BILLASINTRODUCEDANDPASSEDBYSENATE S.127
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S.127
IntroducedbyCommitteeonEconomicDevelopment,HousingandGeneral
Affairs
Date:March18,2025
Subject:Housing;housingprograms;conservationanddevelopment;landuse;
municipalzoning;VermontBondBank;taxationandfinance;tax
credits
Statementofpurposeofbillasintroduced:Thisbillproposestomake
multiplechangesrelatedtohousingprograms.Specifically,thebillproposes
tomakeamendmentstotheVermontRentalHousingImprovementProgram
andcreatetheManufacturedHomeImprovementandRepairProgram,create
theVermontInfrastructureSustainabilityFund,allowfortaxcreditsforthe
First-GenerationHomebuyerandDownPaymentAssistanceProgram,make
changestotheBrownfieldPropertyCleanupProgram,createastudy
committeerelatedtodisabilityhousing,andrequiremultiplehousing-related
reports.ThisbilladditionallyproposestocreatetheCommunityHousing
InfrastructureProgram,administeredbytheVermontEconomicProgress
Council,toauthorizemunicipalitiestousetaxincrementfinancingtopayfor
infrastructurethatwillstimulatethedevelopmentofhousing.
Anactrelatingtohousingandhousingdevelopment
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ItisherebyenactedbytheGeneralAssemblyoftheStateofVermont:
***VermontRentalHousingImprovementProgram***
Sec.1.10V.S.A.§ 699isamendedtoread:
§699.VERMONTRENTALHOUSINGIMPROVEMENT PROGRAM
(a)CreationofProgram.
***
(5)(A)TheDepartmentmaycooperatewithandsubgrantfundstoState
agenciesandgovernmentalsubdivisionsandpublicandprivateorganizations
inordertocarryoutthepurposesofthissubsection(a).
(B)Solelywithregardstoactionsundertakenpursuanttothis
subdivision(5),entities,includinggrantees,subgrantees,andcontractorsofthe
State,shallbeexemptfromtheprovisionsof8V.S.A.chapter73(licensed
lenders,mortgagebrokers,mortgageloanoriginators,salesfinancecompanies,
andloansolicitationcompanies).
***
(d)Programrequirementsapplicabletograntsandforgivableloans.
(1)(A)Agrantorloanshallnotexceed:
(i)$70,000.00perunit,forrehabilitationorcreationofaneligible
rentalhousingunitmeetingtheapplicablebuildingaccessibilityrequirements
undertheVermontAccessRules;or
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(ii)$50,000.00perunit,forrehabilitationorcreationofanyother
eligiblerentalhousingunit.Uptoanadditional$20,000.00perunitmaybe
madeavailableforspecificelementsthatcollectivelybringtheunittothe
visitablestandardoutlinedintherulesadoptedbytheVermontAccessBoard.
***
(e)Programrequirementsapplicabletograntsandfive-yearforgivable
loans.Foragrantorfive-yearforgivableloanawardedthroughtheProgram,
thefollowingrequirementsapplyforaminimumperiodoffiveyears:
(1)Alandlordshallcoordinatewithnonprofithousingpartnersand
localcoordinatedentryhomelessnessserviceorganizationsapprovedbythe
Departmenttoidentifypotentialtenants.
(2)(A)Exceptasprovidedinsubdivision(2)(B)ofthissubsection
subdivision(e)(2),alandlordshallleasetheunittoahouseholdthatis:
(i)exitinghomelessness,includinganyindividualunder25years
ofagewhosecureshousingthroughamasterleaseheldbyayouthservice
provideronbehalfofindividualsunder25yearsofage;
(ii)activelyworkingwithanimmigrantorrefugeeresettlement
program;or
(iii)composedofatleastoneindividualwithadisabilitywho
receivesoriseligibleapprovedtoreceiveMedicaid-fundedhomeand
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communitybasedhome-andcommunity-basedservicesorSocialSecurity
DisabilityInsurance;
(iv)displacedduetoactivityrelatedtoclimatechangeorduetoa
naturaldisaster;or
(v)withapprovalfromtheDepartmentinwriting,anorganization
thatwillholdamasterleasethatexplicitlystatestheunitwillbeusedin
serviceofthepopulationsdescribedinthissubsection(e).
