2010 and thereafter, the State Board may award tax 4
credits to all qualified applicants under this subchapter, provided that: 5
(1) the total amount of tax credits awarded annually, together with sales 6
tax reallocated under section 9819 of this title, does not exceed $3,000,000.00 7
$5,000,000.00; 8
* * * 9
* * * Consistency of Flood Planning Requirements * * * 10
Sec. 25. 24 V.S.A. § 4348a is amended to read: 11
§ 4348a. ELEMENTS OF A REGIONAL PLAN 12
(a) A regional plan shall be consistent with the goals established in section 13
4302 of this title and shall include the following: 14
* * * 15
(12) A future land use element, based upon the elements in this section, 16
that sets forth the present and prospective location, amount, intensity, and 17
character of such land uses in relation to the provision of necessary community 18
facilities and services and that consists of a map delineating future land use 19
area boundaries for the land uses in subdivisions (A)–(J) of this subdivision 20
(12) as appropriate and any other special land use category the regional 21 BILL AS INTRODUCED H.412
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planning commission deems necessary; descriptions of intended future land 1
uses; and policies intended to support the implementation of the future land use 2
element using the following land use categories: 3
(A) Downtown or village centers. These areas are the mixed-use 4
centers bringing together community economic activity and civic assets. They 5
include downtowns, villages, and new town centers previously designated 6
under chapter 76A and downtowns and village centers seeking benefits under 7
the Community Investment Program under section 5804 of this title. The 8
downtown or village centers are the traditional and historic central business 9
and civic centers within planned growth areas, village areas, or may stand 10
alone. Village centers are not required to have public water, wastewater, 11
zoning, or subdivision bylaws. 12
(B) Planned growth areas. These areas include the high-density 13
existing settlement and future growth areas with high concentrations of 14
population, housing, and employment in each region and town, as appropriate. 15
They include a mix of historic and nonhistoric commercial, residential, and 16
civic or cultural sites with active streetscapes, supported by land development 17
regulations; public water or wastewater, or both; and multimodal transportation 18
systems. These areas include new town centers, downtowns, village centers, 19
growth centers, and neighborhood development areas previously designated 20
under chapter 76A of this title. These areas should generally meet the smart 21 BILL AS INTRODUCED H.412
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growth principles definition in chapter 139 of this title and the following 1
criteria: 2
(i) The municipality has a duly adopted and approved plan and a 3
planning process that is confirmed in accordance with section 4350 of this title 4
and has adopted bylaws and regulations in accordance with sections 4414, 5
4418, and 4442 of this title. 6
(ii) This area is served by public water or wastewater 7
infrastructure. 8
(iii) The area is generally within walking distance from the 9
municipality’s or an adjacent municipality’s downtown, village center, new 10
town center, or growth center. 11
(iv) The Unless the municipality has adopted flood hazard and 12
river corridor bylaws applicable to the entire municipality that are consistent 13
with the standards established pursuant to 10 V.S.A. § 755 (State flood hazard 14
area standards) and 10 V.S.A. § 1428 (river corridor protection), the area 15
excludes identified flood hazard and river corridor areas, except those areas 16
containing preexisting development in areas suitable for infill development as 17
defined in section 29-201 of the Vermont Flood Hazard Area and River 18
Corridor Rule. 19
* * * 20 BILL AS INTRODUCED H.412
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* * * Wetlands * * * 1
Sec. 26. 10 V.S.A. § 902 is amended to read: 2
§ 902. DEFINITIONS 3
Wherever used or referred to in this chapter, unless a different meaning 4
clearly appears from the context: 5
* * * 6
(7) “Class II wetland” means a wetland other than a Class I or Class III 7
wetland that: 8
(A) is a mapped wetland identified on the Vermont significant 9
wetlands inventory maps; or 10
(B) is an unmapped wetland that the Secretary determines to merit 11
protection, pursuant to section 914 of this title, based upon an evaluation of the 12
extent to which it serves the functions and values set forth in subdivision 13
905b(18)(A) of this title and the rules of the Department. 14
(8) “Class III wetland” means a wetland that is neither a Class I wetland 15
nor a Class II wetland. 16
(9) “Buffer zone” means an area contiguous to a significant wetland that 17
protects the wetland’s functions and values. 18
(A) The Except as provided in subdivision (B) of this subdivision (9): 19 BILL AS INTRODUCED H.412
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(i) the buffer zone for a Class I wetland shall extend at least 100 1
feet from the border of the wetland, unless the Department determines 2
otherwise under section 915 of this title. The; and 3
(ii) the buffer zone for a Class II wetland shall extend at least 50 4
feet from the border of the wetland unless the Secretary determines otherwise 5
under section 914 of this title. 6
(B) The buffer zone of a Class II wetland shall be 25 feet when the 7
wetland is located in: 8
(i) an industrial park, as that term is defined in subdivision 212(7) 9
of this title, that is permitted under chapter 151 of this title; 10
(ii) designated centers designated under 24 V.S.A. chapter 76A; 11
(iii) Tier 1A and Tier 1B areas approved by the Land Use Review 12
Board; or 13
(iv) locations meeting the requirements established in subsection 14
6081(z) of this title as eligible for an interim exemption from the permit or 15
permit amendment requirements of chapter 151 of this title. 16
(10) “Panel” means the Water Resources Panel of the Agency of Natural 17
Resources. 18
(11) “Significant wetland” means any Class I or Class II wetland. 19
(12)(11) “Secretary” means the Secretary of Natural Resources or the 20
Secretary’s authorized representative. 21 BILL AS INTRODUCED H.412
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(13)(12) “Dam removal” has the same meaning as in section 1080 of 1
this title. 2
Sec. 27. 10 V.S.A. § 913 is amended to read: 3
§ 913. PROHIBITION 4
(a) Except for allowed uses adopted by the Department by rule, no person 5
shall conduct or allow to be conducted an activity in a significant wetland or 6
buffer zone of a significant wetland except in compliance with a permit, 7
conditional use determination, or order issued by the Secretary. 8
(b) A permit shall not be required under this section for: 9
(1) any activity that occurred before the effective date of this section 10
unless the activity occurred within: 11
(A) an area identified as a wetland on the Vermont significant 12
wetlands inventory maps; 13
(B) a wetland that was contiguous to an area identified as a wetland 14
on the Vermont significant wetlands inventory maps; or 15
(C) the buffer zone of a wetland referred to in subdivision (A) or (B) 16
of this subdivision (1); 17
(2) any construction within a wetland that is identified on the Vermont 18
significant wetlands inventory maps or within the buffer zone of such a 19
wetland, provided that the construction was completed prior to February 23, 20 BILL AS INTRODUCED H.412
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1992, and no action for which a permit is required under the rules of the 1
Department was taken or caused to be taken on or after February 23, 1992; or 2
(3) any construction or activity in an unmapped Class II wetland located 3
in: 4
(i) an industrial park, as that term is defined in subdivision 212(7) 5
of this title, that is permitted under chapter 151 of this title; 6
(ii) designated centers designated under 24 V.S.A. chapter 76A; 7
(iii) Tier 1A and Tier 1B areas approved by the Land Use Review 8
Board; or 9
(iv) locations meeting the requirements established in subsection 10
6081(z) of this title as eligible for an interim exemption from the permit or 11
permit amendment requirements of chapter 151 of this title. 12
Sec. 28. 10 V.S.A. § 914 is amended to read: 13
§ 914. WETLANDS DETERMINATIONS 14
(a) The Secretary may, upon a petition or on his or her the Secretary’s own 15
motion, determine whether any wetland is a Class II or Class III wetland. Such 16
The Secretary’s determinations shall be based on an evaluation of the functions 17
and values set forth in subdivision 905b(18)(A) of this title and the rules of the 18
Department. 19
(b) The Secretary may establish the necessary width of the buffer zone of 20
any Class II wetland as part of any wetland determination pursuant to the rules 21 BILL AS INTRODUCED H.412
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of the Department, except that buffer zone of a Class II wetland shall be 25 1
feet when the wetland is located in: 2
(1) an industrial park, as that term is defined in subdivision 212(7) of 3
this title, that is permitted under chapter 151 of this title; 4
(2) designated centers designated under 24 V.S.A. chapter 76A; 5
(3) Tier 1A and Tier 1B areas approved by the Land Use Review Board; 6
or 7
(4) locations meeting the requirements established in subsection 6081(z) 8
of this title as eligible for an interim exemption from the permit or permit 9
amendment requirements of chapter 151 of this title. 10
* * * 11
Sec. 29. 10 V.S.A. § 918 is amended to read: 12
§ 918. NET GAIN OF WETLANDS; STATE GOAL; RULEMAKING 13
(a) On or before July 1, 2025 2026, the Secretary of Natural Resources 14
shall amend the Vermont Wetlands Rules pursuant to 3 V.S.A. chapter 25 to 15
clarify that the goal of wetlands regulation and management in the State is the 16
net gain of wetlands to be achieved through protection of existing wetlands and 17
restoration of wetlands that were previously adversely affected. This condition 18
shall not apply to wetland, river, and flood plain restoration projects, including 19
dam removals. 20 BILL AS INTRODUCED H.412
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(b)(1) The Vermont Wetlands Rules shall prioritize the protection of 1
existing intact wetlands from adverse effects. 2
(2) Where a permitted activity in a wetland will cause more than 5,000 3
square feet of adverse effects that cannot be avoided, the Secretary shall 4
