VT
Vermont Senate Bill S0102

Vermont 2025-2026 Regular Session

Vermont Senate Bill S0102 Compare Versions

Only one version of the bill is available at this time.
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11 BILL AS INTRODUCED S.102
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55 VT LEG #380409 v.2
66 S.102 1
77 Introduced by Senator Beck 2
88 Referred to Committee on 3
99 Date: 4
1010 Subject: Conservation and development; land use; Act 250; regional planning; 5
1111 housing; tax increment financing 6
1212 Statement of purpose of bill as introduced: This bill proposes to make multiple 7
1313 changes related to housing, including changes to land use planning, Act 250, 8
1414 municipal and regional planning, housing programs, and tax increment 9
1515 financing. 10
1616 An act relating to land use and housing development 11
1717 It is hereby enacted by the General Assembly of the State of Vermont: 12
1818 * * * Road Rule * * * 13
1919 Sec. 1. 10 V.S.A. § 6001 is amended to read: 14
2020 § 6001. DEFINITIONS 15
2121 As used in this chapter: 16
2222 * * * 17
2323 (3)(A) “Development” means each of the following: 18
2424 * * * 19 BILL AS INTRODUCED S.102
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2828 VT LEG #380409 v.2
2929 (xii) The construction of a road or roads and any associated 1
3030 driveways to provide access to or within a tract of land owned or controlled by 2
3131 a person. For the purposes of determining jurisdiction under this subdivision, 3
3232 any new development or subdivision on a parcel of land that will be provided 4
3333 access by the road and associated driveways is land involved in the 5
3434 construction of the road. 6
3535 (I) Jurisdiction under this subdivision shall not apply unless the 7
3636 length of any single road is greater than 800 feet, or the length of all roads and 8
3737 any associated driveways in combination is greater than 2,000 feet. 9
3838 (II) As used in this subdivision (xii), “roads” include any new 10
3939 road or improvement to a class 4 town highway by a person other than a 11
4040 municipality, including roads that will be transferred to or maintained by a 12
4141 municipality after their construction or improvement. Routine maintenance 13
4242 and minor repairs of a Class 4 highway shall not constitute an “improvement.” 14
4343 Routine maintenance shall include replacing a culvert or ditch, applying new 15
4444 stone, grading, or making repairs after adverse weather. Routine maintenance 16
4545 shall not include changing the size of the road, changing the location or layout 17
4646 of the road, or adding pavement. 18
4747 (III) For the purpose of determining the length of any road and 19
4848 associated driveways, the length of all other roads and driveways within the 20
4949 tract of land constructed after July 1, 2026 shall be included. 21 BILL AS INTRODUCED S.102
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5353 VT LEG #380409 v.2
5454 (IV) This subdivision (xii) shall not apply to: 1
5555 (aa) a State or municipal road, a utility corridor of an 2
5656 electric transmission or distribution company, or a road used primarily for 3
5757 farming or forestry purposes; 4
5858 (bb) development within a Tier 1A area established in 5
5959 accordance with section 6034 of this title or a Tier 1B area established in 6
6060 accordance with section 6033 of this title; and 7
6161 (cc) improvements underway when this section takes effect 8
6262 to a Class 4 highway that will be transferred to the municipality. 9
6363 (V) The conversion of a road used for farming or forestry 10
6464 purposes that also meets the requirements of this subdivision (xii) shall 11
6565 constitute development. 12
6666 (VI) The intent of this subdivision (xii) is to encourage the 13
6767 design of clustered subdivisions and development that does not fragment Tier 2 14
6868 areas or Tier 3 areas. 15
6969 (xiii) The construction of improvements for commercial, 16
7070 industrial, or residential purposes in a Tier 3 area as determined by rules 17
7171 adopted by the Board. 18
7272 * * * 19
7373 (D) The word “development” does not include: 20
7474 * * * 21 BILL AS INTRODUCED S.102
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7878 VT LEG #380409 v.2
7979 (viii)(I) The construction of a priority housing project in a 1
8080 municipality with a population of 10,000 or more. 2
8181 (II) If the construction of a priority housing project in this 3
8282 subdivision (3)(D)(viii) involves demolition of one or more buildings that are 4
8383 listed or eligible to be listed on the State or National Register of Historic 5
8484 Places, this exemption shall not apply unless the Division for Historic 6
8585 Preservation has made the determination described in subdivision (A)(iv)(I)(ff) 7
8686 of this subdivision (3) and any imposed conditions are enforceable in the 8
8787 manner set forth in that subdivision. 9
8888 (III) Notwithstanding any other provision of law to the 10
8989 contrary, and in addition to the provisions exemption subsection 6081(p) of 11
9090 this chapter, until January July 1, 2027 2035, the construction of a priority 12
9191 housing project or related subdivision located entirely within areas of a 13
9292 designated downtown development district, designated neighborhood 14
9393 development area, or a designated growth center or within one-half mile 15
9494 around such designated center with permanent zoning and subdivision bylaws 16
9595 served by public sewer or water services or soils that are adequate for 17
9696 wastewater disposal or extending to the terminus of the areas served by public 18
9797 sewer or water services if beyond the one-half mile area. Construction must be 19
9898 substantially completed by June 30, 2035. For purposes of this subdivision 20
9999 (III), in order for a parcel to qualify for the exemption, at least 51 percent of 21 BILL AS INTRODUCED S.102
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103103 VT LEG #380409 v.2
104104 the parcel shall be located within one-half mile of the designated center 1
105105 boundary. If the one-half mile around the designated center extends into an 2
106106 adjacent municipality, the legislative body of the adjacent municipal may 3
107107 inform the Board that it does not want the exemption to extend into that area. 4
108108 * * * 5
109109 (28) “Mixed use” means construction of both mixed income residential 6
110110 housing and construction of space for any combination of commercial and 7
111111 public purposes, including retail, office, services, artisan, and recreational, 8
112112 municipal, State, and community facilities, provided at least 40 percent of the 9
113113 gross floor area of the buildings involved is mixed income residential housing. 10
114114 “Mixed use” does not include industrial use. 11
115115 * * * 12
116116 (35) “Priority housing project” means a discrete project located on a 13
117117 single tract or multiple contiguous tracts of land that consists exclusively of 14
118118 mixed income housing or mixed use, or any combination thereof with mixed 15
119119 income housing, and is located entirely within a designated downtown 16
120120 development district, designated new town center, designated growth center, or 17
121121 designated neighborhood development area under 24 V.S.A. chapter 76A or 18
122122 within a downtown or village center, village area, or planned growth area as 19
123123 defined in 24 V.S.A. chapter 139. 20
124124 * * * 21 BILL AS INTRODUCED S.102
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128128 VT LEG #380409 v.2
129129 (46) “Tier 3” means an area consisting of critical natural resources 1
130130 defined by the rules of the Board. The Board’s rules shall at a minimum 2
131131 determine whether and how to protect river corridors, headwater streams, 3
132132 habitat connectors of statewide significance, riparian areas, class A waters, 4
133133 natural communities, and other critical natural resources. [Repealed.] 5
134134 * * * 6
135135 (51) “Transit route” means a set route or network of routes on which a 7
136136 public transit service as defined in 24 V.S.A. § 5088 operates a regular 8
137137 schedule and as may be further defined by Board rule. 9
138138 (52) “Infill” or “infill development” means the use of vacant land or 10
139139 property within an existing settlement for further construction or development. 11
140140 * * * Repeal of Road Construction Rulemaking * * * 12
141141 Sec. 2. 2024 Acts and Resolves No. 181, Sec. 20 is amended to read: 13
142142 Sec. 20. RULEMAKING; ROAD CONSTRUCTION 14
143143 The Natural Resources Board may adopt rules after consulting with 15
144144 stakeholders, providing additional specificity to the necessary elements of 10 16
145145 V.S.A. § 6001(3)(A)(xii). It is the intent of the General Assembly that any 17
146146 rules encourage the design of clustered subdivisions and development that does 18
147147 not fragment Tier 2 areas or Tier 3 areas. [Repealed.] 19 BILL AS INTRODUCED S.102
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151151 VT LEG #380409 v.2
152152 * * * Jurisdictional Opinions * * * 1
153153 Sec. 3. 10 V.S.A. § 6007 is amended to read: 2
154154 § 6007. ACT 250 DISCLOSURE STATEMENT; JURISDICTIONAL 3
155155 DETERMINATION 4
156156 * * * 5
157157 (c) With respect to the partition or division of land, or with respect to an 6
158158 activity that might or might not constitute development, any person may 7
159159 submit to the district coordinator an “Act 250 Disclosure Statement” and other 8
160160 information required by the rules of the Board and may request a jurisdictional 9
161161 opinion from the district coordinator on behalf of the Board concerning the 10
162162 applicability of this chapter. A district coordinator’s decision made on behalf 11
163163 of the Board that a land use application is substantially incomplete shall be 12
164164 treated as a jurisdictional opinion. If a requestor wishes a final determination 13
165165 to be rendered on the question, the district coordinator, on behalf of the Board, 14
166166 at the expense of the requestor and in accordance with rules of the Board, shall 15
167167 publish notice of the issuance of the opinion in a local newspaper generally 16
168168 circulating in the area where the land that is the subject of the opinion is 17
169169 located and shall serve the opinion on all persons listed in subdivisions 18
170170 6085(c)(1)(A) through (D) of this title. In addition, the requestor who is 19
171171 seeking a final determination shall consult with the district coordinator, on 20
172172 behalf of the Board, and obtain approval of a subdivision 6085(c)(1)(E) list of 21 BILL AS INTRODUCED S.102
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175175
176176 VT LEG #380409 v.2
177177 persons who shall be notified by the district coordinator because they are 1
178178 adjoining property owners or other persons who would be likely to be able to 2
179179 demonstrate a particularized interest protected by this chapter that may be 3
180180 affected by an act or decision by a District Commission. 4
181181 (d) Completeness. An application that is incomplete in substantial respects 5
182182 shall not be accepted for filing by the district coordinator and therefore shall 6
183183 not initiate the time and notice requirements of the chapter and the associated 7
184184 rules. A district coordinator’s decision that an application is substantially 8
185185 incomplete shall be treated as a jurisdictional opinion pursuant to this section. 9
186186 * * * Land Use Review Board * * * 10
187187 Sec. 4. 10 V.S.A. § 6021 is amended to read: 11
188188 § 6021. BOARD; VACANCY; REMOVAL 12
189189 (a) Board established. The Land Use Review Board is created. 13
190190 (1) The Board shall consist of five members appointed by the Governor 14
191191 after review and approval by the Land Use Review Board Nominating 15
192192 Committee in accordance with subdivision (2) of this subsection and 16
193193 confirmed with the advice and consent of the Senate, so that one appointment 17
194194 expires in each year. The Chair and the other four members shall be full-time 18
195195 positions. In making these appointments, the Governor and the Senate shall 19
196196 give consideration to candidates who have experience, expertise, or skills 20
197197 relating to one or more of the following areas: environmental science; land use 21 BILL AS INTRODUCED S.102
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201201 VT LEG #380409 v.2
202202 law, policy, planning, and development; and community planning. All 1
203203 candidates shall have a commitment to environmental justice. 2
204204 (A) The Governor shall appoint a chair of the Board, a position that 3
205205 shall be a full-time position. The Governor shall ensure Board membership 4
206206 reflects, to the extent possible, the racial, ethnic, gender, and geographic 5
207207 diversity of the State. The Board shall not contain two members who reside in 6
208208 the same county. 7
209209 (B) Following initial appointments, the members shall be appointed 8
210210 for terms of five years. All terms after initial appointments shall begin on July 9
211211 February 1 and expire on June 30 January 31. A member may continue 10
212212 serving until a successor is appointed. The initial appointments shall be for 11
213213 staggered terms of one year, two years, three years, four years, and five years. 12
214214 * * * 13
215215 (d) Disqualified members. The Chair of the Board, upon request of the 14
216216 Chair of a District Commission, may appoint and assign former Commission 15
217217 members to sit on specific Commission cases matters when some or all of the 16
218218 regular members and alternates of the District Commission are disqualified or 17
219219 otherwise unable to serve. If necessary to achieve a quorum, the Chair of the 18
220220 Board may appoint a member of a District Commission who has not worked 19
221221 on the case matter to sit on a specific case matter before the Board. 20
222222 * * * 21 BILL AS INTRODUCED S.102
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227227 Sec. 5. 2024 Acts and Resolves No. 181, Sec. 11 is amended to read: 1
228228 Sec. 11. LAND USE REVIEW BOARD APPOINTMENTS; REVISION 2
229229 AUTHORITY 3
230230 * * * 4
231231 (d) The Land Use Review Board is the successor entity to the Natural 5
232232 Resources Board, and all rights, obligations, and authority of the Natural 6
233233 Resources Board are hereby transferred to the Land Use Review Board, 7
234234 including with respect to contracts, settlements, appeals, enforcement, policies, 8
235235 rulemaking, and guidance. This succession is retroactive to January 1, 2025. 9
236236 The rules of the Natural Resources Board in effect on December 31, 2024 shall 10
237237 become rules of the Land Use Review Board. In those rules, the Land Use 11
238238 Review Board is authorized to change all references to the Natural Resources 12
239239 Board so that they refer to the Land Use Review Board. Unless accompanied 13
240240 by one or more other revisions to the rules, such a change need not be made 14
241241 through the rulemaking process under the Administrative Procedure Act. 15
242242 * * * Tier 1B * * * 16
243243 Sec. 6. 10 V.S.A. § 6033 is amended to read: 17
244244 § 6033. REGIONAL PLAN FUTURE LAND USE MAP REVIEW 18
245245 * * * 19
246246 (c) To obtain a Tier 1B area status under this section the regional planning 20
247247 commission shall demonstrate to the Board that the municipalities with Tier 1B 21 BILL AS INTRODUCED S.102
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251251 VT LEG #380409 v.2
252252 areas meet the following requirements as included in subdivision 24 V.S.A. 1
253253 § 4348a(a)(12)(C): 2
254254 (1) The municipality has not requested to opt out to have the area 3
255255 mapped for Tier 1B. A municipality may request to opt out of Tier 1B area 4
256256 status by submitting a resolution passed by the municipality to the relevant 5
257257 regional planning commission and the Board. 6
258258 * * * 7
259259 (6) The municipality has municipal staff, municipal officials, or regional 8
260260 planning commission staff or other contracted capacity adequate to support 9
261261 development review and zoning administration in the Tier 1B area. 10
262262 * * * Tier 1A * * * 11
263263 Sec. 7. 10 V.S.A. § 6034 is amended to read: 12
264264 § 6034. TIER 1A AREA STATUS 13
265265 (a) Application and approval. 14
266266 (1) Beginning on January September 1, 2026, a municipality, by 15
267267 resolution of its legislative body, may shall be able to apply to the Land Use 16
268268 Review Board for Tier 1A status for the area of the municipality that is suitable 17
269269 for dense development and meets the requirements of subsection (b) of this 18
270270 section. A municipality may apply for multiple noncontiguous areas to be 19
271271 receive Tier 1A area status. Applications may be submitted at different times. 20
272272 * * * 21 BILL AS INTRODUCED S.102
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276276 VT LEG #380409 v.2
277277 (b) Tier 1A area status requirements. 1
278278 (1) To obtain a Tier 1A area status under this section, a municipality 2
279279 shall demonstrate to the Board that it has each of the following: 3
280280 * * * 4
281281 (F) The Tier 1A area is compatible with the character of adjacent 5
282282 National Register Historic Districts, National or State Register Historic Sites, 6
283283 and other significant cultural and natural resources identified by local or State 7
284284 government. 8
285285 (G) The municipality has identified and planned for the maintenance 9
286286 of significant natural communities, rare, threatened, and endangered species 10
287287 located in the Tier 1A area or excluded those areas from the Tier 1A area. 11
288288 (H) Public water and wastewater systems or planned improvements 12
289289 have the capacity to support additional development within the Tier 1A area. 13
290290 (I)(G) Municipal or regional planning commission staff or other 14
291291 contracted capacity adequate to support coordinated comprehensive and capital 15
292292 planning, development review, and zoning administration in the Tier 1A area. 16
293293 * * * 17