***
(4)(A)Alandlordmayconvertagranttoaforgivableloanupon
approvaloftheDepartmentandthehousingorganizationthatapprovedthe
grant.
(B)Alandlordwhoconvertsagranttoaforgivableloanshallreceive
a10-percentproratedcreditforloanforgivenessforeachyearinwhichthe
landlordparticipatesintheProgram.
(f)Requirementsapplicableto10-yearforgivableloans.Fora10-year
forgivableloanawardedthroughtheProgram,thefollowingrequirements
applyforaminimumperiodof10years:
(1)Alandlordshallcoordinatewithnonprofithousingpartnersand
localcoordinatedentryorganizationstoidentifypotentialtenantsThetotal
costofrentfortheunit,includingutilitiesnotcoveredbyrentpayments,shall
notexceedtheapplicablefairmarketrentestablishedbytheDepartmentof
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HousingandUrbanDevelopment,exceptthatalandlordmayacceptahousing
voucherthatexceedsfairmarketrent,ifavailable.
(2)(A)Exceptasprovidedinsubdivision(2)(B)ofthissubsection(f),a
landlordshallleasetheunittoahouseholdthatis:
(i)exitinghomelessness,includinganyindividualunder25years
ofagewhosecureshousingthroughamasterleaseheldbyayouthservice
provideronbehalfofindividualsunder25yearsofage;
(ii)activelyworkingwithanimmigrantorrefugeeresettlement
program;or
(iii)composedofatleastoneindividualwithadisabilitywhois
eligibletoreceiveMedicaid-fundedhomeandcommunitybasedservices.
(B)If,uponpetitionofthelandlord,theDepartmentorthehousing
organizationthatissuedthegrantdeterminesthatahouseholdunder
subdivision(2)(A)ofthissubsection(f)isnotavailabletoleasetheunit,then
thelandlordshallleasetheunit:
(i)toahouseholdwithanincomeequaltoorlessthan80percent
ofareamedianincome;or
(ii)ifsuchahouseholdisunavailable,toanotherhouseholdwith
theapprovaloftheDepartmentorhousingorganization.
(3)(A)Alandlordshallacceptanyhousingvouchersthatareavailable
topayall,oraportionof,thetenant’srentandutilities.
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(B)IfnohousingvoucherorfederalorStatesubsidyisavailable,the
costofrentfortheunit,includingutilitiesnotcoveredbyrentpayments,shall
notexceedtheapplicablefairmarketrentestablishedbytheDepartmentof
HousingandUrbanDevelopment.
(4)TheDepartmentshallforgive10percentoftheaproratedamountof
aforgivableloanforeachyearalandlordparticipatesintheloanprogram.
***
(i)CreationoftheVermontRentalHousingImprovementProgram
RevolvingFund.FundsrepaidorreturnedtotheDepartmentfromforgivable
loansorgrantsfundedbytheProgramshallreturntotheVermontRental
HousingImprovementRevolvingFundtobeusedforProgramexpenditures
andadministrativecostsatthediscretionoftheDepartment.
***MHIR***
Sec.2.10V.S.A.§ 700isaddedtoread:
§ 700.VERMONTMANUFACTURED HOMEIMPROVEMENT AND
REPAIRPROGRAM
(a)ThereiscreatedwithintheDepartmentofHousingandCommunity
DevelopmenttheManufacturedHomeImprovementandRepairProgram.The
DepartmentshalldesignandimplementtheProgramtoawardfundingto
statewideorregionalnonprofithousingorganizations,orboth,toprovide
financialassistanceorawardstomanufacturedhomeownersandmanufactured
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homeparkownerstoimproveexistinghomes,incentivizenewslabplacement
forprospectivehomeowners,andincentivizeparkimprovementsforinfillof
morehomes.