mandate that the permit applicant restore, enhance, or create wetlands or 5
buffers to compensate for the adverse effects on a wetland. The amount of 6
wetlands to be restored, enhanced, or created shall be calculated, at a 7
minimum, by determining the acreage or square footage of wetlands 8
permanently drained or filled as a result of the permitted activity and 9
multiplying that acreage or square footage by two, to result in a ratio of 2:1 10
restoration to wetland loss, except that a ratio of 1:1 restoration to wetland loss 11
shall apply in: 12
(A) an industrial park, as that term is defined in subdivision 212(7) of 13
this title, that is permitted under chapter 151 of this title; 14
(B) designated centers designated under 24 V.S.A. chapter 76A; 15
(C) Tier 1A and Tier 1B areas approved by the Land Use Review 16
Board; or 17
(D) locations meeting the requirements established in subsection 18
6081(z) of this title as eligible for an interim exemption from the permit or 19
permit amendment requirements of chapter 151 of this title. 20 BILL AS INTRODUCED H.412
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(3) Establishment of a buffer zone contiguous to a wetland shall not 1
substitute for the restoration, enhancement, or creation of wetlands. Adverse 2
impacts to wetland buffers shall be compensated for based on the effects of the 3
impact on wetland function. 4
* * * 5
Sec. 30. 10 V.S.A. § 919 is amended to read: 6
§ 919. WETLANDS PROGRAM REPORTS 7
(a) On or before April 30, 2025, and annually thereafter, the Secretary of 8
Natural Resources shall submit to the House Committee on Environment and 9
Energy and to the Senate Committee on Natural Resources and Energy a report 10
on annual losses and gains of significant wetlands in the State. The report shall 11
include: 12
(1) the location and acreage of Class II wetland and buffer losses 13
permitted by the Agency in accordance with section 913 of this title, for which 14
construction of the permitted project has commenced; 15
(2) the acreage of Class II wetlands and buffers gained through permit-16
related enhancement and restoration, and an estimate of wetlands gained 17
through wetlands, river, and floodplain restoration projects, including dam 18
removals; 19
(3) the number of site visits and technical assistance calls conducted by 20
the Agency of Natural Resources, the number of permits processed by the 21 BILL AS INTRODUCED H.412
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Agency, and any enforcement actions that were taken by the Agency or the 1
Office of the Attorney General in the previous year for violations of this 2
chapter; and 3
(4) an updated mitigation summary of the extent of wetlands restored 4
on-site compared with compensation performed off-site, in-lieu fees paid, or 5
conservation. 6
* * * 7
(c) On or before December 15, 2025, the Agency of Natural Resources 8
shall publish on its website and submit to the House Committee on 9
Environment and to the Senate Committee on Natural Resources and Energy 10
wetland guidance on the mitigation and compensation sequence contemplated 11
in the Vermont Wetland Rules subsections 9.5(b) and (c). The guidance shall 12
clearly identify the process applicants should follow and the information and 13
proof necessary to demonstrate a project has practicably avoided and 14
minimized wetland impacts and is eligible for mitigation during the State 15
wetland permit application process. 16
* * * Potable Water Supply and Wastewater System Connections * * * 17
Sec. 31. 10 V.S.A. § 1971 is amended to read: 18
§ 1971. PURPOSE 19
It is the purpose of this chapter to: 20 BILL AS INTRODUCED H.412
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VT LEG #380410 v.1
(1) establish a comprehensive program to regulate the construction, 1
replacement, modification, and operation of potable water supplies and 2
wastewater systems in the State in order to protect human health and the 3
environment, including potable water supplies, surface water, and 4
groundwater; 5
* * * 6
(6) allow delegation of the permitting program created by this chapter to 7
municipalities demonstrating the capacity to administer the chapter allow 8
delegation to municipalities of technical review of potable water supply and 9
wastewater system connections pursuant to the rules of the Agency adopted 10
under this chapter. 11
Sec. 32. 10 V.S.A. § 1972 is amended to read: 12
§ 1972. DEFINITIONS 13
For the purposes of this chapter: 14
* * * 15
(6) “Potable water supply” means the source, treatment, and conveyance 16
equipment used to provide water used or intended to be used for human 17
consumption, including drinking, washing, bathing, the preparation of food, or 18
laundering. This definition includes a service connection to a public water 19
system of any size that does not require a permit pursuant to Chapter 56 of this 20
title. This definition does not include any internal piping or plumbing, except 21 BILL AS INTRODUCED H.412
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for mechanical systems, such as pump stations and storage tanks or lavatories, 1
that are located inside a building or structure and that are integral to the 2
operation of a potable water system. This definition also does not include a 3
potable water supply that is subject to regulation under chapter 56 of this title. 4
* * * 5
(10) “Wastewater system” means any piping, pumping, treatment, or 6
disposal system used for the conveyance and treatment of sanitary waste or 7
used water, including carriage water, shower and wash water, and process 8
wastewater. This definition does not include any internal piping or plumbing, 9
except for mechanical systems, such as pump stations and storage tanks or 10
toilets, that are located inside a building or structure and that are integral to the 11
operation of a wastewater system. This definition also does not include 12
wastewater systems that are used exclusively for the treatment and disposal of 13
animal manure. In this chapter, “wastewater system” refers to a soil-based 14
disposal system of less than 6,500 gallons per day, or a sewerage sanitary 15
sewer collection system connection of any size. 16
Sec. 33. 10 V.S.A. § 1973 is amended to read: 17
§ 1973. PERMITS 18
(a) Except as provided in this section and sections 1974 and 1978 of this 19
title, a person shall obtain a permit from the Secretary before: 20
* * * 21 BILL AS INTRODUCED H.412
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(7) making a new or modified connection to a new or existing potable 1
water supply or wastewater system; or 2
* * * 3
(f)(1) The Secretary shall give deference to a certification by a licensed 4
designer with respect to the engineering design or judgment exercised by the 5
designer in order to minimize Agency review of certified designs. Nothing in 6
this section shall limit the responsibility of the licensed designer to comply 7
with all standards and rules, or the authority of the Secretary to review and 8
comment on design aspects of an application or to enforce Agency rules with 9
respect to the design or the design certification. 10
(2) The Secretary shall issue a permit for a new or modified connection 11
to a water main and a sewer main or indirect discharge system from a building 12
or structure in a designated downtown development district upon submission 13
of an application under subsection (b) of this section that consists solely of the 14
certification of a licensed designer, in accordance with subsection (d) of this 15
section, and a letter from the owner of the water main and sewer main or 16
indirect discharge system allocating the capacity needed to accommodate the 17
new or modified connection. However, this subdivision (2) shall not apply if 18
the Secretary finds one of the following: 19
(A) The Secretary has prohibited the system that submitted the 20
allocation letter from issuing new allocation letters due to a lack of capacity. 21 BILL AS INTRODUCED H.412
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(B) As a result of an audit of the application performed on a random 1
basis or in response to a complaint, the system is not designed in accordance 2
with the rules adopted under this chapter. 3
* * * 4
(k)(1) The Secretary shall adopt a general permit for municipal potable 5
water supply and wastewater system connections that are reviewed by 6
municipalities with authority delegated pursuant to section 1976 of this 7
chapter. 8
(2) The Secretary may adopt by rule general permitting program for 9
other activities permitted under this section. 10
Sec. 34. 10 V.S.A. § 1976 is amended to read: 11
§ 1976. DELEGATION OF CONNECTION AUTHORITY TO 12
MUNICIPALITIES 13
(a)(1) The Secretary may delegate to a municipality authority to: 14
(A) implement all sections of this chapter, except for sections 1975 15
and 1978 of this title; or 16
(B) implement permitting under this chapter for the subdivision of 17
land, a building or structure, or a campground when the subdivision, building 18
or structure, or campground is served by sewerage connections and water 19
service lines, provided that: 20 BILL AS INTRODUCED H.412
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(i) the lot, building or structure, or campground utilizes both a 1
sanitary sewer service line and a water service line; and 2
(ii) the water main and sanitary sewer collection line that the water 3
service line and sanitary sewer service line are connected to are owned and 4
controlled by the delegated municipality. 5
(2) If a municipality submits a written request for delegation of this 6
chapter, the Secretary shall delegate authority to the municipality to implement 7
and administer provisions of this chapter, the rules adopted under this chapter, 8
and the enforcement provisions of chapter 201 of this title relating to this 9
chapter, provided that the Secretary is satisfied that the municipality: 10
(A) has established a process for accepting, reviewing, and processing 11
applications and issuing permits, that shall adhere to the rules established by 12
the Secretary for potable water supplies and wastewater systems, including 13
permits, by rule, for sewerage connections; 14
(B) has hired, appointed, or retained on contract, or will hire, appoint, 15
or retain on contract, a licensed designer to perform technical work that must 16
be done by a municipality under this section to grant permits; 17
(C) will take timely and appropriate enforcement actions pursuant to 18
the authority of chapter 201 of this title; 19