294294 * * * Tier 1A Area Guidelines * * * 18
295295 Sec. 8. 2024 Acts and Resolves No. 181, Sec. 29 is amended to read: 19
296296 Sec. 29. TIER 1A AREA GUIDELINES 20 BILL AS INTRODUCED S.102
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301301 On or before January March 1, 2026, the Land Use Review Board shall 1
302302 publish guidelines to direct municipalities seeking to obtain the Tier 1A area 2
303303 status. The guidelines shall include how a municipality shall demonstrate that 3
304304 improvements are planned for a public water or wastewater system and at what 4
305305 stage in the process the improvements need to be to provide a reasonable 5
306306 expectation of completion. 6
307307 Sec. 9. 2024 Acts and Resolves No. 181, Sec. 22 is amended to read: 7
308308 Sec. 22. TIER 3 RULEMAKING CRITICAL ENVIRONMENTAL 8
309309 RESOURCES WORKING GROUP 9
310310 (a) The Land Use Review Board, in consultation with the Secretary of 10
311311 Natural Resources, shall adopt rules undertake a study to implement 11
312312 investigate the necessity of and requirements for the administration of 10 12
313313 V.S.A. § 6001(3)(A)(xiii) and 10 V.S.A. § 6001(46) and (19) an additional 13
314314 Tier or expanded criteria for Act 250 jurisdiction covering critical 14
315315 environmental resources. It is the intent of the General Assembly that these 15
316316 rules the study identify critical natural resources for protection. The Board 16
317317 shall review the a potential definition of Tier 3 area these areas; determine the 17
318318 critical natural resources that shall may be included in Tier 3, giving due 18
319319 consideration to river corridors, headwater streams, habitat connectors of 19
320320 statewide significance, riparian areas, class A waters, and natural communities; 20
321321 any additional critical natural resources that should may be added to the 21 BILL AS INTRODUCED S.102
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325325 VT LEG #380409 v.2
326326 definition; measures to ensure that no municipality or region is 1
327327 disproportionately impacted by Tier 3 designation expanding protection of 2
328328 these areas that would limit reasonable opportunities for Tier 1 or Tier 2 3
329329 designations; and how to define the boundaries. Rules adopted by the Board 4
330330 The study shall include: 5
331331 (1) any necessary clarifications to how the Tier 3 definition is or 6
332332 additional criteria would be used in 10 V.S.A. chapter 151, including whether 7
333333 and how subdivisions would be covered under the jurisdiction of Tier 3; 8
334334 (2) any necessary changes to how 10 V.S.A. § 6001(3)(A)(xiii) 9
335335 construction of improvements for commercial, industrial, or residential 10
336336 purposes in the areas affected should be administered and when jurisdiction 11
337337 should be triggered to protect the functions and values of resources of critical 12
338338 natural resources; 13
339339 (3) the process for how Tier 3 these areas will be mapped or identified 14
340340 by the Agency of Natural Resources and the Board; and 15
341341 (4) other policies or programs that shall may be developed to review 16
342342 development impacts to Tier 3 these areas if they are not included in 10 V.S.A. 17
343343 § 6001(46); and 18
344344 (5) if a critical natural resource area is not recommended for protection 19
345345 under Tier 3, it shall be identified in the rule, and a rationale shall be provided 20
346346 as to why the critical resource was not selected for Tier 3 protection. 21 BILL AS INTRODUCED S.102
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350350 VT LEG #380409 v.2
351351 (b) On or before January 1, 2025, the Board shall convene a working group 1
352352 of stakeholders to provide input to the rule prior to prefiling with the 2
353353 Interagency Committee on Administrative Rules study prior to submission to 3
354354 the General Assembly. The working group As part of the study, the Board 4
355355 shall include hear from representation from regional planning commissions; 5
356356 environmental groups; science and ecological research organizations; 6
357357 woodland or forestry organizations; the Vermont Housing and Conservation 7
358358 Board; the Vermont Chamber of Commerce; the League of Cities of Towns; 8
359359 the Land Access and Opportunity Board; the State Natural Resources 9
360360 Conservation Council; and other stakeholders, such as the Vermont Ski Areas 10
361361 Association, the Department of Taxes, Division of Property Valuation and 11
362362 Review, the Department of Forests, Parks and Recreation, the Department of 12
363363 Environmental Conservation, the Department of Fish and Wildlife, the 13
364364 Vermont Woodlands Association, and the Professional Logging Contractors of 14
365365 the Northeast. 15
366366 (c) The Board shall file a final proposed rule with the Secretary of State 16
367367 and Legislative Committee on Administrative Rules the study with the House 17
368368 Committee on Environment and the Senate Committee on Natural Resources 18
369369 and Energy on or before February 1, 2026. After the Land Use Review Board 19
370370 files the rule with Legislative Committee on Administrative Rules, it shall 20
371371 submit a report describing the rules and the issues reviewed under this section 21 BILL AS INTRODUCED S.102
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375375 VT LEG #380409 v.2
376376 to the House Committee on Environment and Energy and the Senate 1
377377 Committee on Natural Resources and Energy. 2
378378 (d) During the rule development study, the stakeholder group established 3
379379 under subsection (b) of this section shall solicit participation from 4
380380 representatives of municipalities and landowners that host Tier 3 potential 5
381381 critical resource areas on their properties to determine the responsibilities and 6
382382 education needed to understand, manage, and interact with the resources. 7
383383 Sec. 10. REPEAL. 8
384384 2024 Acts and Resolves No. 181, Sec. 14. (criterion 8(C) rulemaking) is 9
385385 repealed. 10
386386 * * * Act 250 Exemptions * * * 11
387387 Sec. 11. 10 V.S.A. § 6081 is amended to read: 12
388388 § 6081. PERMITS REQUIRED; EXEMPTIONS 13
389389 * * * 14
390390 (p) No permit or permit amendment is required for a priority housing 15
391391 project or related subdivision in a designated center if the project remains 16
392392 below any applicable jurisdictional threshold specified in subdivision 17
393393 6001(3)(A)(iv)(I) of this title. 18
394394 * * * 19
395395 (y) Until December 31, 2030 July 1, 2035, no permit or permit amendment 20
396396 is required for a retail electric distribution utility’s rebuilding of existing 21 BILL AS INTRODUCED S.102
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400400 VT LEG #380409 v.2
401401 electrical distribution lines and related facilities to improve reliability and 1
402402 service to existing customers, through overhead or underground lines in an 2
403403 existing corridor, road, or State or town road right-of-way. Nothing in this 3
404404 section shall be interpreted to exempt projects under this subsection from other 4
405405 required permits or the conditions on lands subject to existing permits required 5
406406 by this section. 6
407407 (z)(1) Notwithstanding any other provision of this chapter to the contrary, 7
408408 no permit or permit amendment is required for any subdivision, development, 8
409409 or change to an existing project, as defined by Board rules, that is located 9
410410 entirely within a Tier 1A area under section 6034 of this chapter. Units 10
411411 constructed pursuant to this subsection shall not count towards the total units 11
412412 constructed in other Tier areas. 12
413413 (2) Notwithstanding any other provision of this chapter to the contrary, 13
414414 no permit or permit amendment is required within a Tier 1B area approved by 14
415415 the Board under section 6033 of this chapter for the subdivision for or 15
416416 construction of 50 units or fewer of housing on a tract or tracts of land 16
417417 involving 10 acres or less or for mixed-use development with 50 units or fewer 17
418418 of housing on a tract or tracts of land involving 10 acres or less. Units 18
419419 constructed pursuant to this subsection shall not count towards the total units 19
420420 constructed in other Tier areas. 20 BILL AS INTRODUCED S.102
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425425 (A) No permit or permit amendment is required for any subdivision, 1
426426 development, or change to an existing project, as defined by Board rules, for 2
427427 priority housing projects in Tier 1B eligible areas up to 50 units. 3
428428 (B) No permit or permit amendment is required for any subdivision, 4
429429 development, or change to an existing project, as defined by Board rules, for 5
430430 priority housing projects in Tier 1B areas up to 75 units. 6
431431 (3) Upon receiving notice and a copy of the permit issued by an 7
432432 appropriate municipal panel pursuant to 24 V.S.A. § 4460(g), a previously 8
433433 issued permit for a development or subdivision located in a Tier 1A area shall 9
434434 remain attached to the property. However, neither the Board nor the Agency 10
435435 of Natural Resources shall enforce the permit or assert amendment jurisdiction 11
436436 on the tract or tracts of land unless the designation is revoked terminated or the 12
437437 municipality has not taken any reasonable action to enforce the conditions of 13
438438 the permit. The permit may also be discharged upon request of the permittee 14
439439 pursuant to section 6091of this chapter. 15
440440 (aa) No permit or permit amendment is required for the construction of 16
441441 improvements for a hotel or motel converted to permanently affordable 17
442442 housing developments as defined in 24 V.S.A. § 4303(2). 18
443443 (bb) Until July 1, 2028 July 1, 2035, no permit or permit amendment is 19
444444 required for the construction of improvements for one accessory dwelling unit 20
445445 constructed within or appurtenant to a single-family dwelling. Units 21 BILL AS INTRODUCED S.102
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449449 VT LEG #380409 v.2
450450 constructed pursuant to this subsection shall not count towards the total units 1
451451 constructed in other projects. 2
452452 (cc) Until July 1, 2028 July 1, 2035, no permit amendment is required for 3
453453 the construction of improvements for converting a structure used for a 4
454454 commercial purpose nonresidential structure to 29 or fewer housing units. 5
455455 (dd) Interim housing exemptions. 6
456456 (1) Notwithstanding any other provision of law to the contrary, until 7
457457 January 1, 2027 July 1, 2035, no permit or permit amendment is required for 8
458458 the subdivision for or the construction of housing projects and mixed-use 9
459459 development such as cooperatives, condominiums, dwellings, or mobile 10
460460 homes, with 75 units or fewer, constructed or maintained on a tract or tracts of 11
461461 land, located entirely within the areas of a designated new town center, a 12
462462 designated growth center, or a designated neighborhood development area 13
463463 served by public sewer or water services or soils that are adequate for 14
464464 wastewater disposal. Housing units constructed pursuant to this subdivision 15
465465 shall not count towards the total units constructed in other areas. This 16
466466 exemption shall not apply to areas within mapped river corridors and 17
467467 floodplains identified flood hazard and fluvial erosion areas except those areas 18
468468 containing preexisting development in areas suitable for infill development as 19
469469 defined in 29-201 of the Vermont Flood Hazard Area and River Corridor Rule 20
470470 or unless the municipality has adopted flood hazard and river corridor bylaws 21 BILL AS INTRODUCED S.102
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474474 VT LEG #380409 v.2
475475 applicable to the entire municipality that are consistent with the standards 1
476476 established pursuant to subsections 755(b) and 428(b) of this title. 2
477477 (2)(A) Notwithstanding any other provision of law to the contrary, until 3
478478 July 1, 2027 2035, no permit or permit amendment is required for the 4
479479 subdivision for or the construction of housing projects and mixed-use 5
480480 development such as cooperatives, condominiums, dwellings, or mobile 6
481481 homes, with 50 or fewer units, constructed or maintained on a tract or tracts of 7
482482 land of 10 acres or less, located entirely within: 8
483483 (i) areas of a designated village center and within one-quarter mile 9
484484 of its boundary with permanent zoning and subdivision bylaws and served by 10
485485 public sewer or water services or soils that are adequate for wastewater 11
486486 disposal or extending to the terminus of the area served by public sewer or 12
487487 water services if beyond the one-quarter mile area; or 13
488488 (ii) areas of a municipality that are within a census-designated 14
489489 urbanized area adjusted federal aid urban areas as approved by the federal 15
490490 highway administration with over 50,000 residents and or within one-quarter 16
491491 mile of a transit route in existence and mapped as of July 1, 2024 and which 17
492492 may be further defined and updated by Board rule or guidance. 18
493493 (B) Housing units constructed pursuant to this subdivision (2) shall 19
494494 not count towards the total units constructed in other areas. This exemption 20
495495 shall not apply to areas within mapped river corridors and floodplains 21 BILL AS INTRODUCED S.102
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498498
499499 VT LEG #380409 v.2
500500 identified flood hazard and fluvial erosion areas, except those areas containing 1
501501 preexisting development in areas suitable for infill development as defined in 2
502502 29-201 of the Vermont Flood Hazard Area and River Corridor Rule or unless 3
503503 the municipality has adopted flood hazard and river corridor bylaws applicable 4
504504 to the entire municipality that are consistent with the standards established 5
505505 pursuant to subsections 755(b) and 428(b) of this title. For purposes of this 6
506506 subdivision, in order for a parcel to shall qualify for the exemption, at least 51 7
507507 percent if any part of the parcel shall be is located within one-quarter mile of 8
508508 the designated village center boundary or the center line of the transit route. If 9
509509 the one-quarter mile extends into an adjacent municipality, the legislative body 10
510510 of the adjacent municipal may inform the Board that it does not want the 11
511511 exemption to extend into that area. 12
512512 (3) Notwithstanding any other provision of law to the contrary, until 13
513513 January 1, 2027 July 1, 2035, no permit or permit amendment is required for 14
514514 the construction of or subdivision for, or the housing projects and mixed use 15
515515 development such as cooperatives, condominiums, dwellings, or mobile 16
516516 homes, constructed or maintained on a tract or tracts of land, located entirely 17
517517 within a designated downtown development district with permanent zoning 18
518518 and subdivision bylaws served by public sewer or water services or soils that 19
519519 are adequate for wastewater disposal or extending to the terminus of the areas 20
520520 served by public sewer or water services if beyond area of the development 21 BILL AS INTRODUCED S.102
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522522
523523
524524 VT LEG #380409 v.2
525525 district. Housing units constructed pursuant to this subdivision shall not count 1
526526 towards the total units constructed in other areas. This exemption shall not 2
527527 apply to areas within mapped river corridors and floodplains except those areas 3
528528 containing preexisting development in areas suitable for infill development as 4
529529 defined in 29-201 of the Vermont Flood Hazard Area and River Corridor Rule 5
530530 or unless the municipality has adopted flood hazard and river corridor bylaws 6
531531 applicable to the entire municipality that are consistent with the standards 7
532532 established pursuant to subsections 755(b) and 428(b) of this title. 8
533533 (4) This subsection is effective retroactively to July 1, 2023. Any 9
534534 project permitted after July 1, 2023 that meets the requirements of this 10
535535 subsection may seek a discharge of the permit from the District Commission. 11
536536 * * * Discharge of Act 250 Permits and Jurisdiction * * * 12
537537 Sec. 12. 10 V.S.A. § 6091 is amended to read: 13
538538 § 6091. RENEWALS; AND DISCHARGE; NONUSE 14
539539 * * * 15
540540 (e) Discharge of permits. Existing permits and jurisdiction encumbering a 16
541541 parcel may be discharged by the District Commission or LURB upon request 17
542542 of the parcel owner or permittee if the parcel is changed to a use that would not 18
543543 otherwise trigger jurisdiction or the parcel falls within an area otherwise 19
544544 exempt from jurisdiction as approved by LURB. The District Commission or 20
545545 LURB may deny a request for permit discharge if the permit contains ongoing 21 BILL AS INTRODUCED S.102
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547547
548548
549549 VT LEG #380409 v.2
550550 conditions that relate to the use of the property. The LURB shall be 1
551551 responsible for continued review and enforcement of these conditions. A 2
552552 denial of a request for discharge may be appealed to Environmental Division 3
553553 of the Superior Court. 4
554554 Sec. 13. 2023 Acts and Resolves No. 47, Sec. 16a is amended to read: 5
555555 Sec. 16a. ACT 250 EXEMPTION REQUIREMENTS 6
556556 In order to qualify for the exemptions established in 10 V.S.A. § 6001 7
557557 (3)(A)(xi) and (3)(D)(viii)(III), a A person shall may request a jurisdictional 8
558558 opinion under 10 V.S.A. § 6007 on or before June 30, 2026 to confirm a 9
559559 project is exempted under-exemptions established in 10 V.S.A. § 6001 10
560560 (3)(A)(xi) and (3)(D)(viii)(III). The jurisdictional opinion shall require the 11