(b)ThefollowingprojectsareeligibleforfundingthroughtheProgram:
(1)TheDepartmentmayawardupto$20,000.00toownersof
manufacturedhousingcommunitiestocompletesmall-scalecapitalneedsto
helpinfillvacantlotswithhomes,includingdisposalofabandonedhomes,lot
gradingandpreparation,thesitingandupgradingofelectricalboxes,
enhancingE-911safetyissues,transportinghomesoutoffloodzones,and
improvingindividualsepticsystems.Costsawardedunderthissubdivision
mayalsocoverlegalfeesandmarketingtohelpmakeiteasierfor
homeseekerstofindvacantlotsaroundtheState.
(2)TheDepartmentmayawardfundingtomanufacturedhomeowners
forwhichthehomeistheirprimaryresidencetoaddresshabitabilityand
accessibilityissuestobringthehomeintocompliancewithsafeliving
conditions.
(3)TheDepartmentmayawardupto$15,000.00pergranttoa
homeownertopayforafoundationorfederalDepartmentofHousingand
UrbanDevelopment-approvedslab,sitepreparation,skirting,tie-downs,and
utilityconnectionsonvacantlotswithinamanufacturedhomecommunity.
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(c)TheDepartmentmayadoptrules,policies,andguidelinestoaidin
enactingtheProgram.
***VermontInfrastructureSustainabilityFund***
Sec.3.24V.S.A.chapter119,subchapter6isamendedtoread:
Subchapter6.SpecialFunds
***
§ 4686.VERMONTINFRASTRUCTURE SUSTAINABILITYFUND
(a)Creation.ThereiscreatedtheVermontInfrastructureSustainability
FundwithintheVermontBondBank.
(b)Purpose.ThepurposeoftheFundistoprovidecapitaltoextendand
increasecapacityofwaterandsewerserviceandotherpublicinfrastructurein
municipalitieswherelackofextensionorcapacityisabarriertohousing
development.
(c)Administration.TheVermontBondBankmayadministertheFundin
coordinationwithandsupportfromotherStateagencies,government
componentparts,andquasi-governmentalagencies.
(d)Programparameters.
(1)TheVermontBondBank,inconsultationwiththeDepartmentof
HousingandCommunityDevelopment,shalldevelopprogramguidelinesto
effectivelyimplementtheFund.
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(2)Theprogramshallprovidelow-interestloansorbondsto
municipalitiestoexpandinfrastructurecapacity.Eligibleactivitiesinclude:
(A)preliminaryengineeringandplanning;
(B)engineeringdesignandbidspecifications;
(C)constructionformunicipalwasteandwastewatersystems;
(D)transportationinvestments,includingthoserequiredby
municipalregulation,themunicipality’sofficialmap,designation
requirements,orotherplanningorengineeringidentifyingcompletestreets
andtransportationandtransitrelatedimprovements,includingimprovements
toexistingstreets;and
(E)othereligibleactivitiesasdeterminedbytheguidelinesproduced
bytheVermontBondBankinconsultationwiththeDepartmentofHousing
andCommunityDevelopment.
(e)Applicationrequirements.Eligibleprojectapplicationsshall
demonstrate:
(1)theprojectwillcreatereservecapacitynecessaryfornewhousing
unitdevelopment;
(2)theprojecthasadirectlinktohousingunitproduction;and
(3)themunicipalityhasacommitmenttoownandoperatetheproject
throughoutitsusefullife.
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(f)Applicationcriteria.Inadditiontoanycriteriadevelopedinthe
programguidelines,projectapplicationsshallbeevaluatedusingthefollowing
criteria:
(1)whetherthereisadirectconnectiontoproposedorin-progress
housingdevelopmentwithdemonstrableprogresstowardregionalhousing
targets;
(2)whethertheprojectisanexpansionofanexistingsystemandthe
proximitytoadesignatedarea;
(3)theprojectreadinessandestimatedtimeuntiltheneedforfinancing;
(4)therankingofthecommunityontheVermontDepartmentof
FinanceandManagement,VermontCommunityIndex;and
(5)thedemonstrationoffinancingforprojectcompletionorcompletion
ofaprojectcomponent.