(D) commits to reporting annually to the Secretary on a form and date 20
determined by the Secretary ; 21 BILL AS INTRODUCED H.412
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(E) will only issue permits for water service lines and sanitary sewer 1
service lines when there is adequate capacity in the public water supply system 2
source, wastewater treatment facility, or indirect discharge system; and 3
(F) will comply with all other requirements of the rules adopted under 4
section 1978 of this title The Secretary may delegate to a municipality 5
authority to conduct technical review of municipal potable water supply and 6
wastewater system connections provided that the water main and sanitary 7
sewer collection line that the water service line and sanitary sewer service line 8
are connected to are owned and controlled by the delegated municipality. 9
(2) If a municipality submits a request for delegation of authority under 10
this subsection, the Secretary shall delegate authority to the municipality to 11
implement and administer provisions of this chapter governing municipal 12
potable water supply and wastewater system connections provided that the 13
municipality: 14
(A) is qualified to perform the technical review as determined by the 15
Secretary; 16
(B) receives authorization from the municipal legislative body to 17
administer a program for review of potable water supply and wastewater 18
system connections; 19
(C) meets any other requirement for the delegation program as 20
adopted by the Secretary in writing; 21 BILL AS INTRODUCED H.412
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(D) will only issue permits for water service lines and sanitary sewer 1
service lines when there is adequate capacity in the public water system, 2
wastewater treatment facility, or indirect discharge system; and 3
(E) complies with the requirements for connection and all 4
requirements of the Agency’s rules adopted under section 1978 of this title. 5
* * * 6
(f) The Secretary may review municipal implementation of this section on 7
a random basis, or in response to a complaint, or on his or her the Secretary’s 8
own motion. This review may include consideration of the municipal 9
implementation itself, as well as consideration of the practices, testing 10
procedures employed, systems designed, system designs approved, installation 11
procedures used, and any work associated with the performance of these tasks. 12
Sec. 35. 3 V.S.A. § 2822(j) is amended to read: 13
(j) In accordance with subsection (i) of this section, the following fees are 14
established for permits, licenses, certifications, approvals, registrations, orders, 15
and other actions taken by the Agency of Natural Resources. 16
* * * 17
(4) For potable water supply and wastewater permits issued under 10 18
V.S.A. chapter 64. Projects under this subdivision include: a wastewater 19
system, including a sewerage sanitary sewer collection system connection; and 20
a potable water supply, including a connection to a public water supply system: 21 BILL AS INTRODUCED H.412
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(A) Original applications, or major amendments for a project with the 1
following proposed design flows. In calculating the fee, the highest proposed 2
design flow whether wastewater or water shall be used: 3
(i) design flows 560 gpd or less: $306.25 per application; 4
(ii) design flows greater than 560 and less than or equal to 2,000 5
gpd: $870.00 per application; 6
(iii) design flows greater than 2,000 and less than or equal to 7
6,500 gpd: $3,000.00 per application; 8
(iv) design flows greater than 6,500 and less than or equal to 9
10,000 gpd: $7,500.00 per application; 10
(v) design flows greater than 10,000 gpd: $13,500.00 per 11
application. 12
(B) Minor amendments: $150.00. 13
(C) Minor projects: $270.00. 14
As used in this subdivision (j)(4)(C), “minor project” means a project 15
that meets the following: there is an increase in design flow but no 16
construction is required; there is no increase in design flow, but construction is 17
required, excluding replacement potable water supplies and wastewater 18
systems; or there is no increase in design flow and no construction is required, 19
excluding applications that contain designs that require technical review. 20 BILL AS INTRODUCED H.412
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(D) Notwithstanding the other provisions of this subdivision (4), 1
when a project is located in a Vermont neighborhood, as designated under 24 2
V.S.A. chapter 76A, the fee shall be no not more than $50.00 in situations in 3
which the application has received an allocation for sewer capacity from an 4
approved municipal system. This limitation shall not apply in the case of fees 5
charged as part of a duly delegated municipal program. 6
(E) Projects permitted under a municipal potable water supply or 7
wastewater system connection general permit as established in 10 V.S.A. 8
§ 1973(i)(1) or as adopted by rule per 10 V.S.A. § 1973(i)(2): $500. 9
* * * 10
* * * Municipal Aid for Water Supply and Water Pollution Abatement and 11
Control * * * 12
Sec. 36. 10 V.S.A. § 1628 is amended to read: 13
§ 1628. PRIORITIES 14
(a) The Department shall make grant awards under this chapter to eligible 15
municipal water pollution abatement and control projects on the basis of need 16
as determined according to a system of priorities adopted by rule by the 17
Department and to the extent appropriate funds are available. The system of 18
priorities shall require consideration of criteria, including: 19
(1) whether a project is grant or loan eligible; 20 BILL AS INTRODUCED H.412
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(2) the condition of the waters affected by the project and whether the 1
waters are: 2
(A) not in compliance with the Vermont Water Quality Standards; or 3
(B) have a total maximum daily load (TMDL); 4
(3) whether the project will address water quality issues identified in a 5
basin plan; 6
(4) whether the project will abate or control pollution that is causing or 7
may cause a threat to public health; 8
(5) whether the project will address an emergency situation affecting or 9
constituting a threat to the environment or the public health, safety, or welfare; 10
(6) if the project repairs or replaces existing infrastructure, the condition 11
and integrity of such infrastructure; 12
(7) whether the project incorporates principles of environmental 13
resiliency or sustainability, including energy efficiency, which reduce the 14
environmental impacts of the project or a water pollution abatement and 15
control facility; 16
(8) the fiscal integrity and sustainability of the project, including 17
whether the project is a cost-effective alternative, when compared to other 18
alternatives; 19
(9) whether the project serves a designated center; 20 BILL AS INTRODUCED H.412
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(10) affordability factors for the municipality or municipalities in which 1
the project is located, including: 2
(A) median household income; 3
(B) unemployment rate; and 4
(C) population trends; and 5
(11) if the project removes a pollutant for which the water or waters 6
affected by the project are impaired, the cost-effectiveness of the project at 7
removing that pollutant. 8
(b) Notwithstanding any other provision of law, the demonstration 9
requirements of the Agency of Natural Resources, Department of 10
Environmental Conservation, Environmental Protection Rules, Chapter 2 - 11
Municipal Pollution Control Priority System, Subchapter 300, shall be met 12
when the municipality making application for funding under this chapter 13
certifies that the project shall include service for new housing units or 14
wastewater capacity shall be reserved for new housing units. 15
* * * Vermont Rental Housing Improvement Program * * * 16
Sec. 37. 10 V.S.A. § 699 is amended to read: 17
§ 699. VERMONT RENTAL HOUSING IMPROVEMENT PROGRAM 18
(a) Creation of Program. 19
* * * 20 BILL AS INTRODUCED H.412
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(5)(A) The Department may cooperate with and subgrant funds to State 1
agencies and governmental subdivisions and public and private organizations 2
in order to carry out the purposes of this subsection. 3
(B) Entities carrying out the provisions of this section, including 4
grantees, subgrantees, and contractors of the State, shall be exempt from the 5
provisions of 8 V.S.A. chapter 73 (licensed lenders, mortgage brokers, 6
mortgage loan originators, sales finance companies, and loan solicitation 7
companies). 8
* * * 9
(d) Program requirements applicable to grants and forgivable loans. 10
(1)(A) A grant or loan shall not exceed: 11
(i) $70,000.00 per unit, for rehabilitation or creation of an eligible 12
rental housing unit meeting the applicable building accessibility requirements 13
under the Vermont Access Rules; or 14
(ii) $50,000.00 per unit, for rehabilitation or creation of any other 15
eligible rental housing unit. Up to an additional $20,000.00 per unit may be 16
made available for specific elements that collectively bring the unit to the 17
visitable standard outlined in the rules adopted by the Vermont Access Board. 18
* * * 19 BILL AS INTRODUCED H.412
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(e) Program requirements applicable to grants and five-year forgivable 1
loans. For a grant or five-year forgivable loan awarded through the Program, 2
the following requirements apply for a minimum period of five years: 3
(1) A landlord shall coordinate with nonprofit housing partners and local 4
coordinated entry homelessness service organizations approved by the 5
Department to identify potential tenants. 6
(2)(A) Except as provided in subdivision (2)(B) of this subsection (e), a 7
landlord shall lease the unit to a household that is: 8
(i) exiting homelessness, including any individual under 25 years 9
of age who secures housing through a master lease held by a youth service 10
provider on behalf of individuals under 25 years of age; 11
(ii) actively working with an immigrant or refugee resettlement 12
program; or 13
(iii) composed of at least one individual with a disability who 14
receives or is eligible approved to receive Medicaid-funded home and 15
community based services or Social Security Disability Insurance; or 16
(iv) with approval from the Department in writing, an organization 17
that will hold a master lease that explicitly states the unit will be used in 18
service of the populations described in this subsection (e). 19