561561 project to substantially complete construction on or before June 30, 2029 July 12
562562 1, 2035 in order to remain exempt. A jurisdictional opinion is not required to 13
563563 utilize the exemption. 14
564564 * * * LURB Public Meeting Exemption * * * 15
565565 Sec. 14. 1 V.S.A. § 312 is amended to read: 16
566566 § 312. RIGHT TO ATTEND MEETINGS OF PUBLIC AGENCIES 17
567567 * * * 18
568568 (e) Nothing in this section or in section 313 of this title shall be construed 19
569569 as extending to the Judicial Branch of the Government of Vermont or of any 20
570570 part of the same or to the Public Utility Commission or the Land Use Review 21 BILL AS INTRODUCED S.102
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572572
573573
574574 VT LEG #380409 v.2
575575 Board established in 10 V.S.A. § 6021; nor shall it extend to the deliberations 1
576576 of any public body in connection with a quasi-judicial proceeding; nor shall 2
577577 anything in this section be construed to require the making public of any 3
578578 proceedings, records, or acts which are specifically made confidential by the 4
579579 laws of the United States of America or of this State. 5
580580 * * * 6
581581 * * * Community Investment Board Transition * * * 7
582582 Sec. 15. 24 V.S.A. § 5802(f) is amended to read: 8
583583 (f) In addition to any other duties confirmed by law, the State Board shall 9
584584 have the following duties: 10
585585 * * * 11
586586 (6) To assume authority over any remaining powers and responsibilities 12
587587 of the former Downtown Board established under 24 V.S.A. chapter 76A. The 13
588588 Community Investment Board is the successor entity of the Downtown Board 14
589589 with all due rights, duties, and authority transferred thereto. 15
590590 * * * Designation Transition * * * 16
591591 Sec. 16. 24 V.S.A. § 4348 is amended to read: 17
592592 § 4348. ADOPTION AND AMENDMENT OF REGIONAL PLAN 18
593593 * * * 19
594594 (g) A regional plan or amendment shall be adopted by not less than a 60 20
595595 percent vote of the commissioners representing municipalities, in accordance 21 BILL AS INTRODUCED S.102
596596 2025 Page 25 of 94
597597
598598
599599 VT LEG #380409 v.2
600600 with the bylaws of the regional planning commission. A regional plan shall be 1
601601 effective upon adoption for regional purposes and will remain effective for 2
602602 purposes other than future land use mapping if not approved by the Land Use 3
603603 Review Board. 4
604604 * * * 5
605605 (p) Regional planning commissions shall adopt a regional plan in 6
606606 conformance with this title after July 1, 2025 and on or before December 31, 7
607607 2026. 8
608608 Sec. 17. 24 V.S.A. § 5803 is amended to read: 9
609609 § 5803. DESIGNATION OF DOWNTOWN AND VILLAGE CENTERS 10
610610 (a) Designation established. A regional planning commission may apply to 11
611611 the LURB for approval and designation of all centers by submitting the 12
612612 regional plan future land use map adopted by the regional planning 13
613613 commission. The regional plan future land use map shall identify downtown 14
614614 centers and village centers as the downtown and village areas eligible for 15
615615 designation as centers. The Department and State Board shall provide 16
616616 comments to the LURB on areas eligible for center designation as provided 17
617617 under this chapter. 18
618618 * * * 19
619619 (e) Transition. All designated downtowns, village centers, or new town 20
620620 centers existing as of December 31, 2025 will retain current benefits until 21 BILL AS INTRODUCED S.102
621621 2025 Page 26 of 94
622622
623623
624624 VT LEG #380409 v.2
625625 December 31, 2026 2027 or until approval of the regional future land use maps 1
626626 by the LURB, whichever comes first. All existing designations in effect 2
627627 December 31, 2025 will expire December 31, 2026 2027 if the regional plan 3
628628 does not receive LURB approval under this chapter. All benefits for unexpired 4
629629 designated downtowns, village centers, and new town centers that are removed 5
630630 under this chapter shall remain in effect until July 1, 2034 2035. Prior to June 6
631631 30, 2026 2027, no check-in or renewals shall be required for the preexisting 7
632632 designations. New applications for downtowns, villages, and new town centers 8
633633 may be approved by the State Board prior to the first public hearing on a 9
634634 regional future land use map or until December 31, 2025, whichever comes 10
635635 first. 11
636636 (f) Benefits Steps. A center may receive the benefits associated with the 12
637637 steps in this section by meeting the established requirements. The Department 13
638638 shall review applications from municipalities to advance from Step One to 14
639639 Two and from Step Two to Three and issue written decisions. The Department 15
640640 shall issue a written administrative decision within 30 days following an 16
641641 application. If a municipal application is rejected by the Department, the 17
642642 municipality may appeal the administrative decision to the State Board. To 18
643643 maintain a downtown approved under chapter 76A after December 31, 2026 19
644644 2035, the municipality shall apply for renewal following a regional planning 20
645645 approval by the LURB and meet the program requirements. Step Three 21 BILL AS INTRODUCED S.102
646646 2025 Page 27 of 94
647647
648648
649649 VT LEG #380409 v.2
650650 designations that are not approved for renewal revert to Step Two. The 1
651651 municipality may appeal the administrative decision of the Department to the 2
652652 State Board. Appeals of administrative decisions shall be heard by the State 3
653653 Board at the next meeting following a timely filing stating the reasons for the 4
654654 appeal. The State Board’s decision is final. The Department shall issue 5
655655 guidance to administer these steps. 6
656656 * * * 7
657657 Sec. 18. 24 V.S.A. § 5804 is amended to read: 8
658658 § 5804. DESIGNATED NEIGHBORHOOD 9
659659 * * * 10
660660 (b) Transition. All designated growth center or neighborhood development 11
661661 areas existing as of December 31, 2025 will retain current benefits until 12
662662 December 31, 2026 2027 or upon approval of the regional plan future land use 13
663663 maps, whichever comes first. All existing neighborhood development area and 14
664664 growth center designations in effect on December 31, 2025 will expire on 15
665665 December 31, 2026 2027 if the regional plan future land use map is not 16
666666 approved. All benefits that are removed for unexpired neighborhood 17
667667 development areas and growth centers under this chapter shall remain active 18
668668 with prior designations existing as of December 31, 2025 until December 31, 19
669669 2034 2035. Prior to December 31, 2026 2027, no check-ins or renewal shall be 20
670670 required for the existing designations. New applications for neighborhood 21 BILL AS INTRODUCED S.102
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673673
674674 VT LEG #380409 v.2
675675 development area designations may be approved by the State Board prior to 1
676676 the first hearing for a regional plan adoption or until December 31, 2025, 2
677677 whichever comes first. 3
678678 * * * 4
679679 * * * Appeals * * * 5
680680 * * * Priority for Act 250 and LURB Appeals * * * 6
681681 Sec. 19. 10 V.S.A. § 6089 is amended to read: 7
682682 § 6089. APPEALS 8
683683 (a) Appeals of any act or decision of a District Commission under this 9
684684 chapter or a district coordinator under subsection 6007(c) of this title shall be 10
685685 made to the Environmental Division in accordance with chapter 220 of this 11
686686 title. For the purpose of this section, a decision of the Chair of a District 12
687687 Commission under section 6001e of this title on whether action has been taken 13
688688 to circumvent the requirements of this chapter shall be considered an act or 14
689689 decision of the District Commission. 15
690690 (b) Except cases the Court considers of greater importance, proceedings 16
691691 involving development of residential housing before the Environmental 17
692692 Division of the Superior Court and appeals there from take precedence on the 18
693693 docket over all cases and shall be assigned for hearing and trial or for argument 19
694694 at the earliest practicable date and expedited in every way. 20 BILL AS INTRODUCED S.102
695695 2025 Page 29 of 94
696696
697697
698698 VT LEG #380409 v.2
699699 * * * Municipal Zoning Appeals * * * 1
700700 Sec. 20. 24 V.S.A. § 4465 is amended to read: 2
701701 § 4465. APPEALS OF DECISIONS OF THE ADMINISTRATIVE OFFICER 3
702702 * * * 4
703703 (b) As used in this chapter, an “interested person” means any one of the 5
704704 following: 6
705705 * * * 7
706706 (4) Any 20 persons A minimum of 20 percent of the most recent U.S. 8
707707 Census Bureau population estimate of the municipality who may be any 9
708708 combination of voters, residents, or real property owners within a municipality 10
709709 listed in subdivision (2) of this subsection who, by signed petition to the 11
710710 appropriate municipal panel of a municipality, the plan or a bylaw of which is 12
711711 at issue in any appeal brought under this title, allege that any relief requested 13
712712 by a person under this title, if granted, will not be in accord with the policies, 14
713713 purposes, or terms of the plan or bylaw of that municipality. This petition to 15
714714 the appropriate municipal panel must designate one person to serve as the 16
715715 representative of the petitioners regarding all matters related to the appeal. For 17
716716 purposes of this subdivision, an appeal shall not include the character of the 18
717717 area affected if the project has a residential component that includes affordable 19
718718 housing. 20
719719 * * * 21 BILL AS INTRODUCED S.102
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722722
723723 VT LEG #380409 v.2
724724 (d) A party appealing a land use decision must demonstrate a clear and 1
725725 substantial departure from the comprehensive plan or land use regulation that 2
726726 directly affects the party’s property. 3
727727 * * * Priority for Hearing of Housing Appeals * * * 4
728728 Sec. 21. 24 V.S.A. § 4471 is amended to read: 5
729729 § 4471. APPEAL TO ENVIRONMENTAL DIVISION 6
730730 * * * 7
731731 (f) Except cases the Court considers of greater importance, proceedings 8
732732 involving development of residential housing before the Environmental 9
733733 Division of the Superior Court and appeals there from take precedence on the 10
734734 docket over all cases and shall be assigned for hearing and trial or for argument 11
735735 at the earliest practicable date and expedited in every way. 12
736736 (g) A party appealing a land use decision must demonstrate a clear and 13
737737 substantial departure from the comprehensive plan or land use regulation that 14
738738 directly affects the party’s property. 15
739739 Sec. 22. 10 V.S.A. § 8504 is amended to read: 16
740740 § 8504. APPEALS TO THE ENVIRONMENTAL DIVISION 17
741741 * * * 18
742742 (k) Limitations on appeals. Notwithstanding any other provision of this 19
743743 section: 20
744744 * * * 21 BILL AS INTRODUCED S.102
745745 2025 Page 31 of 94
746746
747747
748748 VT LEG #380409 v.2
749749 (4) it shall be the goal of the Environmental Division to hear cases 1
750750 involving development of residential housing within 60 days and to issue a 2
751751 decision on a case involving development of residential housing or regarding 3
752752 an appeal of an appropriate municipal panel decision under 24 V.S.A. chapter 4
753753 117 within 90 days following the close of the hearing. 5
754754 * * * 6
755755 * * * Attorney’s Fees and Costs * * * 7
756756 Sec. 23. 10 V.S.A. § 8507 is added to read: 8
757757 § 8507. LEGAL FEES AND ASSOCIATED COSTS OF APPEAL 9
758758 (a) If an aggrieved person elects to appeal the judgment of the appropriate 10
759759 municipal panel on an approved application for a project involving residential 11
760760 housing to the court under this chapter, and the court rules in favor of the 12
761761 applicant, the court shall require the aggrieved person to compensate, in a 13
762762 sufficient sum as the court directs, the permit applicant for an amount not to 14
763763 exceed $50,000.00 consisting of: 15
764764 (1) the permit applicant’s reasonable attorney’s fees; and 16
765765 (2) tangible costs incurred by the permit applicant in defending the 17
766766 permit, such as costs of studies and other analysis. 18
767767 (b) The court may grant dispensation from the compensation required in 19
768768 subsection (a) of this section for aggrieved persons that can demonstrate undue 20
769769 hardship due to income status or other factors in the court’s discretion. 21 BILL AS INTRODUCED S.102
770770 2025 Page 32 of 94
771771
772772
773773 VT LEG #380409 v.2
774774 * * * Downtown and Village Center Tax Credits * * * 1
775775 Sec. 24. 32 V.S.A. § 5930ee is amended to read: 2
776776 § 5930ee. LIMITATIONS 3
777777 Beginning in fiscal year 2010 and thereafter, the State Board may award tax 4
778778 credits to all qualified applicants under this subchapter, provided that: 5
779779 (1) the total amount of tax credits awarded annually, together with sales 6
780780 tax reallocated under section 9819 of this title, does not exceed $3,000,000.00 7
781781 $5,000,000.00; 8
782782 * * * 9
783783 * * * Consistency of Flood Planning Requirements * * * 10
784784 Sec. 25. 24 V.S.A. § 4348a is amended to read: 11
785785 § 4348a. ELEMENTS OF A REGIONAL PLAN 12
786786 (a) A regional plan shall be consistent with the goals established in section 13
787787 4302 of this title and shall include the following: 14
788788 * * * 15
789789 (12) A future land use element, based upon the elements in this section, 16
790790 that sets forth the present and prospective location, amount, intensity, and 17
791791 character of such land uses in relation to the provision of necessary community 18
792792 facilities and services and that consists of a map delineating future land use 19
793793 area boundaries for the land uses in subdivisions (A)–(J) of this subdivision 20
794794 (12) as appropriate and any other special land use category the regional 21 BILL AS INTRODUCED S.102
795795 2025 Page 33 of 94
796796
797797
798798 VT LEG #380409 v.2
799799 planning commission deems necessary; descriptions of intended future land 1
800800 uses; and policies intended to support the implementation of the future land use 2
801801 element using the following land use categories: 3
802802 (A) Downtown or village centers. These areas are the mixed-use 4
803803 centers bringing together community economic activity and civic assets. They 5
804804 include downtowns, villages, and new town centers previously designated 6
805805 under chapter 76A and downtowns and village centers seeking benefits under 7
806806 the Community Investment Program under section 5804 of this title. The 8
807807 downtown or village centers are the traditional and historic central business 9
808808 and civic centers within planned growth areas, village areas, or may stand 10
809809 alone. Village centers are not required to have public water, wastewater, 11
810810 zoning, or subdivision bylaws. 12
811811 (B) Planned growth areas. These areas include the high-density 13
812812 existing settlement and future growth areas with high concentrations of 14
813813 population, housing, and employment in each region and town, as appropriate. 15
814814 They include a mix of historic and nonhistoric commercial, residential, and 16
815815 civic or cultural sites with active streetscapes, supported by land development 17
816816 regulations; public water or wastewater, or both; and multimodal transportation 18
817817 systems. These areas include new town centers, downtowns, village centers, 19
818818 growth centers, and neighborhood development areas previously designated 20
819819 under chapter 76A of this title. These areas should generally meet the smart 21 BILL AS INTRODUCED S.102
820820 2025 Page 34 of 94
821821
822822
823823 VT LEG #380409 v.2
824824 growth principles definition in chapter 139 of this title and the following 1
825825 criteria: 2
826826 (i) The municipality has a duly adopted and approved plan and a 3
827827 planning process that is confirmed in accordance with section 4350 of this title 4
828828 and has adopted bylaws and regulations in accordance with sections 4414, 5
829829 4418, and 4442 of this title. 6
830830 (ii) This area is served by public water or wastewater 7
831831 infrastructure. 8
832832 (iii) The area is generally within walking distance from the 9
833833 municipality’s or an adjacent municipality’s downtown, village center, new 10
834834 town center, or growth center. 11
835835 (iv) The Unless the municipality has adopted flood hazard and 12
836836 river corridor bylaws applicable to the entire municipality that are consistent 13
837837 with the standards established pursuant to 10 V.S.A. § 755 (State flood hazard 14
838838 area standards) and 10 V.S.A. § 1428 (river corridor protection), the area 15
839839 excludes identified flood hazard and river corridor areas, except those areas 16
840840 containing preexisting development in areas suitable for infill development as 17
841841 defined in section 29-201 of the Vermont Flood Hazard Area and River 18
842842 Corridor Rule. 19
843843 * * * 20 BILL AS INTRODUCED S.102
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847847 VT LEG #380409 v.2
848848 * * * Wetlands * * * 1
849849 Sec. 26. 10 V.S.A. § 902 is amended to read: 2
850850 § 902. DEFINITIONS 3
851851 Wherever used or referred to in this chapter, unless a different meaning 4
852852 clearly appears from the context: 5
853853 * * * 6
854854 (7) “Class II wetland” means a wetland other than a Class I or Class III 7
855855 wetland that: 8
856856 (A) is a mapped wetland identified on the Vermont significant 9
857857 wetlands inventory maps; or 10
858858 (B) is an unmapped wetland that the Secretary determines to merit 11
859859 protection, pursuant to section 914 of this title, based upon an evaluation of the 12
860860 extent to which it serves the functions and values set forth in subdivision 13
861861 905b(18)(A) of this title and the rules of the Department. 14