(g)Awardterms.TheVermontBondBank,inconsultationwiththe
DepartmentofHousingandCommunityDevelopment,shallestablishaward
termsthatmayinclude:
(1)themaximumloanorbondamount;
(2)themaximumtermoftheloanorbondamount;
(3)thetimebywhichamortizationshallcommence;
(4)themaximuminterestrate;
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(5)whethertheloaniseligibleforforgivenessandtowhatpercentage
oramount;
(6)thenecessarysecurityfortheloanorbond;and
(7)anyadditionalcovenantsencumberingtheimprovedpropertiesto
furthersecuretheloanorbond.
(h)Revolvingfund.AnyfundsrepaidorreturnedfromtheInfrastructure
SustainabilityFundshallbedepositedintotheFundandusedtocontinuethe
programestablishedinthissection.
***VHFAFirst-GenerationHomebuyerProgramandDownPayment
AssistanceProgram***
Sec.4.32V.S.A.§ 5930uisamendedtoread:
§5930u.TAXCREDITFORAFFORDABLEHOUSING
(a)Definitions.Asusedinthissection:
***
(11)“First-generationhomebuyer”meansahomebuyerwhoself-attests
thatthehomebuyerisanindividual:
(A)whoseparentsorlegalguardians:
(i)donothaveandduringthehomebuyer’slifetimehavenothad
anyresidentialownershipinterestinanystate;or
(ii)lostownershipofahomeduetoforeclosure,shortsale,or
deed-in-lieuofforeclosureandhavenotownedahomesincethatloss;or
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(B)whohasatanytimebeenplacedinfostercare.
***
(g)Creditallocation.
(1)Inanyfiscalyear,theallocatingagencymayawardupto:
(A)$400,000.00intotalfirst-yearcreditallocationstoallapplicants
forrentalhousingprojects,foranaggregatelimitof$2,000,000.00overany
givenfive-yearperiodthatcreditsareavailableunderthissubdivision(A).
(B)$675,000.00intotalfirst-yearcreditallocationsforloansor
grantsforowner-occupiedunitfinancingordownpaymentloansasprovided
insubdivision(b)(2)ofthissectionconsistentwiththeallocationplan,
includingfornewconstructionandmanufacturedhousing,foranaggregate
limitof$3,375,000.00overanygivenfive-yearperiodthatcreditsare
availableunderthissubdivision(B).Ofthetotalfirst-yearcreditallocations
madeunderthissubdivision(B),$250,000.00shallbeusedeachfiscalyearfor
manufacturedhomepurchaseandreplacement.
(C)$250,000.00intotalfirst-yearcreditallocationsforgrantsto
first-timehomebuyerswhoarealsofirst-generationhomebuyersasprovidedin
subdivision(b)(3)(D)ofthissection,foranaggregatelimitof$1,250,000.00
overanygivenfive-yearperiodthatcreditsareavailableunderthissubdivision
(C).
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(2)Ifthefullamountoffirst-yearcreditsauthorizedbyanawardarenot
allocatedtoataxpayer,theAgencymayreclaimtheamountnotallocatedand
re-awardsuchallocationstootherapplicants,andsuchre-awardsshallnotbe
subjecttothelimitssetforthinsubdivision(1)ofthissubsection.
(h)Creditallocation;DownPaymentAssistanceProgram.
(1)Infiscalyear2016throughfiscalyear2019,theallocatingagency
mayawardupto$125,000.00intotalfirst-yearcreditallocationsforloans
throughtheDownPaymentAssistanceProgramcreatedinsubdivision(b)(2)
ofthissection.
(2)Infiscalyear2020throughfiscalyear2026,theallocatingagency
mayawardupto$250,000.00intotalfirst-yearcreditallocationsforloans
throughtheDownPaymentAssistanceProgramcreatedinsubdivision(b)(3)
ofthissection.
(3)Infiscalyear2027throughfiscalyear2031,theallocatingagency
mayawardupto$250,000.00intotalfirst-yearcreditallocationsforloans
throughtheDownPaymentAssistanceProgramcreatedinsubdivision(b)(3)
ofthissection.
Sec.4.[Deleted.]