* * * 20 BILL AS INTRODUCED H.412
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(4)(A) A landlord may convert a grant to a forgivable loan upon 1
approval of the Department and the housing organization that approved the 2
grant. 3
(B) A landlord who converts a grant to a forgivable loan shall receive 4
a 10-percent prorated credit for loan forgiveness for each year in which the 5
landlord participates in the Program. 6
(f) Requirements applicable to 10-year forgivable loans. For a 10-year 7
forgivable loan awarded through the Program, the following requirements 8
apply for a minimum period of 10 years: 9
(1) A landlord shall coordinate with nonprofit housing partners and local 10
coordinated entry organizations to identify potential tenants The total cost of 11
rent for the unit, including utilities not covered by rent payments, shall not 12
exceed the applicable fair market rent established by the Department of 13
Housing and Urban Development, except that a landlord may accept a housing 14
voucher that exceeds fair market rent, if available. 15
(2)(A) Except as provided in subdivision (2)(B) of this subsection (f), a 16
landlord shall lease the unit to a household that is: 17
(i) exiting homelessness, including any individual under 25 years 18
of age who secures housing through a master lease held by a youth service 19
provider on behalf of individuals under 25 years of age; 20 BILL AS INTRODUCED H.412
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(ii) actively working with an immigrant or refugee resettlement 1
program; or 2
(iii) composed of at least one individual with a disability who is 3
eligible to receive Medicaid-funded home and community based services. 4
(B) If, upon petition of the landlord, the Department or the housing 5
organization that issued the grant determines that a household under 6
subdivision (2)(A) of this subsection (f) is not available to lease the unit, then 7
the landlord shall lease the unit: 8
(i) to a household with an income equal to or less than 80 percent 9
of area median income; or 10
(ii) if such a household is unavailable, to another household with 11
the approval of the Department or housing organization. 12
(3)(A) A landlord shall accept any housing vouchers that are available to 13
pay all, or a portion of, the tenant’s rent and utilities. 14
(B) If no housing voucher or federal or State subsidy is available, the 15
cost of rent for the unit, including utilities not covered by rent payments, shall 16
not exceed the applicable fair market rent established by the Department of 17
Housing and Urban Development. 18
(4) The Department shall forgive 10 percent of the amount of a 19
forgivable loan for each year a landlord participates in the loan program. 20
* * * 21 BILL AS INTRODUCED H.412
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(i) Creation of the Vermont Rental Housing Improvement Program 1
Revolving Fund. Funds repaid or returned to the Department from forgivable 2
loans or grants funded by the Program shall return to the Vermont Rental 3
Housing Improvement Revolving Fund to be used for Program expenditures 4
and administrative costs at the discretion of the Department. 5
* * * MHIR * * * 6
Sec. 38. 10 V.S.A. § 700 is added to read: 7
§ 700. VERMONT MANUFACTURED HOME IMPROVEMENT AND 8
REPAIR PROGRAM 9
(a) There is created within the Department of Housing and Community 10
Development the Manufactured Home Improvement and Repair Program. The 11
Department shall design and implement the Program to award funding to 12
statewide or regional nonprofit housing organizations, or both, to provide 13
financial assistance or awards to manufactured homeowners and manufactured 14
home park owners to improve existing homes, incentivize new slab placement 15
for prospective homeowners, and incentivize park improvements for infill of 16
more homes. 17
(b) The following projects are eligible for funding through the Program: 18
(1) The Department may award up to $20,000.00 to owners of 19
manufactured housing communities to complete small-scale capital needs to 20
help infill vacant lots with homes, including disposal of abandoned homes, lot 21 BILL AS INTRODUCED H.412
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grading and preparation, the siting and upgrading of electrical boxes, 1
enhancing E911 safety issues, transporting homes out of flood zones, and 2
improving individual septic systems. Costs awarded under this subdivision 3
may also cover legal fees and marketing to help make it easier for home-4
seekers to find vacant lots around the State. 5
(2) The Department may award funding to manufactured homeowners 6
for which the home is their primary residence to address habitability and 7
accessibility issues to bring the home into compliance with safe living 8
conditions. 9
(3) The Department may award up to $15,000.00 per grant to a 10
homeowner to pay for a foundation or federal Department of Housing and 11
Urban Development approved slab, site preparation, skirting, tie-downs, and 12
utility connections on vacant lots within a manufactured home community. 13
(c) The Department may adopt rules, policies, and guidelines to aid in 14
enacting the Program. 15
* * * Tax Increment Financing * * * 16
Sec. 39. 24 V.S.A. chapter 53, subchapter 7 is added to read: 17
SUBCHAPTER 7. Strategic Projects for Advancing Rural Communities 18
§ 1907. DEFINITIONS 19
As used in this subchapter: 20 BILL AS INTRODUCED H.412
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(1) “Committed” means pledged and appropriated for the purpose of the 1
current and future payment of financing and related costs. 2
(2) “Community agreement” means a binding legal contract negotiated 3
between a municipality and a person to initiate a SPARC project on behalf of 4
the municipality. 5
(3) “Community investment partner” means a person who enters into a 6
community agreement with a municipality. 7
(4) “Coordinating agency” means any public or private entity from 8
outside a municipality’s departments or offices and not employing the 9
municipality’s staff that has been designated by the municipality to administer 10
and coordinate a SPARC project during creation, public hearing process, 11
approval process, or administration and operation of the SPARC project, 12
including overseeing infrastructure development, real property development 13
and redevelopment, assisting with reporting, and ensuring compliance with 14
statute and rule. 15
(5) “Financing” means debt incurred, including principal, interest, and 16
any fees or charges directly related to that debt, or other instruments or 17
borrowing used by a municipality to pay for an approved SPARC project and 18
related costs for the SPARC project. Payment for related costs may also 19
include direct payment by the municipality consistent with the terms of the 20
community agreement. 21 BILL AS INTRODUCED H.412
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(6) “Improvements” means the installation, new construction, or 1
reconstruction of infrastructure or development that will serve a public 2
purpose, including housing, flood resiliency, flood mitigation, brownfield 3
remediation, utilities, digital infrastructure, transportation, public recreation, 4
commercial and industrial facilities, public facilities and amenities, land and 5
property acquisition and demolition, and site preparation. For remediation of a 6
brownfield, this shall include the cost of the site preparation needed to 7
stimulate development or redevelopment in the SPARC site as identified in 8
clean-up documentation approved by the Vermont Agency of Natural 9
Resources. “Improvements” also means the funding of debt service interest 10
payments. 11
(7) “Legislative body” means the mayor and alderboard, the city 12
council, the selectboard, and the president and trustees of an incorporated 13
village, as appropriate. 14
(8) “Municipality” means a city, town, or incorporated village. 15
(9) “Original taxable value” means the total valuation as determined in 16
accordance with 32 V.S.A. chapter 129 of all taxable real property located 17
within the SPARC site as of the creation date, provided that no parcel within 18
the project shall be divided or bisected. 19
(10) “Related costs” means expenses incurred and paid by the 20
municipality or a community investment partner consistent with the 21 BILL AS INTRODUCED H.412
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community agreement, exclusive of the actual cost of constructing and 1
financing improvements, that are directly related to the creation and 2
implementation of the SPARC project, including reimbursement of sums 3
previously advanced by the municipality or a community investment partner 4
for those purposes and use of a coordinating agency. Related costs do not 5
include direct municipal or community investment partner expenses such as 6
departmental or personnel costs. 7
(11) “SPARC project” means an improvement, as defined in subdivision 8
(6) of this section (a). A SPARC project must meet one of the following six 9
criteria: 10
(A) The development will improve flood resiliency by protecting the 11
functions of watersheds, adapting critical infrastructure, or enhancing 12
emergency preparedness. 13
(B) The development will include the purchase and improvement of 14
flood-prone property or mitigate flood damage by elevating, floodproofing or 15
relocating existing structures or creating new, elevated, comparable structures. 16
(C) The development includes new or rehabilitated housing. 17
(D) The SPARC project will affect the remediation and 18
redevelopment of a brownfield. As used in this subchapter, “brownfield” 19
means an area in which a hazardous substance, pollutant, or contaminant is or 20 BILL AS INTRODUCED H.412
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may be present, and that situation is likely to complicate the expansion, 1
development, redevelopment, or reuse of the property. 2
(E) The development will include at least one entirely new business 3
or business operation or expansion of an existing business within the SPARC 4
site, and this business will provide new, quality, full-time jobs that meet or 5
exceed the prevailing wage for the region as reported by the Department of 6
Labor. 7
(F) The development will enhance transportation and public 8
recreation by creating improved traffic patterns and flow or creating or 9
improving public transportation systems, including development of 10
recreational trail systems. 11
(11) “SPARC site” means an area and adjoining parcels where approved 12