862862 (8) “Class III wetland” means a wetland that is neither a Class I wetland 15
863863 nor a Class II wetland. 16
864864 (9) “Buffer zone” means an area contiguous to a significant wetland that 17
865865 protects the wetland’s functions and values. 18
866866 (A) The Except as provided in subdivision (B) of this subdivision (9): 19 BILL AS INTRODUCED S.102
867867 2025 Page 36 of 94
868868
869869
870870 VT LEG #380409 v.2
871871 (i) the buffer zone for a Class I wetland shall extend at least 100 1
872872 feet from the border of the wetland, unless the Department determines 2
873873 otherwise under section 915 of this title. The; and 3
874874 (ii) the buffer zone for a Class II wetland shall extend at least 50 4
875875 feet from the border of the wetland unless the Secretary determines otherwise 5
876876 under section 914 of this title. 6
877877 (B) The buffer zone of a Class II wetland shall be 25 feet when the 7
878878 wetland is located in: 8
879879 (i) an industrial park, as that term is defined in subdivision 212(7) 9
880880 of this title, that is permitted under chapter 151 of this title; 10
881881 (ii) designated centers designated under 24 V.S.A. chapter 76A; 11
882882 (iii) Tier 1A and Tier 1B areas approved by the Land Use Review 12
883883 Board; or 13
884884 (iv) locations meeting the requirements established in subsection 14
885885 6081(z) of this title as eligible for an interim exemption from the permit or 15
886886 permit amendment requirements of chapter 151 of this title. 16
887887 (10) “Panel” means the Water Resources Panel of the Agency of Natural 17
888888 Resources. 18
889889 (11) “Significant wetland” means any Class I or Class II wetland. 19
890890 (12)(11) “Secretary” means the Secretary of Natural Resources or the 20
891891 Secretary’s authorized representative. 21 BILL AS INTRODUCED S.102
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893893
894894
895895 VT LEG #380409 v.2
896896 (13)(12) “Dam removal” has the same meaning as in section 1080 of 1
897897 this title. 2
898898 Sec. 27. 10 V.S.A. § 913 is amended to read: 3
899899 § 913. PROHIBITION 4
900900 (a) Except for allowed uses adopted by the Department by rule, no person 5
901901 shall conduct or allow to be conducted an activity in a significant wetland or 6
902902 buffer zone of a significant wetland except in compliance with a permit, 7
903903 conditional use determination, or order issued by the Secretary. 8
904904 (b) A permit shall not be required under this section for: 9
905905 (1) any activity that occurred before the effective date of this section 10
906906 unless the activity occurred within: 11
907907 (A) an area identified as a wetland on the Vermont significant 12
908908 wetlands inventory maps; 13
909909 (B) a wetland that was contiguous to an area identified as a wetland 14
910910 on the Vermont significant wetlands inventory maps; or 15
911911 (C) the buffer zone of a wetland referred to in subdivision (A) or (B) 16
912912 of this subdivision (1); 17
913913 (2) any construction within a wetland that is identified on the Vermont 18
914914 significant wetlands inventory maps or within the buffer zone of such a 19
915915 wetland, provided that the construction was completed prior to February 23, 20 BILL AS INTRODUCED S.102
916916 2025 Page 38 of 94
917917
918918
919919 VT LEG #380409 v.2
920920 1992, and no action for which a permit is required under the rules of the 1
921921 Department was taken or caused to be taken on or after February 23, 1992; or 2
922922 (3) any construction or activity in an unmapped Class II wetland located 3
923923 in: 4
924924 (i) an industrial park, as that term is defined in subdivision 212(7) 5
925925 of this title, that is permitted under chapter 151 of this title; 6
926926 (ii) designated centers designated under 24 V.S.A. chapter 76A; 7
927927 (iii) Tier 1A and Tier 1B areas approved by the Land Use Review 8
928928 Board; or 9
929929 (iv) locations meeting the requirements established in subsection 10
930930 6081(z) of this title as eligible for an interim exemption from the permit or 11
931931 permit amendment requirements of chapter 151 of this title. 12
932932 Sec. 28. 10 V.S.A. § 914 is amended to read: 13
933933 § 914. WETLANDS DETERMINATIONS 14
934934 (a) The Secretary may, upon a petition or on his or her the Secretary’s own 15
935935 motion, determine whether any wetland is a Class II or Class III wetland. Such 16
936936 The Secretary’s determinations shall be based on an evaluation of the functions 17
937937 and values set forth in subdivision 905b(18)(A) of this title and the rules of the 18
938938 Department. 19
939939 (b) The Secretary may establish the necessary width of the buffer zone of 20
940940 any Class II wetland as part of any wetland determination pursuant to the rules 21 BILL AS INTRODUCED S.102
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944944 VT LEG #380409 v.2
945945 of the Department, except that buffer zone of a Class II wetland shall be 25 1
946946 feet when the wetland is located in: 2
947947 (1) an industrial park, as that term is defined in subdivision 212(7) of 3
948948 this title, that is permitted under chapter 151 of this title; 4
949949 (2) designated centers designated under 24 V.S.A. chapter 76A; 5
950950 (3) Tier 1A and Tier 1B areas approved by the Land Use Review Board; 6
951951 or 7
952952 (4) locations meeting the requirements established in subsection 6081(z) 8
953953 of this title as eligible for an interim exemption from the permit or permit 9
954954 amendment requirements of chapter 151 of this title. 10
955955 * * * 11
956956 Sec. 29. 10 V.S.A. § 918 is amended to read: 12
957957 § 918. NET GAIN OF WETLANDS; STATE GOAL; RULEMAKING 13
958958 (a) On or before July 1, 2025 2026, the Secretary of Natural Resources 14
959959 shall amend the Vermont Wetlands Rules pursuant to 3 V.S.A. chapter 25 to 15
960960 clarify that the goal of wetlands regulation and management in the State is the 16
961961 net gain of wetlands to be achieved through protection of existing wetlands and 17
962962 restoration of wetlands that were previously adversely affected. This condition 18
963963 shall not apply to wetland, river, and flood plain restoration projects, including 19
964964 dam removals. 20 BILL AS INTRODUCED S.102
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968968 VT LEG #380409 v.2
969969 (b)(1) The Vermont Wetlands Rules shall prioritize the protection of 1
970970 existing intact wetlands from adverse effects. 2
971971 (2) Where a permitted activity in a wetland will cause more than 5,000 3
972972 square feet of adverse effects that cannot be avoided, the Secretary shall 4
973973 mandate that the permit applicant restore, enhance, or create wetlands or 5
974974 buffers to compensate for the adverse effects on a wetland. The amount of 6
975975 wetlands to be restored, enhanced, or created shall be calculated, at a 7
976976 minimum, by determining the acreage or square footage of wetlands 8
977977 permanently drained or filled as a result of the permitted activity and 9
978978 multiplying that acreage or square footage by two, to result in a ratio of 2:1 10
979979 restoration to wetland loss, except that a ratio of 1:1 restoration to wetland loss 11
980980 shall apply in: 12
981981 (A) an industrial park, as that term is defined in subdivision 212(7) of 13
982982 this title, that is permitted under chapter 151 of this title; 14
983983 (B) designated centers designated under 24 V.S.A. chapter 76A; 15
984984 (C) Tier 1A and Tier 1B areas approved by the Land Use Review 16
985985 Board; or 17
986986 (D) locations meeting the requirements established in subsection 18
987987 6081(z) of this title as eligible for an interim exemption from the permit or 19
988988 permit amendment requirements of chapter 151 of this title. 20 BILL AS INTRODUCED S.102
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991991
992992 VT LEG #380409 v.2
993993 (3) Establishment of a buffer zone contiguous to a wetland shall not 1
994994 substitute for the restoration, enhancement, or creation of wetlands. Adverse 2
995995 impacts to wetland buffers shall be compensated for based on the effects of the 3
996996 impact on wetland function. 4
997997 * * * 5
998998 Sec. 30. 10 V.S.A. § 919 is amended to read: 6
999999 § 919. WETLANDS PROGRAM REPORTS 7
10001000 (a) On or before April 30, 2025, and annually thereafter, the Secretary of 8
10011001 Natural Resources shall submit to the House Committee on Environment and 9
10021002 Energy and to the Senate Committee on Natural Resources and Energy a report 10
10031003 on annual losses and gains of significant wetlands in the State. The report shall 11
10041004 include: 12
10051005 (1) the location and acreage of Class II wetland and buffer losses 13
10061006 permitted by the Agency in accordance with section 913 of this title, for which 14
10071007 construction of the permitted project has commenced; 15
10081008 (2) the acreage of Class II wetlands and buffers gained through permit-16
10091009 related enhancement and restoration, and an estimate of wetlands gained 17
10101010 through wetlands, river, and floodplain restoration projects, including dam 18
10111011 removals; 19
10121012 (3) the number of site visits and technical assistance calls conducted by 20
10131013 the Agency of Natural Resources, the number of permits processed by the 21 BILL AS INTRODUCED S.102
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10151015
10161016
10171017 VT LEG #380409 v.2
10181018 Agency, and any enforcement actions that were taken by the Agency or the 1
10191019 Office of the Attorney General in the previous year for violations of this 2
10201020 chapter; and 3
10211021 (4) an updated mitigation summary of the extent of wetlands restored 4
10221022 on-site compared with compensation performed off-site, in-lieu fees paid, or 5
10231023 conservation. 6
10241024 * * * 7
10251025 (c) On or before December 15, 2025, the Agency of Natural Resources 8
10261026 shall publish on its website and submit to the House Committee on 9
10271027 Environment and to the Senate Committee on Natural Resources and Energy 10
10281028 wetland guidance on the mitigation and compensation sequence contemplated 11
10291029 in the Vermont Wetland Rules subsections 9.5(b) and (c). The guidance shall 12
10301030 clearly identify the process applicants should follow and the information and 13
10311031 proof necessary to demonstrate a project has practicably avoided and 14
10321032 minimized wetland impacts and is eligible for mitigation during the State 15
10331033 wetland permit application process. 16
10341034 * * * Potable Water Supply and Wastewater System Connections * * * 17
10351035 Sec. 31. 10 V.S.A. § 1971 is amended to read: 18
10361036 § 1971. PURPOSE 19
10371037 It is the purpose of this chapter to: 20 BILL AS INTRODUCED S.102
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10391039
10401040
10411041 VT LEG #380409 v.2
10421042 (1) establish a comprehensive program to regulate the construction, 1
10431043 replacement, modification, and operation of potable water supplies and 2
10441044 wastewater systems in the State in order to protect human health and the 3
10451045 environment, including potable water supplies, surface water, and 4
10461046 groundwater; 5
10471047 * * * 6
10481048 (6) allow delegation of the permitting program created by this chapter to 7
10491049 municipalities demonstrating the capacity to administer the chapter allow 8
10501050 delegation to municipalities of technical review of potable water supply and 9
10511051 wastewater system connections pursuant to the rules of the Agency adopted 10
10521052 under this chapter. 11
10531053 Sec. 32. 10 V.S.A. § 1972 is amended to read: 12
10541054 § 1972. DEFINITIONS 13
10551055 For the purposes of this chapter: 14
10561056 * * * 15
10571057 (6) “Potable water supply” means the source, treatment, and conveyance 16
10581058 equipment used to provide water used or intended to be used for human 17
10591059 consumption, including drinking, washing, bathing, the preparation of food, or 18
10601060 laundering. This definition includes a service connection to a public water 19
10611061 system of any size that does not require a permit pursuant to Chapter 56 of this 20
10621062 title. This definition does not include any internal piping or plumbing, except 21 BILL AS INTRODUCED S.102
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10661066 VT LEG #380409 v.2
10671067 for mechanical systems, such as pump stations and storage tanks or lavatories, 1
10681068 that are located inside a building or structure and that are integral to the 2
10691069 operation of a potable water system. This definition also does not include a 3
10701070 potable water supply that is subject to regulation under chapter 56 of this title. 4
10711071 * * * 5
10721072 (10) “Wastewater system” means any piping, pumping, treatment, or 6
10731073 disposal system used for the conveyance and treatment of sanitary waste or 7
10741074 used water, including carriage water, shower and wash water, and process 8
10751075 wastewater. This definition does not include any internal piping or plumbing, 9
10761076 except for mechanical systems, such as pump stations and storage tanks or 10
10771077 toilets, that are located inside a building or structure and that are integral to the 11
10781078 operation of a wastewater system. This definition also does not include 12
10791079 wastewater systems that are used exclusively for the treatment and disposal of 13
10801080 animal manure. In this chapter, “wastewater system” refers to a soil-based 14
10811081 disposal system of less than 6,500 gallons per day, or a sewerage sanitary 15
10821082 sewer collection system connection of any size. 16
10831083 Sec. 33. 10 V.S.A. § 1973 is amended to read: 17
10841084 § 1973. PERMITS 18
10851085 (a) Except as provided in this section and sections 1974 and 1978 of this 19
10861086 title, a person shall obtain a permit from the Secretary before: 20
10871087 * * * 21 BILL AS INTRODUCED S.102
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10911091 VT LEG #380409 v.2
10921092 (7) making a new or modified connection to a new or existing potable 1
10931093 water supply or wastewater system; or 2
10941094 * * * 3
10951095 (f)(1) The Secretary shall give deference to a certification by a licensed 4
10961096 designer with respect to the engineering design or judgment exercised by the 5
10971097 designer in order to minimize Agency review of certified designs. Nothing in 6
10981098 this section shall limit the responsibility of the licensed designer to comply 7
10991099 with all standards and rules, or the authority of the Secretary to review and 8
11001100 comment on design aspects of an application or to enforce Agency rules with 9
11011101 respect to the design or the design certification. 10
11021102 (2) The Secretary shall issue a permit for a new or modified connection 11
11031103 to a water main and a sewer main or indirect discharge system from a building 12
11041104 or structure in a designated downtown development district upon submission 13
11051105 of an application under subsection (b) of this section that consists solely of the 14
11061106 certification of a licensed designer, in accordance with subsection (d) of this 15
11071107 section, and a letter from the owner of the water main and sewer main or 16
11081108 indirect discharge system allocating the capacity needed to accommodate the 17
11091109 new or modified connection. However, this subdivision (2) shall not apply if 18
11101110 the Secretary finds one of the following: 19
11111111 (A) The Secretary has prohibited the system that submitted the 20
11121112 allocation letter from issuing new allocation letters due to a lack of capacity. 21 BILL AS INTRODUCED S.102
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11161116 VT LEG #380409 v.2
11171117 (B) As a result of an audit of the application performed on a random 1
11181118 basis or in response to a complaint, the system is not designed in accordance 2
11191119 with the rules adopted under this chapter. 3
11201120 * * * 4
11211121 (k)(1) The Secretary shall adopt a general permit for municipal potable 5
11221122 water supply and wastewater system connections that are reviewed by 6
11231123 municipalities with authority delegated pursuant to section 1976 of this 7
11241124 chapter. 8
11251125 (2) The Secretary may adopt by rule general permitting program for 9
11261126 other activities permitted under this section. 10
11271127 Sec. 34. 10 V.S.A. § 1976 is amended to read: 11
11281128 § 1976. DELEGATION OF CONNECTION AUTHORITY TO 12
11291129 MUNICIPALITIES 13
11301130 (a)(1) The Secretary may delegate to a municipality authority to: 14
11311131 (A) implement all sections of this chapter, except for sections 1975 15
11321132 and 1978 of this title; or 16
11331133 (B) implement permitting under this chapter for the subdivision of 17
11341134 land, a building or structure, or a campground when the subdivision, building 18
11351135 or structure, or campground is served by sewerage connections and water 19
11361136 service lines, provided that: 20 BILL AS INTRODUCED S.102
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11391139
11401140 VT LEG #380409 v.2
11411141 (i) the lot, building or structure, or campground utilizes both a 1
11421142 sanitary sewer service line and a water service line; and 2
11431143 (ii) the water main and sanitary sewer collection line that the water 3
11441144 service line and sanitary sewer service line are connected to are owned and 4
11451145 controlled by the delegated municipality. 5
11461146 (2) If a municipality submits a written request for delegation of this 6
11471147 chapter, the Secretary shall delegate authority to the municipality to implement 7
11481148 and administer provisions of this chapter, the rules adopted under this chapter, 8
11491149 and the enforcement provisions of chapter 201 of this title relating to this 9
11501150 chapter, provided that the Secretary is satisfied that the municipality: 10
11511151 (A) has established a process for accepting, reviewing, and processing 11
11521152 applications and issuing permits, that shall adhere to the rules established by 12