***VHFARentalHousingRevolvingLoanProgram***
Sec.4.2023ActsandResolvesNo.47,Sec.38isamendedtoread:
Sec.38.RENTALHOUSINGREVOLVINGLOANPROGRAM
(a)Creation;administration.TheVermontHousingFinanceAgencyshall
designandimplementaRentalHousingRevolvingLoanProgramandshall
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createandadministerarevolvingloanfundtoprovidesubsidizedloansfor
rentalhousingdevelopmentsthatservemiddle-incomehouseholds.
(b)Loans;eligibility;criteria.
***
(7)TheAgencyshalluseoneormorelegalmechanismstoensurethat:
(A)asubsidizedunitremainsaffordabletoahouseholdearningthe
applicablepercentofareamedianincomeforthelongerof:
(i)sevenyears;or
(ii)fullrepaymentoftheloanplusthreeyears;and
(B)duringtheaffordabilityperioddeterminedpursuantto
subdivision(A)ofthissubdivision(7),theannualincreaseinrentfora
subsidizedunitdoesnotexceedthreepercentoranamountotherwise
authorizedbytheAgency.
***
***HousingandResidentialServicesPlanningCommittee***
Sec.5.STATEHOUSINGANDRESIDENTIALSERVICESPLANNING
COMMITTEE;REPORT
(a)Creation.ThereiscreatedtheStateHousingandResidentialServices
PlanningCommitteetogenerateaStateplantodevelophousingfor
individualswithdevelopmentaldisabilities.
(b)Membership.TheCommitteeshallbecomposedofthefollowing
members:
(1)onecurrentmemberoftheHouseofRepresentatives,whoshallbe
appointedbytheSpeakeroftheHouse;
(2)onecurrentmemberoftheSenate,whoshallbeappointedbythe
CommitteeonCommittees;
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(3)theSecretaryoftheAgencyofHumanServicesordesignee;
(4)theCommissioneroftheDepartmentofDisabilities,Aging,and
IndependentLivingordesignee;
(5)theCommissioneroftheDepartmentofHousingandCommunity
Developmentordesignee;
(6)theStateTreasurerordesignee;
(7)onemember,appointedbytheDevelopmentalDisabilitiesHousing
Initiative;
(8)theExecutiveDirectoroftheVermontDevelopmentalDisabilities
Council;
(9)onemember,appointedbyGreenMountainSelf-Advocates;
(10)onemember,appointedbyVermontCarePartners;and
(11)onemember,appointedbytheVermontHousingandConservation
Board.
(c)Powersandduties.TheCommitteeshallcreateanactionableplanto
develophousingforindividualswithdevelopmentaldisabilitiesthatreflects
thediversityofneedsexpressedbythoseindividualsandtheirfamilies,
includingindividualswithhigh-supportneedswhorequire24-hourcareand
thosewithspecificcommunicationneeds.Theplanshallinclude:
(1)ascheduleforthecreationofatleast600additionalunitsofservice-
supportedhousing;
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(2)thenumberanddescriptionofthesupportneedsofindividualswith
developmentaldisabilitiesanticipatedtobeservedannually;
(3)anticipatedfundingneeds;and
(4)recommendationsforchangesinStatelawsorpoliciesthatare
obstaclestothedevelopmentofhousingneededbyindividualswithMedicaid-
fundedhome-andcommunity-basedservices.
(d)Assistance.Forpurposesofschedulingmeetingsandpreparing
recommendedlegislation,theCommitteeshallhavetheassistanceofthe
OfficeofLegislativeOperationsandtheOfficeofLegislativeCounsel.
(e)Report.OnorbeforeNovember15,2025,theCommitteeshallsubmit
awrittenreporttotheHouseCommitteesonGeneralandHousingandon
HumanServicesandtheSenateCommitteesonEconomicDevelopment,
HousingandGeneralAffairsandonHealthandWelfarewithitsfindingsand
anyrecommendationsforlegislativeaction.
(f)Meetings.
(1)TheSecretaryofHumanServicesshallcallthefirstmeetingofthe
CommitteetooccuronorbeforeJuly15,2025.