development or redevelopment is occurring. 13
§ 1908. PROGRAM CREATION; GENERAL AUTHORITY; OPERATION 14
(a) Program. The Vermont Economic Progress Council is authorized to 15
approve SPARC projects and to finance municipal investments within a 16
SPARC site or to provide financing to a community investment partner 17
consistent with the terms of the community agreement. 18
(b) General authority. Under the program established in subsection (a) of 19
this section, a municipality, upon approval of the community agreement by its 20 BILL AS INTRODUCED H.412
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legislative body, may apply to the Vermont Economic Progress Council to use 1
financing for a SPARC project. 2
(c) Approval process. The Vermont Economic Progress Council shall do 3
all of the following to approve an application: 4
(1) Application review. 5
(A) Review each application to determine that the improvements 6
proposed to serve the SPARC site and the proposed development in the 7
SPARC site would not have occurred as proposed in the application or would 8
have occurred in a significantly different and less desirable manner than as 9
proposed in the application, but for the proposed utilization of the incremental 10
tax revenues. 11
(B) The review shall take into account: 12
(i) the amount of additional time, if any, needed to complete the 13
proposed development within the SPARC site and the amount of additional 14
cost that might be incurred if the SPARC project were to proceed without 15
financing; 16
(ii) the lack of new construction in the municipality, indicated by a 17
stagnant or declining grand list value as determined by the Department of 18
Taxes, considering both the total full listed value and the equalized education 19
grand list value, or the documented need for housing in the municipality as 20
stated in the most recent housing needs assessment; and 21 BILL AS INTRODUCED H.412
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(iii)(I) the amount of additional revenue expected to be generated 1
as a result of the proposed SPARC project; 2
(II) the sufficiency of that incremental revenue to cover the 3
incurred debt; 4
(III) the percentage of that revenue that shall be paid to the 5
Education Fund; 6
(IV) the percentage that shall be paid to the municipality; and 7
(V) the percentage of the revenue paid to the municipality that 8
shall be used to pay financing incurred for development of the SPARC project 9
and related costs. 10
(2) Process requirements. Determine that each application meets all of 11
the following requirements: 12
(A) The municipality held public hearings and established a SPARC 13
site. 14
(B) The municipality has developed a SPARC financing plan, 15
including a project description; a development financing plan; a pro forma 16
projection of expected costs; a projection of revenues; evidence that the 17
municipality is actively seeking or has obtained other sources of funding and 18
investment; and a development schedule that includes a list, a cost estimate, 19
and a schedule for public improvements and projected private development to 20
occur as a result of the improvements. The life of the project begins at 12:01 21 BILL AS INTRODUCED H.412
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a.m. on April 1 of the calendar year the Vermont Economic Progress Council 1
approves the SPARC project plan according to the terms set forth in 2
subdivision (f)(3) and subsection (g) of this section. 3
(C) The municipality has approved or pledged the utilization of 4
incremental municipal tax revenues for the purposes of the SPARC project in 5
the proportion set forth in subdivision (g)(2) of this section. 6
(3) The Vermont Economic Progress Council shall determine there is a 7
relationship between the improvement and the expected development and 8
redevelopment for the SPARC project and expected outcomes. 9
(d) Incurring indebtedness. 10
(1) A municipality approved under the process set forth in subsection (c) 11
of this section may incur indebtedness against revenues of the SPARC site to 12
provide funding to pay for improvements and related costs for the SPARC 13
project development. 14
(2) Notwithstanding any provision of any municipal charter, the 15
municipality shall only require one authorizing vote to incur debt through one 16
instance of borrowing to finance or otherwise pay for the tax increment 17
financing project improvements and related costs; provided, however, that a 18
municipality may present one or more subsequent authorization votes in the 19
event a vote fails. The municipality shall be authorized to incur indebtedness 20
only after the legal voters of the municipality, by a majority vote of all voters 21 BILL AS INTRODUCED H.412
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present and voting on the question at a special or annual municipal meeting 1
duly warned for the purpose, authorize the legislative body to pledge the credit 2
of the municipality, borrow, or otherwise secure the debt for the specific 3
purposes so warned. 4
(3) Any indebtedness shall be incurred within five years following the 5
date of approval by the Vermont Economic Progress Council. A bond 6
anticipation note is not considered a first or last incurrence of debt. The 7
Vermont Economic Progress Council may extend the period of time to incur 8
debt for a period not to exceed three years. 9
(4) A municipal legislative body shall provide information to the 10
public prior to the public vote required under subdivision (2) of this subsection. 11
This information shall include the amount and types of debt and related costs 12
to be incurred, including principal, interest, and fees; terms of the debt; the 13
improvements to be financed; the expected development to occur because of 14
the improvements; and notice to the voters that if the tax increment received by 15
the municipality from any property tax source is insufficient to pay the 16
principal and interest on the debt in any year, for whatever reason, including a 17
decrease in property value or repeal of a State property tax source, unless 18
determined otherwise at the time of such repeal, the municipality shall remain 19
liable for the full payment of the principal and interest for the term of 20
indebtedness. If interfund loans within the municipality are used, the 21 BILL AS INTRODUCED H.412
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information must also include documentation of the terms and conditions of 1
such loan. If interfund loans within the municipality are used as a method of 2
financing, no interest shall be charged. 3
(e) Original taxable value. As of the date the project is approved by the 4
Vermont Economic Progress Council, the lister or assessor for the municipality 5
shall certify the original taxable value and shall certify to the Vermont 6
Economic Progress Council in each year thereafter during the life of the 7
SPARC site the amount by which the total valuation as determined in 8
accordance with 32 V.S.A. chapter 129 of all taxable real property located 9
within the SPARC site has increased or decreased relative to the original 10
taxable value. 11
(f) Incremental community enhancements. 12
(1) In each year following the approval of the SPARC site, the lister or 13
assessor shall include not more than the original taxable value of the real 14
property in the assessed valuation upon which the treasurer computes the rates 15
of all taxes levied by the municipality and every other taxing district in which 16
the SPARC site is situated, but the treasurer shall extend all rates so 17
determined against the entire assessed valuation of real property for that year. 18
In each year, the municipality shall hold apart, rather than remit to the taxing 19
districts, that proportion of all taxes paid that year on the real property within 20
the SPARC site that the excess valuation bears to the total assessed valuation. 21 BILL AS INTRODUCED H.412
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The amount held apart each year is the “incremental community enhancement” 1
for that year. Not more than the percentages established pursuant to subsection 2
(g) of this section of the municipal and State education tax increments received 3
with respect to the SPARC site and committed for the payment for financing 4
for improvements and related costs shall be segregated by the municipality in a 5
special SPARC financing project account and in its official books and records 6
until all capital indebtedness of the project has been fully paid. The final 7
payment shall be reported to the treasurer, who shall thereafter include the 8
entire assessed valuation of the SPARC site in the assessed valuations upon 9
which municipal and other tax rates are computed and extended and thereafter 10
no taxes from the SPARC site shall be deposited in the SPARC site’s SPARC 11
financing project account. 12
(2) In each year, a municipality shall remit not less than the aggregate 13
tax due on the original taxable value to the Education Fund. 14
(3) Notwithstanding any charter provision or other provision, all 15
property taxes assessed within a SPARC site shall be subject to the provision 16
of subdivision (1) of this subsection. Special assessments levied under chapter 17
76A or 87 of this title or under a municipal charter shall not be considered 18
property taxes for the purpose of this section if the proceeds are used 19
exclusively for operating expenses related to properties within the SPARC site. 20 BILL AS INTRODUCED H.412
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(4) Amounts held apart under subdivision (1) of this subsection shall 1
only be used for financing and related costs as defined in section 1907 of this 2
subchapter. 3
(g) Use of incremental community enhancement. 4
(1) Use of the education property tax increment. For only debt incurred 5
within the period permitted under subdivision (d)(3) of this section after 6
approval of the project, up to 100 percent of the education tax increment may 7
be retained to service the debt and related costs, beginning with the first year in 8
which debt is incurred for the SPARC project. Upon incurring the first debt, a 9
municipality shall notify the Department of Taxes and the Vermont Economic 10
Progress Council of the beginning of the retention period of the education tax 11
increment. 12
(2) Use of the municipal property tax increment. For only debt incurred 13
within the period permitted under subdivision (d)(3) of this section after 14