11531153 the Secretary for potable water supplies and wastewater systems, including 13
11541154 permits, by rule, for sewerage connections; 14
11551155 (B) has hired, appointed, or retained on contract, or will hire, appoint, 15
11561156 or retain on contract, a licensed designer to perform technical work that must 16
11571157 be done by a municipality under this section to grant permits; 17
11581158 (C) will take timely and appropriate enforcement actions pursuant to 18
11591159 the authority of chapter 201 of this title; 19
11601160 (D) commits to reporting annually to the Secretary on a form and date 20
11611161 determined by the Secretary ; 21 BILL AS INTRODUCED S.102
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11651165 VT LEG #380409 v.2
11661166 (E) will only issue permits for water service lines and sanitary sewer 1
11671167 service lines when there is adequate capacity in the public water supply system 2
11681168 source, wastewater treatment facility, or indirect discharge system; and 3
11691169 (F) will comply with all other requirements of the rules adopted under 4
11701170 section 1978 of this title The Secretary may delegate to a municipality 5
11711171 authority to conduct technical review of municipal potable water supply and 6
11721172 wastewater system connections provided that the water main and sanitary 7
11731173 sewer collection line that the water service line and sanitary sewer service line 8
11741174 are connected to are owned and controlled by the delegated municipality. 9
11751175 (2) If a municipality submits a request for delegation of authority under 10
11761176 this subsection, the Secretary shall delegate authority to the municipality to 11
11771177 implement and administer provisions of this chapter governing municipal 12
11781178 potable water supply and wastewater system connections provided that the 13
11791179 municipality: 14
11801180 (A) is qualified to perform the technical review as determined by the 15
11811181 Secretary; 16
11821182 (B) receives authorization from the municipal legislative body to 17
11831183 administer a program for review of potable water supply and wastewater 18
11841184 system connections; 19
11851185 (C) meets any other requirement for the delegation program as 20
11861186 adopted by the Secretary in writing; 21 BILL AS INTRODUCED S.102
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11901190 VT LEG #380409 v.2
11911191 (D) will only issue permits for water service lines and sanitary sewer 1
11921192 service lines when there is adequate capacity in the public water system, 2
11931193 wastewater treatment facility, or indirect discharge system; and 3
11941194 (E) complies with the requirements for connection and all 4
11951195 requirements of the Agency’s rules adopted under section 1978 of this title. 5
11961196 * * * 6
11971197 (f) The Secretary may review municipal implementation of this section on 7
11981198 a random basis, or in response to a complaint, or on his or her the Secretary’s 8
11991199 own motion. This review may include consideration of the municipal 9
12001200 implementation itself, as well as consideration of the practices, testing 10
12011201 procedures employed, systems designed, system designs approved, installation 11
12021202 procedures used, and any work associated with the performance of these tasks. 12
12031203 Sec. 35. 3 V.S.A. § 2822(j) is amended to read: 13
12041204 (j) In accordance with subsection (i) of this section, the following fees are 14
12051205 established for permits, licenses, certifications, approvals, registrations, orders, 15
12061206 and other actions taken by the Agency of Natural Resources. 16
12071207 * * * 17
12081208 (4) For potable water supply and wastewater permits issued under 10 18
12091209 V.S.A. chapter 64. Projects under this subdivision include: a wastewater 19
12101210 system, including a sewerage sanitary sewer collection system connection; and 20
12111211 a potable water supply, including a connection to a public water supply system: 21 BILL AS INTRODUCED S.102
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12151215 VT LEG #380409 v.2
12161216 (A) Original applications, or major amendments for a project with the 1
12171217 following proposed design flows. In calculating the fee, the highest proposed 2
12181218 design flow whether wastewater or water shall be used: 3
12191219 (i) design flows 560 gpd or less: $306.25 per application; 4
12201220 (ii) design flows greater than 560 and less than or equal to 2,000 5
12211221 gpd: $870.00 per application; 6
12221222 (iii) design flows greater than 2,000 and less than or equal to 7
12231223 6,500 gpd: $3,000.00 per application; 8
12241224 (iv) design flows greater than 6,500 and less than or equal to 9
12251225 10,000 gpd: $7,500.00 per application; 10
12261226 (v) design flows greater than 10,000 gpd: $13,500.00 per 11
12271227 application. 12
12281228 (B) Minor amendments: $150.00. 13
12291229 (C) Minor projects: $270.00. 14
12301230 As used in this subdivision (j)(4)(C), “minor project” means a project 15
12311231 that meets the following: there is an increase in design flow but no 16
12321232 construction is required; there is no increase in design flow, but construction is 17
12331233 required, excluding replacement potable water supplies and wastewater 18
12341234 systems; or there is no increase in design flow and no construction is required, 19
12351235 excluding applications that contain designs that require technical review. 20 BILL AS INTRODUCED S.102
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12391239 VT LEG #380409 v.2
12401240 (D) Notwithstanding the other provisions of this subdivision (4), 1
12411241 when a project is located in a Vermont neighborhood, as designated under 24 2
12421242 V.S.A. chapter 76A, the fee shall be no not more than $50.00 in situations in 3
12431243 which the application has received an allocation for sewer capacity from an 4
12441244 approved municipal system. This limitation shall not apply in the case of fees 5
12451245 charged as part of a duly delegated municipal program. 6
12461246 (E) Projects permitted under a municipal potable water supply or 7
12471247 wastewater system connection general permit as established in 10 V.S.A. 8
12481248 § 1973(i)(1) or as adopted by rule per 10 V.S.A. § 1973(i)(2): $500. 9
12491249 * * * 10
12501250 * * * Municipal Aid for Water Supply and Water Pollution Abatement and 11
12511251 Control * * * 12
12521252 Sec. 36. 10 V.S.A. § 1628 is amended to read: 13
12531253 § 1628. PRIORITIES 14
12541254 (a) The Department shall make grant awards under this chapter to eligible 15
12551255 municipal water pollution abatement and control projects on the basis of need 16
12561256 as determined according to a system of priorities adopted by rule by the 17
12571257 Department and to the extent appropriate funds are available. The system of 18
12581258 priorities shall require consideration of criteria, including: 19
12591259 (1) whether a project is grant or loan eligible; 20 BILL AS INTRODUCED S.102
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12631263 VT LEG #380409 v.2
12641264 (2) the condition of the waters affected by the project and whether the 1
12651265 waters are: 2
12661266 (A) not in compliance with the Vermont Water Quality Standards; or 3
12671267 (B) have a total maximum daily load (TMDL); 4
12681268 (3) whether the project will address water quality issues identified in a 5
12691269 basin plan; 6
12701270 (4) whether the project will abate or control pollution that is causing or 7
12711271 may cause a threat to public health; 8
12721272 (5) whether the project will address an emergency situation affecting or 9
12731273 constituting a threat to the environment or the public health, safety, or welfare; 10
12741274 (6) if the project repairs or replaces existing infrastructure, the condition 11
12751275 and integrity of such infrastructure; 12
12761276 (7) whether the project incorporates principles of environmental 13
12771277 resiliency or sustainability, including energy efficiency, which reduce the 14
12781278 environmental impacts of the project or a water pollution abatement and 15
12791279 control facility; 16
12801280 (8) the fiscal integrity and sustainability of the project, including 17
12811281 whether the project is a cost-effective alternative, when compared to other 18
12821282 alternatives; 19
12831283 (9) whether the project serves a designated center; 20 BILL AS INTRODUCED S.102
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12861286
12871287 VT LEG #380409 v.2
12881288 (10) affordability factors for the municipality or municipalities in which 1
12891289 the project is located, including: 2
12901290 (A) median household income; 3
12911291 (B) unemployment rate; and 4
12921292 (C) population trends; and 5
12931293 (11) if the project removes a pollutant for which the water or waters 6
12941294 affected by the project are impaired, the cost-effectiveness of the project at 7
12951295 removing that pollutant. 8
12961296 (b) Notwithstanding any other provision of law, the demonstration 9
12971297 requirements of the Agency of Natural Resources, Department of 10
12981298 Environmental Conservation, Environmental Protection Rules, Chapter 2 - 11
12991299 Municipal Pollution Control Priority System, Subchapter 300, shall be met 12
13001300 when the municipality making application for funding under this chapter 13
13011301 certifies that the project shall include service for new housing units or 14
13021302 wastewater capacity shall be reserved for new housing units. 15
13031303 * * * Vermont Rental Housing Improvement Program * * * 16
13041304 Sec. 37. 10 V.S.A. § 699 is amended to read: 17
13051305 § 699. VERMONT RENTAL HOUSING IMPROVEMENT PROGRAM 18
13061306 (a) Creation of Program. 19
13071307 * * * 20 BILL AS INTRODUCED S.102
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13101310
13111311 VT LEG #380409 v.2
13121312 (5)(A) The Department may cooperate with and subgrant funds to State 1
13131313 agencies and governmental subdivisions and public and private organizations 2
13141314 in order to carry out the purposes of this subsection. 3
13151315 (B) Entities carrying out the provisions of this section, including 4
13161316 grantees, subgrantees, and contractors of the State, shall be exempt from the 5
13171317 provisions of 8 V.S.A. chapter 73 (licensed lenders, mortgage brokers, 6
13181318 mortgage loan originators, sales finance companies, and loan solicitation 7
13191319 companies). 8
13201320 * * * 9
13211321 (d) Program requirements applicable to grants and forgivable loans. 10
13221322 (1)(A) A grant or loan shall not exceed: 11
13231323 (i) $70,000.00 per unit, for rehabilitation or creation of an eligible 12
13241324 rental housing unit meeting the applicable building accessibility requirements 13
13251325 under the Vermont Access Rules; or 14
13261326 (ii) $50,000.00 per unit, for rehabilitation or creation of any other 15
13271327 eligible rental housing unit. Up to an additional $20,000.00 per unit may be 16
13281328 made available for specific elements that collectively bring the unit to the 17
13291329 visitable standard outlined in the rules adopted by the Vermont Access Board. 18
13301330 * * * 19 BILL AS INTRODUCED S.102
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13331333
13341334 VT LEG #380409 v.2
13351335 (e) Program requirements applicable to grants and five-year forgivable 1
13361336 loans. For a grant or five-year forgivable loan awarded through the Program, 2
13371337 the following requirements apply for a minimum period of five years: 3
13381338 (1) A landlord shall coordinate with nonprofit housing partners and local 4
13391339 coordinated entry homelessness service organizations approved by the 5
13401340 Department to identify potential tenants. 6
13411341 (2)(A) Except as provided in subdivision (2)(B) of this subsection (e), a 7
13421342 landlord shall lease the unit to a household that is: 8
13431343 (i) exiting homelessness, including any individual under 25 years 9
13441344 of age who secures housing through a master lease held by a youth service 10
13451345 provider on behalf of individuals under 25 years of age; 11
13461346 (ii) actively working with an immigrant or refugee resettlement 12
13471347 program; or 13
13481348 (iii) composed of at least one individual with a disability who 14
13491349 receives or is eligible approved to receive Medicaid-funded home and 15
13501350 community based services or Social Security Disability Insurance; or 16
13511351 (iv) with approval from the Department in writing, an organization 17
13521352 that will hold a master lease that explicitly states the unit will be used in 18
13531353 service of the populations described in this subsection (e). 19
13541354 * * * 20 BILL AS INTRODUCED S.102
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13581358 VT LEG #380409 v.2
13591359 (4)(A) A landlord may convert a grant to a forgivable loan upon 1
13601360 approval of the Department and the housing organization that approved the 2
13611361 grant. 3
13621362 (B) A landlord who converts a grant to a forgivable loan shall receive 4
13631363 a 10-percent prorated credit for loan forgiveness for each year in which the 5
13641364 landlord participates in the Program. 6
13651365 (f) Requirements applicable to 10-year forgivable loans. For a 10-year 7
13661366 forgivable loan awarded through the Program, the following requirements 8
13671367 apply for a minimum period of 10 years: 9
13681368 (1) A landlord shall coordinate with nonprofit housing partners and local 10
13691369 coordinated entry organizations to identify potential tenants The total cost of 11
13701370 rent for the unit, including utilities not covered by rent payments, shall not 12
13711371 exceed the applicable fair market rent established by the Department of 13
13721372 Housing and Urban Development, except that a landlord may accept a housing 14
13731373 voucher that exceeds fair market rent, if available. 15
13741374 (2)(A) Except as provided in subdivision (2)(B) of this subsection (f), a 16
13751375 landlord shall lease the unit to a household that is: 17
13761376 (i) exiting homelessness, including any individual under 25 years 18
13771377 of age who secures housing through a master lease held by a youth service 19
13781378 provider on behalf of individuals under 25 years of age; 20 BILL AS INTRODUCED S.102
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13821382 VT LEG #380409 v.2
13831383 (ii) actively working with an immigrant or refugee resettlement 1
13841384 program; or 2
13851385 (iii) composed of at least one individual with a disability who is 3
13861386 eligible to receive Medicaid-funded home and community based services. 4
13871387 (B) If, upon petition of the landlord, the Department or the housing 5
13881388 organization that issued the grant determines that a household under 6
13891389 subdivision (2)(A) of this subsection (f) is not available to lease the unit, then 7
13901390 the landlord shall lease the unit: 8
13911391 (i) to a household with an income equal to or less than 80 percent 9
13921392 of area median income; or 10
13931393 (ii) if such a household is unavailable, to another household with 11
13941394 the approval of the Department or housing organization. 12
13951395 (3)(A) A landlord shall accept any housing vouchers that are available to 13
13961396 pay all, or a portion of, the tenant’s rent and utilities. 14
13971397 (B) If no housing voucher or federal or State subsidy is available, the 15
13981398 cost of rent for the unit, including utilities not covered by rent payments, shall 16
13991399 not exceed the applicable fair market rent established by the Department of 17
14001400 Housing and Urban Development. 18
14011401 (4) The Department shall forgive 10 percent of the amount of a 19
14021402 forgivable loan for each year a landlord participates in the loan program. 20
14031403 * * * 21 BILL AS INTRODUCED S.102
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14081408 (i) Creation of the Vermont Rental Housing Improvement Program 1
14091409 Revolving Fund. Funds repaid or returned to the Department from forgivable 2
14101410 loans or grants funded by the Program shall return to the Vermont Rental 3
14111411 Housing Improvement Revolving Fund to be used for Program expenditures 4
14121412 and administrative costs at the discretion of the Department. 5
14131413 * * * MHIR * * * 6
14141414 Sec. 38. 10 V.S.A. § 700 is added to read: 7
14151415 § 700. VERMONT MANUFACTURED HOME IMPROVEMENT AND 8
14161416 REPAIR PROGRAM 9
14171417 (a) There is created within the Department of Housing and Community 10
14181418 Development the Manufactured Home Improvement and Repair Program. The 11
14191419 Department shall design and implement the Program to award funding to 12
14201420 statewide or regional nonprofit housing organizations, or both, to provide 13
14211421 financial assistance or awards to manufactured homeowners and manufactured 14
14221422 home park owners to improve existing homes, incentivize new slab placement 15
14231423 for prospective homeowners, and incentivize park improvements for infill of 16
14241424 more homes. 17
14251425 (b) The following projects are eligible for funding through the Program: 18
14261426 (1) The Department may award up to $20,000.00 to owners of 19
14271427 manufactured housing communities to complete small-scale capital needs to 20
14281428 help infill vacant lots with homes, including disposal of abandoned homes, lot 21 BILL AS INTRODUCED S.102
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14331433 grading and preparation, the siting and upgrading of electrical boxes, 1
14341434 enhancing E911 safety issues, transporting homes out of flood zones, and 2
14351435 improving individual septic systems. Costs awarded under this subdivision 3
14361436 may also cover legal fees and marketing to help make it easier for home-4
14371437 seekers to find vacant lots around the State. 5
14381438 (2) The Department may award funding to manufactured homeowners 6
14391439 for which the home is their primary residence to address habitability and 7
14401440 accessibility issues to bring the home into compliance with safe living 8
14411441 conditions. 9