(2)TheCommitteeshallselectachairfromamongitsmembersatthe
firstmeeting.
(3)Amajorityofthemembershipshallconstituteaquorum.
(4)TheCommitteeshallceasetoexistonNovember30,2025.
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(g)Compensationandreimbursement.Forattendanceatmeetingsduring
adjournmentoftheGeneralAssembly,alegislativememberoftheCommittee
servinginthemember’scapacityasalegislatorshallbeentitledtoperdiem
compensationandreimbursementofexpensespursuantto2 V.S.A.§ 23for
notmorethanfivemeetings.Thesepaymentsshallbemadefrommonies
appropriatedtotheGeneralAssembly.
***HousingandPublicAccommodationProtections***
Sec.6.9V.S.A.§ 4501isamendedtoread:
§4501.DEFINITIONS
Asusedinthischapter:
***
(12)(A)“Harass”meanstoengageinunwelcomeconductthatdetracts
from,undermines,orinterfereswithaperson’s:
(i)useofaplaceofpublicaccommodationoranyofthe
accommodations,advantages,facilities,orprivilegesofaplaceofpublic
accommodationbecauseoftheperson’srace,creed,color,nationalorigin,
citizenship,maritalstatus,sex,sexualorientation,genderidentity,ordisability;
or
(ii)terms,conditions,privileges,orprotectionsinthesaleor
rentalofadwellingorotherrealestate,orintheprovisionofservicesor
facilitiesinconnectionwithadwellingorotherrealestate,becauseofthe
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person’srace,sex,sexualorientation,genderidentity,age,maritalstatus,
religiouscreed,color,nationalorigin,citizenship,ordisability,orbecausethe
personintendstooccupyadwellingwithoneormoreminorchildren,or
becausethepersonisarecipientofpublicassistance,orbecausethepersonisa
victimofabuse,sexualassault,orstalking.
***
Sec.7.9V.S.A.§ 4502isamendedtoread:
§4502.PUBLICACCOMMODATIONS
(a)Anowneroroperatorofaplaceofpublicaccommodationoranagent
oremployeeofsuchowneroroperatorshallnot,becauseoftherace,creed,
color,nationalorigin,citizenship,immigrationstatus,maritalstatus,sex,
sexualorientation,orgenderidentityofanyperson,refuse,withholdfrom,or
denytothatpersonanyoftheaccommodations,advantages,facilities,and
privilegesoftheplaceofpublicaccommodation.
***
Sec.8.9V.S.A.§ 4503isamendedtoread:
§4503.UNFAIRHOUSINGPRACTICES
(a)Itshallbeunlawfulforanyperson:
(1)Torefusetosellorrent,orrefusetonegotiateforthesaleorrental
of,orotherwisemakeunavailableordeny,adwellingorotherrealestateto
anypersonbecauseoftherace,sex,sexualorientation,genderidentity,age,
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maritalstatus,religiouscreed,color,nationalorigin,citizenship,ordisability
ofaperson,orbecauseapersonintendstooccupyadwellingwithoneormore
minorchildren,orbecauseapersonisarecipientofpublicassistance,or
becauseapersonisavictimofabuse,sexualassault,orstalking.
(2)Todiscriminateagainst,ortoharass,anypersonintheterms,
conditions,privileges,andprotectionsofthesaleorrentalofadwellingor
otherrealestate,orintheprovisionofservicesorfacilitiesinconnectionwith
adwellingorotherrealestate,becauseoftherace,sex,sexualorientation,
genderidentity,age,maritalstatus,religiouscreed,color,nationalorigin,
citizenship,ordisabilityofaperson,orbecauseapersonintendstooccupya
dwellingwithoneormoreminorchildren,orbecauseapersonisarecipientof
publicassistance,orbecauseapersonisavictimofabuse,sexualassault,or
stalking.