approval of the project, not less than 100 percent of the municipal tax 15
increment shall be retained to service the debt and related costs, beginning the 16
first year in which debt is incurred for the project. 17
(3) Retention period. Retention of tax increment shall continue until all 18
debt is retired. 19
(h) Distribution. Of the municipal and education tax increments received 20
in any tax year that exceed the amounts committed for the payment of the 21 BILL AS INTRODUCED H.412
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financing for improvements and related costs for the SPARC project, equal 1
portions of each increment may be retained for the following purposes: 2
prepayment of principal and interest on the financing, placed in a special 3
account required by subdivision (f)(1) of this section and used for future 4
financing payments, or used for defeasance of the financing. Any remaining 5
portion of the excess municipal tax increment shall be distributed to the city, 6
town, or village budget, in the proportion that each budget bears to the 7
combined total of the budgets, unless otherwise negotiated by the city, town, or 8
village, and any remaining portion of the excess education tax increment shall 9
be distributed to the Education Fund. 10
(i) Information reporting. A municipality with a SPARC project approved 11
pursuant to this section shall: 12
(1) Develop a system, segregated for the SPARC project, to identify, 13
collect, and maintain all data and information necessary to fulfill the reporting 14
requirements of this section, including performance measures as outlined in the 15
community agreement. 16
(2) Provide, as required by events, notification to the Vermont 17
Economic Progress Council and the Department of Taxes regarding any 18
SPARC project debt obligations, public votes, or votes by the municipal 19
legislative body immediately following such obligation or vote on a form 20
prescribed by the Council, including copies of public notices, agendas, 21 BILL AS INTRODUCED H.412
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minutes, vote tally, and a copy of the information provided to the public in 1
accordance with subdivision (d)(4) of this section. 2
(3) Ensure that the SPARC financing project account required by 3
subdivision (f)(1) of this section is subject to the annual audit prescribed in 4
subsection (j) of this section. Procedures shall include verification of the 5
original taxable value and annual and total municipal and education tax 6
increments generated, expenditures for debt and related costs, and current 7
balance. 8
(j) Audit; financial reports. Annually on or before April 1, until the year 9
following the end of the period for retention of education tax increment, a 10
municipality with a SPARC project approved under this section shall ensure 11
that the SPARC project is subject to the annual audit prescribed in sections 12
1681 and, if applicable, 1690 of this title and submit a copy of the audit report 13
to the Vermont Economic Progress Council. In the event that the SPARC 14
project is only subject to the audit under section 1681 of this title, the Vermont 15
Economic Progress Council shall ensure a process is in place to subject the 16
SPARC project to an independent audit. Procedures for the audit must include 17
verification of the original taxable value and annual and total municipal and 18
education tax increments generated, expenditures for debt and related costs, 19
and current balance. 20 BILL AS INTRODUCED H.412
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(k) Authority to issue decisions. The Vermont Economic Progress Council, 1
after reasonable notice to a municipality, is authorized to issue decisions to a 2
municipality on questions and inquiries concerning the administration of 3
SPARC projects, statutes, rules, noncompliance with this section, and any 4
instances of noncompliance. The Vermont Economic Progress Council shall 5
deliberate and vote and may consult with the Commissioner of Taxes, the 6
Attorney General, and the State Treasurer. 7
Sec. 40. 24 V.S.A. § 1891 is amended to read: 8
§ 1891. DEFINITIONS 9
As used in this subchapter: 10
* * * 11
(4) “Improvements” means the installation, new construction, or 12
reconstruction of infrastructure or municipal capital assets that will serve a 13
public purpose and fulfill the purpose of tax increment financing districts as 14
stated in section 1893 of this subchapter, including utilities, transportation, 15
public facilities and amenities, land and property acquisition and demolition, 16
and site preparation. “Improvements” also means the funding of debt service 17
interest payments for a period of up to two four years, beginning on the date on 18
which the first debt is incurred. 19
* * * 20 BILL AS INTRODUCED H.412
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(7) “Financing” means debt incurred, including principal, interest, and 1
any fees or charges directly related to that debt, or other instruments or 2
borrowing used by a municipality to pay for improvements in a tax increment 3
financing district, only if authorized by the legal voters of the municipality in 4
accordance with section 1894 of this subchapter. Payment for the cost of 5
district improvements may also include direct payment by the municipality 6
using the district increment. However, such payment is also subject to a vote 7
by the legal voters of the municipality in accordance with section 1894 of this 8
subchapter and, if not included in the tax increment financing plan approved 9
under subsection 1894(d) of this subchapter, is also considered a substantial 10
change and subject to the review process provided by subdivision 1901(2)(B) 11
of this subchapter. If interfund loans within the municipality are used as the 12
method of financing, no interest shall be charged. Bond anticipation notes may 13
be used as a method of financing; provided, however, that bond anticipation 14
notes shall not be considered a first or last incurrence of debt pursuant to 15
subsection 1894(a) of this subchapter. 16
* * * 17
Sec. 41. 24 V.S.A. § 1892 is amended to read: 18
§ 1892. CREATION OF DISTRICT 19
* * * 20 BILL AS INTRODUCED H.412
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(b) When adopted by the act of the legislative body of that municipality, 1
the plan shall be recorded with the municipal clerk and lister or assessor. The 2
plan shall be presented to the Vermont Economic Progress Council for 3
approval, and the creation of the district shall occur at 12:01 a.m. on April 1 of 4
the calendar year so voted by the municipal legislative body Vermont 5
Economic Progress Council. 6
* * * 7
(e) On or before January 15, 2018, the Joint Fiscal Office, with the 8
assistance of the consulting Legislative Economist, the Department of Taxes, 9
the State Auditor, and the Agency of Commerce and Community Development 10
in consultation with the Vermont Economic Progress Council, shall examine 11
and report to the General Assembly on the use of both tax increment financing 12
districts and other policy options for State assistance to municipalities for 13
funding infrastructure in support of economic development and the capacity of 14
Vermont to utilize TIF districts moving forward. [Repealed.] 15
(f) The report shall include: 16
(1) a recommendation for a sustainable statewide capacity level for TIFs 17
or comparable economic development tools and relevant permitting criteria; 18
(2) the positive and negative impacts on the State’s fiscal health of TIFs 19
and other tools, including the General Fund and Education Fund; 20 BILL AS INTRODUCED H.412
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(3) the economic development impacts on the State of TIFs and other 1
tools, both positive and negative; 2
(4) the mechanics for ensuring geographic diversity of TIFs or other 3
tools throughout the State; and 4
(5) the parameters of TIFs and other tools in other states. [Repealed.] 5
* * * 6
Sec. 42. 24 V.S.A. § 1894(a) is amended to read: 7
(a) Incurring indebtedness. 8
(1) A municipality approved under 32 V.S.A. § 5404a(h) may incur 9
indebtedness against revenues of the tax increment financing district at any 10
time during a period of up to five years following the creation of the district. If 11
no debt is incurred during this five-year period, the district shall terminate, 12
unless the Vermont Economic Progress Council grants an extension to a 13
municipality pursuant to subsection (d) of this section. However, if any 14
indebtedness is incurred within the first five years after the creation of the 15
district, then the district has a total of ten years after the creation of the district 16
to incur any additional debt. 17
(2) Any indebtedness incurred under subdivision (1) of this subsection 18
may be retired over any period authorized by the legislative body of the 19
municipality. 20 BILL AS INTRODUCED H.412
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(3) The district shall continue until the date and hour the indebtedness is 1
retired or, if no debt is incurred, five years following the creation of the 2
district. 3
(4) Indebtedness is incurred upon final execution of a debt instrument. 4
Sec. 43. 24 V.S.A. § 1896 is amended to read: 5
§ 1896. TAX INCREMENTS 6
(a) In each year following the creation of the district, the listers or assessor 7
shall include not more than the original taxable value of the real property in the 8
assessed valuation upon which the treasurer computes the rates of all taxes 9
levied by the municipality and every other taxing district in which the tax 10
increment financing district is situated; but the treasurer shall extend all rates 11
so determined against the entire assessed valuation of real property for that 12
year. In each year, the municipality shall hold apart, rather than remit to the 13
taxing districts, that proportion of all taxes paid that year on the real property 14
in the district that the excess valuation bears to the total assessed valuation. 15
The amount held apart each year is the “tax increment” for that year. Not more 16
than the percentages established pursuant to section 1894 of this subchapter of 17
the municipal and State education tax increments received with respect to the 18
district and committed for the payment for financing for improvements and 19
related costs shall be segregated by the municipality in a special tax increment 20
financing account and in its official books and records until all capital 21 BILL AS INTRODUCED H.412