14421442 (3) The Department may award up to $15,000.00 per grant to a 10
14431443 homeowner to pay for a foundation or federal Department of Housing and 11
14441444 Urban Development approved slab, site preparation, skirting, tie-downs, and 12
14451445 utility connections on vacant lots within a manufactured home community. 13
14461446 (c) The Department may adopt rules, policies, and guidelines to aid in 14
14471447 enacting the Program. 15
14481448 * * * Tax Increment Financing * * * 16
14491449 Sec. 39. 24 V.S.A. chapter 53, subchapter 7 is added to read: 17
14501450 SUBCHAPTER 7. Strategic Projects for Advancing Rural Communities 18
14511451 § 1907. DEFINITIONS 19
14521452 As used in this subchapter: 20 BILL AS INTRODUCED S.102
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14571457 (1) “Committed” means pledged and appropriated for the purpose of the 1
14581458 current and future payment of financing and related costs. 2
14591459 (2) “Community agreement” means a binding legal contract negotiated 3
14601460 between a municipality and a person to initiate a SPARC project on behalf of 4
14611461 the municipality. 5
14621462 (3) “Community investment partner” means a person who enters into a 6
14631463 community agreement with a municipality. 7
14641464 (4) “Coordinating agency” means any public or private entity from 8
14651465 outside a municipality’s departments or offices and not employing the 9
14661466 municipality’s staff that has been designated by the municipality to administer 10
14671467 and coordinate a SPARC project during creation, public hearing process, 11
14681468 approval process, or administration and operation of the SPARC project, 12
14691469 including overseeing infrastructure development, real property development 13
14701470 and redevelopment, assisting with reporting, and ensuring compliance with 14
14711471 statute and rule. 15
14721472 (5) “Financing” means debt incurred, including principal, interest, and 16
14731473 any fees or charges directly related to that debt, or other instruments or 17
14741474 borrowing used by a municipality to pay for an approved SPARC project and 18
14751475 related costs for the SPARC project. Payment for related costs may also 19
14761476 include direct payment by the municipality consistent with the terms of the 20
14771477 community agreement. 21 BILL AS INTRODUCED S.102
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14821482 (6) “Improvements” means the installation, new construction, or 1
14831483 reconstruction of infrastructure or development that will serve a public 2
14841484 purpose, including housing, flood resiliency, flood mitigation, brownfield 3
14851485 remediation, utilities, digital infrastructure, transportation, public recreation, 4
14861486 commercial and industrial facilities, public facilities and amenities, land and 5
14871487 property acquisition and demolition, and site preparation. For remediation of a 6
14881488 brownfield, this shall include the cost of the site preparation needed to 7
14891489 stimulate development or redevelopment in the SPARC site as identified in 8
14901490 clean-up documentation approved by the Vermont Agency of Natural 9
14911491 Resources. “Improvements” also means the funding of debt service interest 10
14921492 payments. 11
14931493 (7) “Legislative body” means the mayor and alderboard, the city 12
14941494 council, the selectboard, and the president and trustees of an incorporated 13
14951495 village, as appropriate. 14
14961496 (8) “Municipality” means a city, town, or incorporated village. 15
14971497 (9) “Original taxable value” means the total valuation as determined in 16
14981498 accordance with 32 V.S.A. chapter 129 of all taxable real property located 17
14991499 within the SPARC site as of the creation date, provided that no parcel within 18
15001500 the project shall be divided or bisected. 19
15011501 (10) “Related costs” means expenses incurred and paid by the 20
15021502 municipality or a community investment partner consistent with the 21 BILL AS INTRODUCED S.102
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15071507 community agreement, exclusive of the actual cost of constructing and 1
15081508 financing improvements, that are directly related to the creation and 2
15091509 implementation of the SPARC project, including reimbursement of sums 3
15101510 previously advanced by the municipality or a community investment partner 4
15111511 for those purposes and use of a coordinating agency. Related costs do not 5
15121512 include direct municipal or community investment partner expenses such as 6
15131513 departmental or personnel costs. 7
15141514 (11) “SPARC project” means an improvement, as defined in subdivision 8
15151515 (6) of this section (a). A SPARC project must meet one of the following six 9
15161516 criteria: 10
15171517 (A) The development will improve flood resiliency by protecting the 11
15181518 functions of watersheds, adapting critical infrastructure, or enhancing 12
15191519 emergency preparedness. 13
15201520 (B) The development will include the purchase and improvement of 14
15211521 flood-prone property or mitigate flood damage by elevating, floodproofing or 15
15221522 relocating existing structures or creating new, elevated, comparable structures. 16
15231523 (C) The development includes new or rehabilitated housing. 17
15241524 (D) The SPARC project will affect the remediation and 18
15251525 redevelopment of a brownfield. As used in this subchapter, “brownfield” 19
15261526 means an area in which a hazardous substance, pollutant, or contaminant is or 20 BILL AS INTRODUCED S.102
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15311531 may be present, and that situation is likely to complicate the expansion, 1
15321532 development, redevelopment, or reuse of the property. 2
15331533 (E) The development will include at least one entirely new business 3
15341534 or business operation or expansion of an existing business within the SPARC 4
15351535 site, and this business will provide new, quality, full-time jobs that meet or 5
15361536 exceed the prevailing wage for the region as reported by the Department of 6
15371537 Labor. 7
15381538 (F) The development will enhance transportation and public 8
15391539 recreation by creating improved traffic patterns and flow or creating or 9
15401540 improving public transportation systems, including development of 10
15411541 recreational trail systems. 11
15421542 (11) “SPARC site” means an area and adjoining parcels where approved 12
15431543 development or redevelopment is occurring. 13
15441544 § 1908. PROGRAM CREATION; GENERAL AUTHORITY; OPERATION 14
15451545 (a) Program. The Vermont Economic Progress Council is authorized to 15
15461546 approve SPARC projects and to finance municipal investments within a 16
15471547 SPARC site or to provide financing to a community investment partner 17
15481548 consistent with the terms of the community agreement. 18
15491549 (b) General authority. Under the program established in subsection (a) of 19
15501550 this section, a municipality, upon approval of the community agreement by its 20 BILL AS INTRODUCED S.102
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15551555 legislative body, may apply to the Vermont Economic Progress Council to use 1
15561556 financing for a SPARC project. 2
15571557 (c) Approval process. The Vermont Economic Progress Council shall do 3
15581558 all of the following to approve an application: 4
15591559 (1) Application review. 5
15601560 (A) Review each application to determine that the improvements 6
15611561 proposed to serve the SPARC site and the proposed development in the 7
15621562 SPARC site would not have occurred as proposed in the application or would 8
15631563 have occurred in a significantly different and less desirable manner than as 9
15641564 proposed in the application, but for the proposed utilization of the incremental 10
15651565 tax revenues. 11
15661566 (B) The review shall take into account: 12
15671567 (i) the amount of additional time, if any, needed to complete the 13
15681568 proposed development within the SPARC site and the amount of additional 14
15691569 cost that might be incurred if the SPARC project were to proceed without 15
15701570 financing; 16
15711571 (ii) the lack of new construction in the municipality, indicated by a 17
15721572 stagnant or declining grand list value as determined by the Department of 18
15731573 Taxes, considering both the total full listed value and the equalized education 19
15741574 grand list value, or the documented need for housing in the municipality as 20
15751575 stated in the most recent housing needs assessment; and 21 BILL AS INTRODUCED S.102
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15801580 (iii)(I) the amount of additional revenue expected to be generated 1
15811581 as a result of the proposed SPARC project; 2
15821582 (II) the sufficiency of that incremental revenue to cover the 3
15831583 incurred debt; 4
15841584 (III) the percentage of that revenue that shall be paid to the 5
15851585 Education Fund; 6
15861586 (IV) the percentage that shall be paid to the municipality; and 7
15871587 (V) the percentage of the revenue paid to the municipality that 8
15881588 shall be used to pay financing incurred for development of the SPARC project 9
15891589 and related costs. 10
15901590 (2) Process requirements. Determine that each application meets all of 11
15911591 the following requirements: 12
15921592 (A) The municipality held public hearings and established a SPARC 13
15931593 site. 14
15941594 (B) The municipality has developed a SPARC financing plan, 15
15951595 including a project description; a development financing plan; a pro forma 16
15961596 projection of expected costs; a projection of revenues; evidence that the 17
15971597 municipality is actively seeking or has obtained other sources of funding and 18
15981598 investment; and a development schedule that includes a list, a cost estimate, 19
15991599 and a schedule for public improvements and projected private development to 20
16001600 occur as a result of the improvements. The life of the project begins at 12:01 21 BILL AS INTRODUCED S.102
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16051605 a.m. on April 1 of the calendar year the Vermont Economic Progress Council 1
16061606 approves the SPARC project plan according to the terms set forth in 2
16071607 subdivision (f)(3) and subsection (g) of this section. 3
16081608 (C) The municipality has approved or pledged the utilization of 4
16091609 incremental municipal tax revenues for the purposes of the SPARC project in 5
16101610 the proportion set forth in subdivision (g)(2) of this section. 6
16111611 (3) The Vermont Economic Progress Council shall determine there is a 7
16121612 relationship between the improvement and the expected development and 8
16131613 redevelopment for the SPARC project and expected outcomes. 9
16141614 (d) Incurring indebtedness. 10
16151615 (1) A municipality approved under the process set forth in subsection (c) 11
16161616 of this section may incur indebtedness against revenues of the SPARC site to 12
16171617 provide funding to pay for improvements and related costs for the SPARC 13
16181618 project development. 14
16191619 (2) Notwithstanding any provision of any municipal charter, the 15
16201620 municipality shall only require one authorizing vote to incur debt through one 16
16211621 instance of borrowing to finance or otherwise pay for the tax increment 17
16221622 financing project improvements and related costs; provided, however, that a 18
16231623 municipality may present one or more subsequent authorization votes in the 19
16241624 event a vote fails. The municipality shall be authorized to incur indebtedness 20
16251625 only after the legal voters of the municipality, by a majority vote of all voters 21 BILL AS INTRODUCED S.102
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16301630 present and voting on the question at a special or annual municipal meeting 1
16311631 duly warned for the purpose, authorize the legislative body to pledge the credit 2
16321632 of the municipality, borrow, or otherwise secure the debt for the specific 3
16331633 purposes so warned. 4
16341634 (3) Any indebtedness shall be incurred within five years following the 5
16351635 date of approval by the Vermont Economic Progress Council. A bond 6
16361636 anticipation note is not considered a first or last incurrence of debt. The 7
16371637 Vermont Economic Progress Council may extend the period of time to incur 8
16381638 debt for a period not to exceed three years. 9
16391639 (4) A municipal legislative body shall provide information to the 10
16401640 public prior to the public vote required under subdivision (2) of this subsection. 11
16411641 This information shall include the amount and types of debt and related costs 12
16421642 to be incurred, including principal, interest, and fees; terms of the debt; the 13
16431643 improvements to be financed; the expected development to occur because of 14
16441644 the improvements; and notice to the voters that if the tax increment received by 15
16451645 the municipality from any property tax source is insufficient to pay the 16
16461646 principal and interest on the debt in any year, for whatever reason, including a 17
16471647 decrease in property value or repeal of a State property tax source, unless 18
16481648 determined otherwise at the time of such repeal, the municipality shall remain 19
16491649 liable for the full payment of the principal and interest for the term of 20
16501650 indebtedness. If interfund loans within the municipality are used, the 21 BILL AS INTRODUCED S.102
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16551655 information must also include documentation of the terms and conditions of 1
16561656 such loan. If interfund loans within the municipality are used as a method of 2
16571657 financing, no interest shall be charged. 3
16581658 (e) Original taxable value. As of the date the project is approved by the 4
16591659 Vermont Economic Progress Council, the lister or assessor for the municipality 5
16601660 shall certify the original taxable value and shall certify to the Vermont 6
16611661 Economic Progress Council in each year thereafter during the life of the 7
16621662 SPARC site the amount by which the total valuation as determined in 8
16631663 accordance with 32 V.S.A. chapter 129 of all taxable real property located 9
16641664 within the SPARC site has increased or decreased relative to the original 10
16651665 taxable value. 11
16661666 (f) Incremental community enhancements. 12
16671667 (1) In each year following the approval of the SPARC site, the lister or 13
16681668 assessor shall include not more than the original taxable value of the real 14
16691669 property in the assessed valuation upon which the treasurer computes the rates 15
16701670 of all taxes levied by the municipality and every other taxing district in which 16
16711671 the SPARC site is situated, but the treasurer shall extend all rates so 17
16721672 determined against the entire assessed valuation of real property for that year. 18
16731673 In each year, the municipality shall hold apart, rather than remit to the taxing 19
16741674 districts, that proportion of all taxes paid that year on the real property within 20
16751675 the SPARC site that the excess valuation bears to the total assessed valuation. 21 BILL AS INTRODUCED S.102
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16801680 The amount held apart each year is the “incremental community enhancement” 1
16811681 for that year. Not more than the percentages established pursuant to subsection 2
16821682 (g) of this section of the municipal and State education tax increments received 3
16831683 with respect to the SPARC site and committed for the payment for financing 4
16841684 for improvements and related costs shall be segregated by the municipality in a 5
16851685 special SPARC financing project account and in its official books and records 6
16861686 until all capital indebtedness of the project has been fully paid. The final 7
16871687 payment shall be reported to the treasurer, who shall thereafter include the 8
16881688 entire assessed valuation of the SPARC site in the assessed valuations upon 9
16891689 which municipal and other tax rates are computed and extended and thereafter 10
16901690 no taxes from the SPARC site shall be deposited in the SPARC site’s SPARC 11
16911691 financing project account. 12
16921692 (2) In each year, a municipality shall remit not less than the aggregate 13
16931693 tax due on the original taxable value to the Education Fund. 14
16941694 (3) Notwithstanding any charter provision or other provision, all 15
16951695 property taxes assessed within a SPARC site shall be subject to the provision 16
16961696 of subdivision (1) of this subsection. Special assessments levied under chapter 17
16971697 76A or 87 of this title or under a municipal charter shall not be considered 18
16981698 property taxes for the purpose of this section if the proceeds are used 19
16991699 exclusively for operating expenses related to properties within the SPARC site. 20 BILL AS INTRODUCED S.102
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17041704 (4) Amounts held apart under subdivision (1) of this subsection shall 1
17051705 only be used for financing and related costs as defined in section 1907 of this 2
17061706 subchapter. 3
17071707 (g) Use of incremental community enhancement. 4
17081708 (1) Use of the education property tax increment. For only debt incurred 5
17091709 within the period permitted under subdivision (d)(3) of this section after 6
17101710 approval of the project, up to 100 percent of the education tax increment may 7
17111711 be retained to service the debt and related costs, beginning with the first year in 8
17121712 which debt is incurred for the SPARC project. Upon incurring the first debt, a 9
17131713 municipality shall notify the Department of Taxes and the Vermont Economic 10
17141714 Progress Council of the beginning of the retention period of the education tax 11
17151715 increment. 12
17161716 (2) Use of the municipal property tax increment. For only debt incurred 13
17171717 within the period permitted under subdivision (d)(3) of this section after 14
17181718 approval of the project, not less than 100 percent of the municipal tax 15
17191719 increment shall be retained to service the debt and related costs, beginning the 16
17201720 first year in which debt is incurred for the project. 17
17211721 (3) Retention period. Retention of tax increment shall continue until all 18
17221722 debt is retired. 19
17231723 (h) Distribution. Of the municipal and education tax increments received 20
17241724 in any tax year that exceed the amounts committed for the payment of the 21 BILL AS INTRODUCED S.102
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17291729 financing for improvements and related costs for the SPARC project, equal 1
17301730 portions of each increment may be retained for the following purposes: 2
17311731 prepayment of principal and interest on the financing, placed in a special 3
17321732 account required by subdivision (f)(1) of this section and used for future 4
17331733 financing payments, or used for defeasance of the financing. Any remaining 5
17341734 portion of the excess municipal tax increment shall be distributed to the city, 6
17351735 town, or village budget, in the proportion that each budget bears to the 7
17361736 combined total of the budgets, unless otherwise negotiated by the city, town, or 8
17371737 village, and any remaining portion of the excess education tax increment shall 9
17381738 be distributed to the Education Fund. 10
17391739 (i) Information reporting. A municipality with a SPARC project approved 11
17401740 pursuant to this section shall: 12
17411741 (1) Develop a system, segregated for the SPARC project, to identify, 13
17421742 collect, and maintain all data and information necessary to fulfill the reporting 14
17431743 requirements of this section, including performance measures as outlined in the 15
17441744 community agreement. 16
17451745 (2) Provide, as required by events, notification to the Vermont 17
17461746 Economic Progress Council and the Department of Taxes regarding any 18
17471747 SPARC project debt obligations, public votes, or votes by the municipal 19
17481748 legislative body immediately following such obligation or vote on a form 20
17491749 prescribed by the Council, including copies of public notices, agendas, 21 BILL AS INTRODUCED S.102
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17541754 minutes, vote tally, and a copy of the information provided to the public in 1
17551755 accordance with subdivision (d)(4) of this section. 2
17561756 (3) Ensure that the SPARC financing project account required by 3
17571757 subdivision (f)(1) of this section is subject to the annual audit prescribed in 4
17581758 subsection (j) of this section. Procedures shall include verification of the 5
17591759 original taxable value and annual and total municipal and education tax 6
17601760 increments generated, expenditures for debt and related costs, and current 7
17611761 balance. 8
17621762 (j) Audit; financial reports. Annually on or before April 1, until the year 9
17631763 following the end of the period for retention of education tax increment, a 10
17641764 municipality with a SPARC project approved under this section shall ensure 11
17651765 that the SPARC project is subject to the annual audit prescribed in sections 12
17661766 1681 and, if applicable, 1690 of this title and submit a copy of the audit report 13
17671767 to the Vermont Economic Progress Council. In the event that the SPARC 14
17681768 project is only subject to the audit under section 1681 of this title, the Vermont 15
17691769 Economic Progress Council shall ensure a process is in place to subject the 16
17701770 SPARC project to an independent audit. Procedures for the audit must include 17
17711771 verification of the original taxable value and annual and total municipal and 18
17721772 education tax increments generated, expenditures for debt and related costs, 19
17731773 and current balance. 20 BILL AS INTRODUCED S.102
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17771777 VT LEG #380409 v.2
17781778 (k) Authority to issue decisions. The Vermont Economic Progress Council, 1
17791779 after reasonable notice to a municipality, is authorized to issue decisions to a 2
17801780 municipality on questions and inquiries concerning the administration of 3
17811781 SPARC projects, statutes, rules, noncompliance with this section, and any 4
17821782 instances of noncompliance. The Vermont Economic Progress Council shall 5
17831783 deliberate and vote and may consult with the Commissioner of Taxes, the 6
17841784 Attorney General, and the State Treasurer. 7
17851785 Sec. 40. 24 V.S.A. § 1891 is amended to read: 8
17861786 § 1891. DEFINITIONS 9
17871787 As used in this subchapter: 10
17881788 * * * 11
17891789 (4) “Improvements” means the installation, new construction, or 12
17901790 reconstruction of infrastructure or municipal capital assets that will serve a 13
17911791 public purpose and fulfill the purpose of tax increment financing districts as 14
17921792 stated in section 1893 of this subchapter, including utilities, transportation, 15
17931793 public facilities and amenities, land and property acquisition and demolition, 16
17941794 and site preparation. “Improvements” also means the funding of debt service 17
17951795 interest payments for a period of up to two four years, beginning on the date on 18
17961796 which the first debt is incurred. 19
17971797 * * * 20 BILL AS INTRODUCED S.102
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18021802 (7) “Financing” means debt incurred, including principal, interest, and 1
18031803 any fees or charges directly related to that debt, or other instruments or 2
18041804 borrowing used by a municipality to pay for improvements in a tax increment 3
18051805 financing district, only if authorized by the legal voters of the municipality in 4
18061806 accordance with section 1894 of this subchapter. Payment for the cost of 5
18071807 district improvements may also include direct payment by the municipality 6
18081808 using the district increment. However, such payment is also subject to a vote 7
18091809 by the legal voters of the municipality in accordance with section 1894 of this 8
18101810 subchapter and, if not included in the tax increment financing plan approved 9
18111811 under subsection 1894(d) of this subchapter, is also considered a substantial 10
18121812 change and subject to the review process provided by subdivision 1901(2)(B) 11
18131813 of this subchapter. If interfund loans within the municipality are used as the 12
18141814 method of financing, no interest shall be charged. Bond anticipation notes may 13
18151815 be used as a method of financing; provided, however, that bond anticipation 14
18161816 notes shall not be considered a first or last incurrence of debt pursuant to 15
18171817 subsection 1894(a) of this subchapter. 16
18181818 * * * 17
18191819 Sec. 41. 24 V.S.A. § 1892 is amended to read: 18
18201820 § 1892. CREATION OF DISTRICT 19
18211821 * * * 20 BILL AS INTRODUCED S.102
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18251825 VT LEG #380409 v.2
18261826 (b) When adopted by the act of the legislative body of that municipality, 1
18271827 the plan shall be recorded with the municipal clerk and lister or assessor. The 2
18281828 plan shall be presented to the Vermont Economic Progress Council for 3
18291829 approval, and the creation of the district shall occur at 12:01 a.m. on April 1 of 4
18301830 the calendar year so voted by the municipal legislative body Vermont 5
18311831 Economic Progress Council. 6
18321832 * * * 7
18331833 (e) On or before January 15, 2018, the Joint Fiscal Office, with the 8
18341834 assistance of the consulting Legislative Economist, the Department of Taxes, 9
18351835 the State Auditor, and the Agency of Commerce and Community Development 10
18361836 in consultation with the Vermont Economic Progress Council, shall examine 11
18371837 and report to the General Assembly on the use of both tax increment financing 12
18381838 districts and other policy options for State assistance to municipalities for 13
18391839 funding infrastructure in support of economic development and the capacity of 14
18401840 Vermont to utilize TIF districts moving forward. [Repealed.] 15
18411841 (f) The report shall include: 16
18421842 (1) a recommendation for a sustainable statewide capacity level for TIFs 17
18431843 or comparable economic development tools and relevant permitting criteria; 18
18441844 (2) the positive and negative impacts on the State’s fiscal health of TIFs 19
18451845 and other tools, including the General Fund and Education Fund; 20 BILL AS INTRODUCED S.102
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18491849 VT LEG #380409 v.2
18501850 (3) the economic development impacts on the State of TIFs and other 1
18511851 tools, both positive and negative; 2
18521852 (4) the mechanics for ensuring geographic diversity of TIFs or other 3
18531853 tools throughout the State; and 4
18541854 (5) the parameters of TIFs and other tools in other states. [Repealed.] 5
18551855 * * * 6
18561856 Sec. 42. 24 V.S.A. § 1894(a) is amended to read: 7
18571857 (a) Incurring indebtedness. 8
18581858 (1) A municipality approved under 32 V.S.A. § 5404a(h) may incur 9
18591859 indebtedness against revenues of the tax increment financing district at any 10
18601860 time during a period of up to five years following the creation of the district. If 11
18611861 no debt is incurred during this five-year period, the district shall terminate, 12
18621862 unless the Vermont Economic Progress Council grants an extension to a 13
18631863 municipality pursuant to subsection (d) of this section. However, if any 14
18641864 indebtedness is incurred within the first five years after the creation of the 15
18651865 district, then the district has a total of ten years after the creation of the district 16
18661866 to incur any additional debt. 17
18671867 (2) Any indebtedness incurred under subdivision (1) of this subsection 18
18681868 may be retired over any period authorized by the legislative body of the 19
18691869 municipality. 20 BILL AS INTRODUCED S.102
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18731873 VT LEG #380409 v.2
18741874 (3) The district shall continue until the date and hour the indebtedness is 1
18751875 retired or, if no debt is incurred, five years following the creation of the 2
18761876 district. 3
18771877 (4) Indebtedness is incurred upon final execution of a debt instrument. 4
18781878 Sec. 43. 24 V.S.A. § 1896 is amended to read: 5
18791879 § 1896. TAX INCREMENTS 6
18801880 (a) In each year following the creation of the district, the listers or assessor 7
18811881 shall include not more than the original taxable value of the real property in the 8
18821882 assessed valuation upon which the treasurer computes the rates of all taxes 9
18831883 levied by the municipality and every other taxing district in which the tax 10
18841884 increment financing district is situated; but the treasurer shall extend all rates 11
18851885 so determined against the entire assessed valuation of real property for that 12
18861886 year. In each year, the municipality shall hold apart, rather than remit to the 13
18871887 taxing districts, that proportion of all taxes paid that year on the real property 14
18881888 in the district that the excess valuation bears to the total assessed valuation. 15
18891889 The amount held apart each year is the “tax increment” for that year. Not more 16
18901890 than the percentages established pursuant to section 1894 of this subchapter of 17
18911891 the municipal and State education tax increments received with respect to the 18
18921892 district and committed for the payment for financing for improvements and 19
18931893 related costs shall be segregated by the municipality in a special tax increment 20
18941894 financing account and in its official books and records until all capital 21 BILL AS INTRODUCED S.102
18951895 2025 Page 78 of 94
18961896
18971897
18981898 VT LEG #380409 v.2
18991899 indebtedness of the district financed through education tax increment has been 1
19001900 fully paid. The final payment shall be reported to the treasurer, who shall 2
19011901 thereafter include the entire assessed valuation of the district in the assessed 3
19021902 valuations upon which municipal and other tax rates are computed and 4
19031903 extended and thereafter no taxes from the district shall be deposited in the 5
19041904 district’s tax increment financing account. 6
19051905 * * * 7
19061906 Sec. 44. 24 V.S.A. § 1898 is amended to read: 8
19071907 § 1898. POWERS SUPPLEMENTAL; CONSTRUCTION 9
19081908 * * * 10
19091909 (b) A municipality shall have power to issue from time to time general 11
19101910 obligation bonds, revenue bonds, or revenue bonds also backed by the 12
19111911 municipality’s full faith and credit in its discretion to finance the undertaking 13
19121912 of any improvements wholly or partly within such district. If revenue bonds 14
19131913 are issued, such bonds shall be made payable, as to both principal and interest, 15
19141914 solely from the income proceeds, revenues, tax increments, and funds of the 16
19151915 municipality derived from or held in connection with its undertaking and 17
19161916 carrying out of improvements under this chapter. 18
19171917 (c) Bonds issued under the provisions of this chapter are declared to be 19
19181918 issued for an essential public and governmental purpose. 20 BILL AS INTRODUCED S.102
19191919 2025 Page 79 of 94
19201920
19211921
19221922 VT LEG #380409 v.2
19231923 (d) Bonds issued under this section shall be authorized by resolution or 1
19241924 ordinance of the local governing body and may be payable upon demand or 2
19251925 mature at such time or times, bear interest at such rate or rates, be in such 3
19261926 denomination or denominations, be in registered form, carry such conversion 4
19271927 or registration privileges, have such rank or priority, be executed in such 5
19281928 manner, be payable in such medium or payment, at such place or places, and 6
19291929 be subject to such terms of redemption, such other characteristics, as may be 7
19301930 provided by such resolution or trust indenture or mortgage issued pursuant 8
19311931 thereto. 9
19321932 (e) [Repealed.] 10
19331933 (f) Such bonds may be sold at not less than par at public or private sales 11
19341934 held after notice published prior to such sale in a newspaper having a general 12
19351935 circulation in the municipality. If bonds are sold above par or a bond premium 13
19361936 is generated, the proceeds shall not be used for improvements until the 14
19371937 additional amount has been approved by the Vermont Economic Progress 15
19381938 Council by filing a substantial change request. 16
19391939 * * * 17
19401940 Sec. 45. 32 V.S.A. § 5404a is amended to read: 18
19411941 § 5404a. TAX STABILIZATION AGREEMENTS; TAX INCREMENT 19
19421942 FINANCING DISTRICTS 20
19431943 * * * 21 BILL AS INTRODUCED S.102
19441944 2025 Page 80 of 94
19451945
19461946
19471947 VT LEG #380409 v.2
19481948 (f) A municipality that establishes a tax increment financing district under 1
19491949 24 V.S.A. chapter 53, subchapter 5 shall collect all property taxes on properties 2
19501950 contained within the district and apply not more than 70 percent of the State 3
19511951 education property tax increment, and not less than 85 percent of the municipal 4
19521952 property tax increment, to repayment of financing of the improvements and 5
19531953 related costs for up to 20 years pursuant to 24 V.S.A. § 1894, if approved by 6
19541954 the Vermont Economic Progress Council pursuant to this section, subject to the 7
19551955 following: 8
19561956 (1) In a municipality with one or more approved districts, the Council 9
19571957 shall not approve an additional district until the municipality retires the debt 10
19581958 incurred for all of the districts in the municipality. [Repealed.] 11
19591959 (2) The Council shall not approve more than six districts in the State, 12
19601960 and not more than two per county, provided: 13
19611961 (A) The districts listed in 24 V.S.A. § 1892(d) shall not be counted 14
19621962 against the limits imposed in this subdivision (2). 15
19631963 (B) The Council shall consider complete applications in the order 16
19641964 they are submitted, except that if during any calendar month the Council 17
19651965 receives applications for more districts than are actually available in a county, 18
19661966 the Council shall evaluate each application and shall approve the application 19
19671967 that, in the Council’s discretion, best meets the economic development needs 20
19681968 of the county. [Repealed.] 21 BILL AS INTRODUCED S.102
19691969 2025 Page 81 of 94
19701970
19711971
19721972 VT LEG #380409 v.2
19731973 (3)(A) A municipality shall immediately notify the Council if it resolves 1
19741974 not to incur debt for an approved district within five years of approval or a 2
19751975 five-year extension period as required in 24 V.S.A. § 1894. 3
19761976 (B) Upon receiving notification pursuant to subdivision (A) of this 4
19771977 subdivision (3), the Council shall terminate the district and may approve a new 5
19781978 district, subject to the provisions of this section and 24 V.S.A. chapter 53, 6
19791979 subchapter 5. 7
19801980 * * * 8
19811981 (h) To approve utilization of incremental revenues pursuant to subsection 9
19821982 (f) of this section, the Vermont Economic Progress Council shall do all the 10
19831983 following: 11
19841984 * * * 12
19851985 (3) Location criteria. Determine that each application meets at least two 13
19861986 of the following three four criteria: 14
19871987 (A) The development is: 15
19881988 (i) compact; 16
19891989 (ii) high density; or 17
19901990 (iii) located in or near existing industrial areas. 18
19911991 (B) The proposed district is within an approved growth center, 19
19921992 designated downtown, designated village center, new town center, or 20
19931993 neighborhood development area. 21 BILL AS INTRODUCED S.102
19941994 2025 Page 82 of 94
19951995
19961996