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indebtedness of the district financed through education tax increment has been 1
fully paid. The final payment shall be reported to the treasurer, who shall 2
thereafter include the entire assessed valuation of the district in the assessed 3
valuations upon which municipal and other tax rates are computed and 4
extended and thereafter no taxes from the district shall be deposited in the 5
district’s tax increment financing account. 6
* * * 7
Sec. 44. 24 V.S.A. § 1898 is amended to read: 8
§ 1898. POWERS SUPPLEMENTAL; CONSTRUCTION 9
* * * 10
(b) A municipality shall have power to issue from time to time general 11
obligation bonds, revenue bonds, or revenue bonds also backed by the 12
municipality’s full faith and credit in its discretion to finance the undertaking 13
of any improvements wholly or partly within such district. If revenue bonds 14
are issued, such bonds shall be made payable, as to both principal and interest, 15
solely from the income proceeds, revenues, tax increments, and funds of the 16
municipality derived from or held in connection with its undertaking and 17
carrying out of improvements under this chapter. 18
(c) Bonds issued under the provisions of this chapter are declared to be 19
issued for an essential public and governmental purpose. 20 BILL AS INTRODUCED H.412
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(d) Bonds issued under this section shall be authorized by resolution or 1
ordinance of the local governing body and may be payable upon demand or 2
mature at such time or times, bear interest at such rate or rates, be in such 3
denomination or denominations, be in registered form, carry such conversion 4
or registration privileges, have such rank or priority, be executed in such 5
manner, be payable in such medium or payment, at such place or places, and 6
be subject to such terms of redemption, such other characteristics, as may be 7
provided by such resolution or trust indenture or mortgage issued pursuant 8
thereto. 9
(e) [Repealed.] 10
(f) Such bonds may be sold at not less than par at public or private sales 11
held after notice published prior to such sale in a newspaper having a general 12
circulation in the municipality. If bonds are sold above par or a bond premium 13
is generated, the proceeds shall not be used for improvements until the 14
additional amount has been approved by the Vermont Economic Progress 15
Council by filing a substantial change request. 16
* * * 17
Sec. 45. 32 V.S.A. § 5404a is amended to read: 18
§ 5404a. TAX STABILIZATION AGREEMENTS; TAX INCREMENT 19
FINANCING DISTRICTS 20
* * * 21 BILL AS INTRODUCED H.412
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(f) A municipality that establishes a tax increment financing district under 1
24 V.S.A. chapter 53, subchapter 5 shall collect all property taxes on properties 2
contained within the district and apply not more than 70 percent of the State 3
education property tax increment, and not less than 85 percent of the municipal 4
property tax increment, to repayment of financing of the improvements and 5
related costs for up to 20 years pursuant to 24 V.S.A. § 1894, if approved by 6
the Vermont Economic Progress Council pursuant to this section, subject to the 7
following: 8
(1) In a municipality with one or more approved districts, the Council 9
shall not approve an additional district until the municipality retires the debt 10
incurred for all of the districts in the municipality. [Repealed.] 11
(2) The Council shall not approve more than six districts in the State, 12
and not more than two per county, provided: 13
(A) The districts listed in 24 V.S.A. § 1892(d) shall not be counted 14
against the limits imposed in this subdivision (2). 15
(B) The Council shall consider complete applications in the order 16
they are submitted, except that if during any calendar month the Council 17
receives applications for more districts than are actually available in a county, 18
the Council shall evaluate each application and shall approve the application 19
that, in the Council’s discretion, best meets the economic development needs 20
of the county. [Repealed.] 21 BILL AS INTRODUCED H.412
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(3)(A) A municipality shall immediately notify the Council if it resolves 1
not to incur debt for an approved district within five years of approval or a 2
five-year extension period as required in 24 V.S.A. § 1894. 3
(B) Upon receiving notification pursuant to subdivision (A) of this 4
subdivision (3), the Council shall terminate the district and may approve a new 5
district, subject to the provisions of this section and 24 V.S.A. chapter 53, 6
subchapter 5. 7
* * * 8
(h) To approve utilization of incremental revenues pursuant to subsection 9
(f) of this section, the Vermont Economic Progress Council shall do all the 10
following: 11
* * * 12
(3) Location criteria. Determine that each application meets at least two 13
of the following three four criteria: 14
(A) The development is: 15
(i) compact; 16
(ii) high density; or 17
(iii) located in or near existing industrial areas. 18
(B) The proposed district is within an approved growth center, 19
designated downtown, designated village center, new town center, or 20
neighborhood development area. 21 BILL AS INTRODUCED H.412
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(C) The development will occur in an area that is economically 1
distressed, which for the purposes of this subdivision means that the 2
municipality in which the area is located has at least one of the following: 3
(i) a median family income that is not more than 80 percent of the 4
statewide median family income as reported by the Vermont Department of 5
Taxes for the most recent year for which data are available; 6
(ii) an annual average unemployment rate that is at least one 7
percent greater than the latest annual average statewide unemployment rate as 8
reported by the Vermont Department of Labor; or 9
(iii) a median sales price for residential properties under six acres 10
that is not more than 80 percent of the statewide median sales price for 11
residential properties under six acres as reported by the Vermont Department 12
of Taxes. 13
(D) The development will occur in an area wholly or partially exempt 14
from Act 250 jurisdiction codified in 10 V.S.A. § 6081. 15
(4) Project criteria. Determine that the proposed development within a 16
tax increment financing district will accomplish at least three of the following 17
five six criteria: 18
(A) The development within the tax increment financing district 19
clearly requires substantial public investment over and above the normal 20
municipal operating or bonded debt expenditures. 21 BILL AS INTRODUCED H.412
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(B) The development includes new or rehabilitated affordable 1
housing, as defined in 24 V.S.A. § 4303. 2
(C) The project will affect the remediation and redevelopment of a 3
brownfield located within the district. As used in this section, “brownfield” 4
means an area in which a hazardous substance, pollutant, or contaminant is or 5
may be present, and that situation is likely to complicate the expansion, 6
development, redevelopment, or reuse of the property. 7
(D) The development will include at least one entirely new business 8
or business operation or expansion of an existing business within the district, 9
and this business will provide new, quality, full-time jobs that meet or exceed 10
the prevailing wage for the region as reported by the Department of Labor. 11
(E) The development will enhance transportation by creating 12
improved traffic patterns and flow or creating or improving public 13
transportation systems. 14
(F) The project will mitigate flood risks within a flood-prone area or 15
will relocate development previously destroyed by flooding from a flood-prone 16
area to another area within the municipality where flood risks are significantly 17
lower. As used in this section, “flood-prone area” means an area in which 18
significant residential or commercial property lies within the floodplain. 19
* * * 20 BILL AS INTRODUCED H.412
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(l) The State Auditor of Accounts shall conduct performance audits of all 1
tax increment financing districts. The cost of conducting each audit shall be 2
considered a “related cost” as defined in 24 V.S.A. § 1891(6) and shall be 3
billed back to the municipality pursuant to subsection 168(b) of this title borne 4
by the State Auditor of Accounts and shall be included in the State Auditor of 5
Accounts’ annual budget request. Audits conducted pursuant to this subsection 6
shall include a review of a municipality’s adherence to relevant statutes and 7
rules adopted by the Vermont Economic Progress Council pursuant to 8
subsection (j) of this section, an assessment of record keeping related to 9
revenues and expenditures, and a validation of the portion of the tax increment 10
retained by the municipality and used for debt repayment and the portion 11
directed to the Education Fund. 12
* * * 13
* * * Tax Value Freeze * * * 14
Sec. 46. 32 V.S.A. § 3870 is amended to read: 15
§ 3870. DEFINITIONS 16
As used in this subchapter: 17
* * * 18
(7)(A) “Qualifying property” means a parcel with a structure that is: 19
* * * 20 BILL AS INTRODUCED H.412
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(iii) undergoing, has undergone, or will undergo qualifying 1
improvements; and 2
(iv) in compliance with all relevant permitting requirements; and 3
(v) located in an area that was declared a federal disaster between 4
July 1, 2023 and October 15, 2023 that was eligible for Individual Assistance 5
from the Federal Emergency Management Agency or located in Addison or 6
Franklin County. 7
* * * 8
Sec. 47. 32 V.S.A. § 3871 is amended to read: 9
§ 3871. EXEMPTION 10
* * * 11
(d) Exemption period. 12
* * * 13
(2) An exemption under this subchapter shall remain in effect for three 14
five years, provided the property continues to comply with the requirements of 15
this subchapter. When the exemption period ends, the property shall be taxed 16
at its most recently appraised grand list value. 17
* * * 18
* * * Vermont Infrastructure Sustainability Fund * * * 19
Sec. 48. 24 V.S.A. chapter 119, subchapter 6 is amended to read: 20
Subchapter 6. Special Funds 21 BILL AS INTRODUCED H.412
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* * * 1
§ 4686. VERMONT INFRASTRUCTURE SUSTAINABILITY FUND 2
(a) Creation. There is created the Vermont Infrastructure Sustainability 3