19971997 VT LEG #380409 v.2
19981998 (C) The development will occur in an area that is economically 1
19991999 distressed, which for the purposes of this subdivision means that the 2
20002000 municipality in which the area is located has at least one of the following: 3
20012001 (i) a median family income that is not more than 80 percent of the 4
20022002 statewide median family income as reported by the Vermont Department of 5
20032003 Taxes for the most recent year for which data are available; 6
20042004 (ii) an annual average unemployment rate that is at least one 7
20052005 percent greater than the latest annual average statewide unemployment rate as 8
20062006 reported by the Vermont Department of Labor; or 9
20072007 (iii) a median sales price for residential properties under six acres 10
20082008 that is not more than 80 percent of the statewide median sales price for 11
20092009 residential properties under six acres as reported by the Vermont Department 12
20102010 of Taxes. 13
20112011 (D) The development will occur in an area wholly or partially exempt 14
20122012 from Act 250 jurisdiction codified in 10 V.S.A. § 6081. 15
20132013 (4) Project criteria. Determine that the proposed development within a 16
20142014 tax increment financing district will accomplish at least three of the following 17
20152015 five six criteria: 18
20162016 (A) The development within the tax increment financing district 19
20172017 clearly requires substantial public investment over and above the normal 20
20182018 municipal operating or bonded debt expenditures. 21 BILL AS INTRODUCED S.102
20192019 2025 Page 83 of 94
20202020
20212021
20222022 VT LEG #380409 v.2
20232023 (B) The development includes new or rehabilitated affordable 1
20242024 housing, as defined in 24 V.S.A. § 4303. 2
20252025 (C) The project will affect the remediation and redevelopment of a 3
20262026 brownfield located within the district. As used in this section, “brownfield” 4
20272027 means an area in which a hazardous substance, pollutant, or contaminant is or 5
20282028 may be present, and that situation is likely to complicate the expansion, 6
20292029 development, redevelopment, or reuse of the property. 7
20302030 (D) The development will include at least one entirely new business 8
20312031 or business operation or expansion of an existing business within the district, 9
20322032 and this business will provide new, quality, full-time jobs that meet or exceed 10
20332033 the prevailing wage for the region as reported by the Department of Labor. 11
20342034 (E) The development will enhance transportation by creating 12
20352035 improved traffic patterns and flow or creating or improving public 13
20362036 transportation systems. 14
20372037 (F) The project will mitigate flood risks within a flood-prone area or 15
20382038 will relocate development previously destroyed by flooding from a flood-prone 16
20392039 area to another area within the municipality where flood risks are significantly 17
20402040 lower. As used in this section, “flood-prone area” means an area in which 18
20412041 significant residential or commercial property lies within the floodplain. 19
20422042 * * * 20 BILL AS INTRODUCED S.102
20432043 2025 Page 84 of 94
20442044
20452045
20462046 VT LEG #380409 v.2
20472047 (l) The State Auditor of Accounts shall conduct performance audits of all 1
20482048 tax increment financing districts. The cost of conducting each audit shall be 2
20492049 considered a “related cost” as defined in 24 V.S.A. § 1891(6) and shall be 3
20502050 billed back to the municipality pursuant to subsection 168(b) of this title borne 4
20512051 by the State Auditor of Accounts and shall be included in the State Auditor of 5
20522052 Accounts’ annual budget request. Audits conducted pursuant to this subsection 6
20532053 shall include a review of a municipality’s adherence to relevant statutes and 7
20542054 rules adopted by the Vermont Economic Progress Council pursuant to 8
20552055 subsection (j) of this section, an assessment of record keeping related to 9
20562056 revenues and expenditures, and a validation of the portion of the tax increment 10
20572057 retained by the municipality and used for debt repayment and the portion 11
20582058 directed to the Education Fund. 12
20592059 * * * 13
20602060 * * * Tax Value Freeze * * * 14
20612061 Sec. 46. 32 V.S.A. § 3870 is amended to read: 15
20622062 § 3870. DEFINITIONS 16
20632063 As used in this subchapter: 17
20642064 * * * 18
20652065 (7)(A) “Qualifying property” means a parcel with a structure that is: 19
20662066 * * * 20 BILL AS INTRODUCED S.102
20672067 2025 Page 85 of 94
20682068
20692069
20702070 VT LEG #380409 v.2
20712071 (iii) undergoing, has undergone, or will undergo qualifying 1
20722072 improvements; and 2
20732073 (iv) in compliance with all relevant permitting requirements; and 3
20742074 (v) located in an area that was declared a federal disaster between 4
20752075 July 1, 2023 and October 15, 2023 that was eligible for Individual Assistance 5
20762076 from the Federal Emergency Management Agency or located in Addison or 6
20772077 Franklin County. 7
20782078 * * * 8
20792079 Sec. 47. 32 V.S.A. § 3871 is amended to read: 9
20802080 § 3871. EXEMPTION 10
20812081 * * * 11
20822082 (d) Exemption period. 12
20832083 * * * 13
20842084 (2) An exemption under this subchapter shall remain in effect for three 14
20852085 five years, provided the property continues to comply with the requirements of 15
20862086 this subchapter. When the exemption period ends, the property shall be taxed 16
20872087 at its most recently appraised grand list value. 17
20882088 * * * 18
20892089 * * * Vermont Infrastructure Sustainability Fund * * * 19
20902090 Sec. 48. 24 V.S.A. chapter 119, subchapter 6 is amended to read: 20
20912091 Subchapter 6. Special Funds 21 BILL AS INTRODUCED S.102
20922092 2025 Page 86 of 94
20932093
20942094
20952095 VT LEG #380409 v.2
20962096 * * * 1
20972097 § 4686. VERMONT INFRASTRUCTURE SUSTAINABILITY FUND 2
20982098 (a) Creation. There is created the Vermont Infrastructure Sustainability 3
20992099 Fund within the Vermont Bond Bank. 4
21002100 (b) Purpose. The purpose of the Fund is to provide capital to extend and 5
21012101 increase capacity of water and sewer service and other public infrastructure in 6
21022102 municipalities where lack of extension or capacity is a barrier to housing 7
21032103 development. 8
21042104 (c) Administration. The Vermont Bond Bank may administer the Fund in 9
21052105 coordination with and support from other State agencies, government 10
21062106 component parts, and quasi-governmental agencies. 11
21072107 (d) Program parameters. 12
21082108 (1) The Vermont Bond Bank, in consultation with the Department of 13
21092109 Housing and Community Development, shall develop program guidelines to 14
21102110 effectively implement the Fund. 15
21112111 (2) The program shall provide low-interest loans or bonds to 16
21122112 municipalities to expand infrastructure capacity. Eligible activities include: 17
21132113 (A) preliminary engineering and planning; 18
21142114 (B) engineering design and bid specifications; 19
21152115 (C) construction for municipal waster and wastewater systems; 20 BILL AS INTRODUCED S.102
21162116 2025 Page 87 of 94
21172117
21182118
21192119 VT LEG #380409 v.2
21202120 (D) transportation investments, including those required by municipal 1
21212121 regulation, the municipality’s official map, designation requirements, or other 2
21222122 planning or engineering identifying complete streets and transportation and 3
21232123 transit related improvements, including improvements to existing streets; and 4
21242124 (E) other eligible activities as determined by the guidelines produced 5
21252125 by the Vermont Bond Bank in consultation with the Department of Housing 6
21262126 and Community Development. 7
21272127 (e) Application Requirements. Eligible project applications shall 8
21282128 demonstrate: 9
21292129 (1) the project will create reserve capacity necessary for new housing 10
21302130 unit development; 11
21312131 (2) the project has a direct link to housing unit production; and 12
21322132 (3) the municipality has a commitment to own and operate the project 13
21332133 throughout its useful life. 14
21342134 (f) Application Criteria. In addition to any criteria developed in the 15
21352135 program guidelines, project applications shall be evaluated using the following 16
21362136 criteria: 17
21372137 (1) whether there is a direct connection to proposed or in-progress 18
21382138 housing development with demonstrable progress toward regional housing 19
21392139 targets; 20 BILL AS INTRODUCED S.102
21402140 2025 Page 88 of 94
21412141
21422142
21432143 VT LEG #380409 v.2
21442144 (2) whether the project is an expansion of an existing system and the 1
21452145 proximity to a designated area; 2
21462146 (3) the project readiness and estimated time until the need for financing; 3
21472147 (4) the ranking of the community on the Vermont Department of 4
21482148 Finance and Management, Vermont Community Index; and 5
21492149 (5) the demonstration of financing for project completion or completion 6
21502150 of a project component. 7
21512151 (g) Award terms. The Vermont Bond Bank, in consultation with the 8
21522152 Department of Housing and Community Development, shall establish award 9
21532153 terms that may include: 10
21542154 (1) the maximum loan or bond amount; 11
21552155 (2) the maximum term of the loan or bond amount; 12
21562156 (3) the time by which amortization shall commence; 13
21572157 (4) the maximum interest rate; 14
21582158 (5) whether the loan is eligible for forgiveness and to what percentage or 15
21592159 amount; 16
21602160 (6) the necessary security for the loan or bond; and 17
21612161 (7) any additional covenants encumbering the improved properties to 18
21622162 further secure the loan or bond. 19 BILL AS INTRODUCED S.102
21632163 2025 Page 89 of 94
21642164
21652165
21662166 VT LEG #380409 v.2
21672167 (h) Revolving fund. Any funds repaid or returned from the Infrastructure 1
21682168 Sustainability Fund shall be deposited into the Fund and used to continue the 2
21692169 program established in this section. 3
21702170 * * * Tax Department Housing Data Access * * * 4
21712171 Sec. 49. 32 V.S.A. § 5404 is amended to read: 5
21722172 § 5404. DETERMINATION OF EDUCATION PROPERTY TAX GRAND 6
21732173 LIST 7
21742174 * * * 8
21752175 (b) Annually, on or before August 15, the clerk of a municipality, or the 9
21762176 supervisor of an unorganized town or gore, shall transmit to the Director in an 10
21772177 electronic or other format as prescribed by the Director: education and 11
21782178 municipal grand list data, including exemption information and grand list 12
21792179 abstracts; tax rates; an extract of the assessor database also referred to as a 13
21802180 Computer Assisted Mass Appraisal (CAMA) system or Computer Assisted 14
21812181 Mass Appraisal database; and the total amount of taxes assessed in the town or 15
21822182 unorganized town or gore. The data transmitted shall identify each parcel by a 16
21832183 parcel identification number assigned under a numbering system prescribed by 17
21842184 the Director. Municipalities may continue to use existing numbering systems 18
21852185 in addition to, but not in substitution for, the parcel identification system 19
21862186 prescribed by the Director. If changes or additions to the grand list are made 20 BILL AS INTRODUCED S.102
21872187 2025 Page 90 of 94
21882188
21892189
21902190 VT LEG #380409 v.2
21912191 by the listers or other officials authorized to do so after such abstract has been 1
21922192 so transmitted, such clerks shall forthwith certify the same to the Director. 2
21932193 * * * 3
21942194 * * * Vermont Community Development Program Environmental Review * * 4
21952195 * 5
21962196 Sec. 50. 10 V.S.A. chapter 29, subchapter 1 is amended to read: 6
21972197 Subchapter 1. Community Development Act 7
21982198 * * * 8
21992199 § 690b. ENVIRONMENTAL REVIEW SERVICES 9
22002200 (a) All agencies, departments, and component parts of the State, federal 10
22012201 entities, and nonstate entities such as nonprofit and privately held companies 11
22022202 that receive services from the Vermont Department of Housing and 12
22032203 Community Development for projects funded in whole or in part by the federal 13
22042204 Department of Housing and Urban Development or other federal funding 14
22052205 requiring environmental review pursuant to 24 C.F.R. Part 58 (environmental 15
22062206 review procedures for entities assuming HUD environmental responsibilities) 16
22072207 may be charged for environmental review services through an assessment 17
22082208 payable to the Department of Housing and Community Development on a 18
22092209 basis established by the Commissioner of the Department of Housing and 19
22102210 Community Development and with the approval of the Secretary of 20
22112211 Administration. 21 BILL AS INTRODUCED S.102
22122212 2025 Page 91 of 94
22132213
22142214
22152215 VT LEG #380409 v.2
22162216 (b) The Department of Housing and Community Development may render 1
22172217 these services solely in its discretion. The Department shall not charge for 2
22182218 environmental review associated with HUD funding the Department issues 3
22192219 directly, such as Community Development Block Grant (CDBG) funding. 4
22202220 (c) The Department may utilize these funds for administrative costs 5
22212221 associated with providing environmental review services and other 6
22222222 administrative costs of the Vermont Community Development Program. 7
22232223 * * * Appropriations * * * 8
22242224 Sec. 51. DEPARTMENT OF HOUSING AND COMMUNITY 9
22252225 DEVELOPMENT; POSITIONS; APPROPRIATI ON 10
22262226 Three full-time, classified positions are created in the Department of 11
22272227 Housing and Community Development. The sum of $450,000.00 is 12
22282228 appropriated from the General Fund to the Department in fiscal year 2026 for 13
22292229 the purposes of funding these positions. 14
22302230 Sec. 52. APPROPRIATIONS 15
22312231 (a) The following shall be appropriated to the Department of Housing and 16
22322232 Community Development: 17
22332233 (1) The sum of $300,000.00 is appropriated from the General Fund in 18
22342234 fiscal year 2026 for the purposes of funding two existing limited-service 19
22352235 positions for fiscal years 2026 and 2027. One limited-service position shall 20
22362236 provide technical assistance to municipalities, nonprofit organizations, and 21 BILL AS INTRODUCED S.102
22372237 2025 Page 92 of 94
22382238
22392239
22402240 VT LEG #380409 v.2
22412241 private developers to aid in the development of infill and missing middle-1
22422242 income housing through the Homes for All initiative. One limited-service 2
22432243 position shall coordinate funding to distribution amongst State entities and 3
22442244 gather and analyze housing data to ensure efficient use of funds. 4
22452245 (2) The sum of $4,000,000.00 is appropriated from the General Fund in 5
22462246 fiscal year 2026 for the purposes of providing funding to the Vermont Rental 6
22472247 Housing Improvement Program Revolving Fund established in 10 V.S.A. 7
22482248 § 699. 8
22492249 (3) The sum of $2,000,000.00 is appropriated from the General Fund in 9
22502250 fiscal year 2026 for the purposes of providing funding for the Manufactured 10
22512251 Home Improvement and Repair Program established in 10 V.S.A. § 700. 11
22522252 (b) The sum of $2,000,000.00 is appropriated from the General Fund to the 12
22532253 Department of Economic Development in fiscal year 2026 for brownfield 13
22542254 redevelopment. The Department of Economic Development shall use the 14
22552255 funds for the assessment, remediation, and redevelopment of brownfield sites 15
22562256 to be used in the same manner as the Brownfields Revitalization Fund 16
22572257 established in 10 V.S.A. § 6654, except, notwithstanding the grant limitations 17
22582258 in 10 V.S.A. § 6654, projects supported by these funds shall not be limited to a 18
22592259 maximum amount per site. The Department of Economic Development may 19
22602260 award up to the amount of $1,000,000.00 in fiscal year 2026 to regional 20
22612261 planning commissions for the purposes of brownfield assessment. In awarding 21 BILL AS INTRODUCED S.102
22622262 2025 Page 93 of 94
22632263
22642264
22652265 VT LEG #380409 v.2
22662266 funds under this subsection, the Secretary of the Agency of Commerce and 1
22672267 Community Development, in consultation with the Vermont Association of 2
22682268 Planning and Development Agencies, shall select one regional planning 3
22692269 commission to administer these funds. To ensure statewide availability, the 4
22702270 selected regional planning commission shall subgrant to regional planning 5
22712271 commissions with brownfield programs, with not more than 10 percent of the 6
22722272 funds being used for administrative purposes. 7
22732273 (c) The sum of $50,000.00 is appropriated from the General Fund to the 8
22742274 Agency of Natural Resources, Department of Environmental Conservation in 9
22752275 fiscal year 2026 to develop a water and sewer database and to administer the 10
22762276 amendments made to 3 V.S.A. chapter 51. 11
22772277 (d) The sum of $39,100,000.00 is appropriated from the General Fund to 12
22782278 the Department of Housing and Community Development in fiscal year 2026 13
22792279 for the following purposes: 14
22802280 (1) $15,000,000.00 granted to the Vermont Housing Finance Agency to 15
22812281 continue implementation of the Middle-Income Homeownership Development 16
22822282 Program; 17
22832283 (2) $15,000,000.00 granted to the Vermont Housing Finance Agency to 18
22842284 continue implementation of the Rental Housing Revolving Loan Fund; and 19
22852285 (3) $9,100,000.00 granted to the Vermont Bond Bank to implement the 20
22862286 Vermont Infrastructure Sustainability Fund. 21 BILL AS INTRODUCED S.102
22872287 2025 Page 94 of 94
22882288
22892289
22902290 VT LEG #380409 v.2
22912291 * * * Effective Date * * * 1
22922292 Sec. 53. EFFECTIVE DATE 2
22932293 This act shall take effect on July 1, 2025. 3