Fund within the Vermont Bond Bank. 4
(b) Purpose. The purpose of the Fund is to provide capital to extend and 5
increase capacity of water and sewer service and other public infrastructure in 6
municipalities where lack of extension or capacity is a barrier to housing 7
development. 8
(c) Administration. The Vermont Bond Bank may administer the Fund in 9
coordination with and support from other State agencies, government 10
component parts, and quasi-governmental agencies. 11
(d) Program parameters. 12
(1) The Vermont Bond Bank, in consultation with the Department of 13
Housing and Community Development, shall develop program guidelines to 14
effectively implement the Fund. 15
(2) The program shall provide low-interest loans or bonds to 16
municipalities to expand infrastructure capacity. Eligible activities include: 17
(A) preliminary engineering and planning; 18
(B) engineering design and bid specifications; 19
(C) construction for municipal waster and wastewater systems; 20 BILL AS INTRODUCED H.412
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(D) transportation investments, including those required by municipal 1
regulation, the municipality’s official map, designation requirements, or other 2
planning or engineering identifying complete streets and transportation and 3
transit related improvements, including improvements to existing streets; and 4
(E) other eligible activities as determined by the guidelines produced 5
by the Vermont Bond Bank in consultation with the Department of Housing 6
and Community Development. 7
(e) Application Requirements. Eligible project applications shall 8
demonstrate: 9
(1) the project will create reserve capacity necessary for new housing 10
unit development; 11
(2) the project has a direct link to housing unit production; and 12
(3) the municipality has a commitment to own and operate the project 13
throughout its useful life. 14
(f) Application Criteria. In addition to any criteria developed in the 15
program guidelines, project applications shall be evaluated using the following 16
criteria: 17
(1) whether there is a direct connection to proposed or in-progress 18
housing development with demonstrable progress toward regional housing 19
targets; 20 BILL AS INTRODUCED H.412
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(2) whether the project is an expansion of an existing system and the 1
proximity to a designated area; 2
(3) the project readiness and estimated time until the need for financing; 3
(4) the ranking of the community on the Vermont Department of 4
Finance and Management, Vermont Community Index; and 5
(5) the demonstration of financing for project completion or completion 6
of a project component. 7
(g) Award terms. The Vermont Bond Bank, in consultation with the 8
Department of Housing and Community Development, shall establish award 9
terms that may include: 10
(1) the maximum loan or bond amount; 11
(2) the maximum term of the loan or bond amount; 12
(3) the time by which amortization shall commence; 13
(4) the maximum interest rate; 14
(5) whether the loan is eligible for forgiveness and to what percentage or 15
amount; 16
(6) the necessary security for the loan or bond; and 17
(7) any additional covenants encumbering the improved properties to 18
further secure the loan or bond. 19 BILL AS INTRODUCED H.412
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(h) Revolving fund. Any funds repaid or returned from the Infrastructure 1
Sustainability Fund shall be deposited into the Fund and used to continue the 2
program established in this section. 3
* * * Tax Department Housing Data Access * * * 4
Sec. 49. 32 V.S.A. § 5404 is amended to read: 5
§ 5404. DETERMINATION OF EDUCATION PROPERTY TAX GRAND 6
LIST 7
* * * 8
(b) Annually, on or before August 15, the clerk of a municipality, or the 9
supervisor of an unorganized town or gore, shall transmit to the Director in an 10
electronic or other format as prescribed by the Director: education and 11
municipal grand list data, including exemption information and grand list 12
abstracts; tax rates; an extract of the assessor database also referred to as a 13
Computer Assisted Mass Appraisal (CAMA) system or Computer Assisted 14
Mass Appraisal database; and the total amount of taxes assessed in the town or 15
unorganized town or gore. The data transmitted shall identify each parcel by a 16
parcel identification number assigned under a numbering system prescribed by 17
the Director. Municipalities may continue to use existing numbering systems 18
in addition to, but not in substitution for, the parcel identification system 19
prescribed by the Director. If changes or additions to the grand list are made 20 BILL AS INTRODUCED H.412
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by the listers or other officials authorized to do so after such abstract has been 1
so transmitted, such clerks shall forthwith certify the same to the Director. 2
* * * 3
* * * Vermont Community Development Program Environmental Review * * 4
* 5
Sec. 50. 10 V.S.A. chapter 29, subchapter 1 is amended to read: 6
Subchapter 1. Community Development Act 7
* * * 8
§ 690b. ENVIRONMENTAL REVIEW SERVICES 9
(a) All agencies, departments, and component parts of the State, federal 10
entities, and nonstate entities such as nonprofit and privately held companies 11
that receive services from the Vermont Department of Housing and 12
Community Development for projects funded in whole or in part by the federal 13
Department of Housing and Urban Development or other federal funding 14
requiring environmental review pursuant to 24 C.F.R. Part 58 (environmental 15
review procedures for entities assuming HUD environmental responsibilities) 16
may be charged for environmental review services through an assessment 17
payable to the Department of Housing and Community Development on a 18
basis established by the Commissioner of the Department of Housing and 19
Community Development and with the approval of the Secretary of 20
Administration. 21 BILL AS INTRODUCED H.412
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(b) The Department of Housing and Community Development may render 1
these services solely in its discretion. The Department shall not charge for 2
environmental review associated with HUD funding the Department issues 3
directly, such as Community Development Block Grant (CDBG) funding. 4
(c) The Department may utilize these funds for administrative costs 5
associated with providing environmental review services and other 6
administrative costs of the Vermont Community Development Program. 7
* * * Appropriations * * * 8
Sec. 51. DEPARTMENT OF HOUSING AND COMMUNITY 9
DEVELOPMENT; POSITIONS; APPROPRIATION 10
Three full-time, classified positions are created in the Department of 11
Housing and Community Development. The sum of $450,000.00 is 12
appropriated from the General Fund to the Department in fiscal year 2026 for 13
the purposes of funding these positions. 14
Sec. 52. APPROPRIATIONS 15
(a) The following shall be appropriated to the Department of Housing and 16
Community Development: 17
(1) The sum of $300,000.00 is appropriated from the General Fund in 18
fiscal year 2026 for the purposes of funding two existing limited-service 19
positions for fiscal years 2026 and 2027. One limited-service position shall 20
provide technical assistance to municipalities, nonprofit organizations, and 21 BILL AS INTRODUCED H.412
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private developers to aid in the development of infill and missing middle-1
income housing through the Homes for All initiative. One limited-service 2
position shall coordinate funding to distribution amongst State entities and 3
gather and analyze housing data to ensure efficient use of funds. 4
(2) The sum of $4,000,000.00 is appropriated from the General Fund in 5
fiscal year 2026 for the purposes of providing funding to the Vermont Rental 6
Housing Improvement Program Revolving Fund established in 10 V.S.A. 7
§ 699. 8
(3) The sum of $2,000,000.00 is appropriated from the General Fund in 9
fiscal year 2026 for the purposes of providing funding for the Manufactured 10
Home Improvement and Repair Program established in 10 V.S.A. § 700. 11
(b) The sum of $2,000,000.00 is appropriated from the General Fund to the 12
Department of Economic Development in fiscal year 2026 for brownfield 13
redevelopment. The Department of Economic Development shall use the 14
funds for the assessment, remediation, and redevelopment of brownfield sites 15
to be used in the same manner as the Brownfields Revitalization Fund 16
established in 10 V.S.A. § 6654, except, notwithstanding the grant limitations 17
in 10 V.S.A. § 6654, projects supported by these funds shall not be limited to a 18
maximum amount per site. The Department of Economic Development may 19
award up to the amount of $1,000,000.00 in fiscal year 2026 to regional 20
planning commissions for the purposes of brownfield assessment. In awarding 21 BILL AS INTRODUCED H.412
2025 Page 93 of 94
VT LEG #380410 v.1
funds under this subsection, the Secretary of the Agency of Commerce and 1
Community Development, in consultation with the Vermont Association of 2
Planning and Development Agencies, shall select one regional planning 3
commission to administer these funds. To ensure statewide availability, the 4
selected regional planning commission shall subgrant to regional planning 5
commissions with brownfield programs, with not more than 10 percent of the 6
funds being used for administrative purposes. 7
(c) The sum of $50,000.00 is appropriated from the General Fund to the 8
Agency of Natural Resources, Department of Environmental Conservation in 9
fiscal year 2026 to develop a water and sewer database and to administer the 10
amendments made to 3 V.S.A. chapter 51. 11
(d) The sum of $39,100,000.00 is appropriated from the General Fund to 12
the Department of Housing and Community Development in fiscal year 2026 13
for the following purposes: 14
(1) $15,000,000.00 granted to the Vermont Housing Finance Agency to 15
continue implementation of the Middle-Income Homeownership Development 16
Program; 17
(2) $15,000,000.00 granted to the Vermont Housing Finance Agency to 18
continue implementation of the Rental Housing Revolving Loan Fund; and 19
(3) $9,100,000.00 granted to the Vermont Bond Bank to implement the 20
Vermont Infrastructure Sustainability Fund. 21 BILL AS INTRODUCED H.412
2025 Page 94 of 94
VT LEG #380410 v.1
* * * Effective Date * * * 1
Sec. 53. EFFECTIVE DATE 2
This act shall take effect on July 1, 2025. 3