(3)Tomake,print,orpublish,orcausetobemade,printed,or
publishedanynotice,statement,oradvertisement,withrespecttothesaleor
rentalofadwellingorotherrealestatethatindicatesanypreference,
limitation,ordiscriminationbasedonrace,sex,sexualorientation,gender
identity,age,maritalstatus,religiouscreed,color,nationalorigin,citizenship,
ordisabilityofaperson,orbecauseapersonintendstooccupyadwellingwith
oneormoreminorchildren,orbecauseapersonisarecipientofpublic
assistance,orbecauseapersonisavictimofabuse,sexualassault,orstalking.
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(4)Torepresenttoanypersonbecauseoftherace,sex,sexual
orientation,genderidentity,age,maritalstatus,religiouscreed,color,national
origin,citizenship,ordisabilityofaperson,orbecauseapersonintendsto
occupyadwellingwithoneormoreminorchildren,orbecauseapersonisa
recipientofpublicassistance,orbecauseapersonisavictimofabuse,sexual
assault,orstalking,thatanydwellingorotherrealestateisnotavailablefor
inspection,sale,orrentalwhenthedwellingorrealestateisinfactso
available.
***
(6)Todiscriminateagainstanypersoninthemakingorpurchasingof
loansorprovidingotherfinancialassistanceforreal-estate-relatedtransactions
orintheselling,brokering,orappraisingofresidentialrealproperty,because
oftherace,sex,sexualorientation,genderidentity,age,maritalstatus,
religiouscreed,color,nationalorigin,citizenship,ordisabilityofaperson,or
becauseapersonintendstooccupyadwellingwithoneormoreminor
children,orbecauseapersonisarecipientofpublicassistance,orbecausea
personisavictimofabuse,sexualassault,orstalking.
(7)Toengageinblockbustingpractices,forprofit,whichmayinclude
inducingorattemptingtoinduceapersontosellorrentadwellingby
representationsregardingtheentryintotheneighborhoodofapersonor
personsofaparticularrace,sex,sexualorientation,genderidentity,age,
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maritalstatus,religiouscreed,color,nationalorigin,citizenship,ordisability
ofaperson,orbecauseapersonintendstooccupyadwellingwithoneormore
minorchildren,orbecauseapersonisarecipientofpublicassistance,or
becauseapersonisavictimofabuse,sexualassault,orstalking.
(8)Todenyanypersonaccesstoormembershiporparticipationinany
multiplelistingservice,realestatebrokers’organization,orotherservice,
organization,orfacilityrelatingtothebusinessofsellingorrentingdwellings,
ortodiscriminateagainstanypersoninthetermsorconditionsofsuchaccess,
membership,orparticipation,onaccountofrace,sex,sexualorientation,
genderidentity,age,maritalstatus,religiouscreed,color,nationalorigin,
citizenship,ordisabilityofaperson,orbecauseapersonisarecipientof
publicassistance,orbecauseapersonisavictimofabuse,sexualassault,or
stalking.
***
(12)Todiscriminateinlandusedecisionsorinthepermittingof
housingbecauseofrace,sex,sexualorientation,genderidentity,age,marital
status,religiouscreed,color,nationalorigin,citizenship,disability,the
presenceofoneormoreminorchildren,income,orbecauseofthereceiptof
publicassistance,orbecauseapersonisavictimofabuse,sexualassault,or
stalking,exceptasotherwiseprovidedbylaw.
***
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(d)Ifrequiredbyfederallaw,theverificationofimmigrationstatusshall
notconstituteaviolationofsubsection(a)ofthissectionwithrespecttothe
saleandrentalofdwellings.
***LURBAppealsStudy***
Sec.9.2024ActsandResolvesNo.181,Sec.11aisamendedtoread:
Sec.11a.ACT250APPEALSSTUDY
(a)OnorbeforeJanuary15,2026November15,2025,theLandUse
ReviewBoardshallissueareportevaluatingwhethertotransferappealsof
permitdecisionsandjurisdictionalopinionsissuedpursuantto10V.S.A.
chapter151totheLandUseReviewBoardorwhethertheyshouldremainat
theEnvironmentalDivisionoftheSuperiorCourt.TheBoardshallconvenea
stakeholdergroupthatataminimumshallbecomposedofarepresentativeof
environmentalinterests,attorneysthatpracticeenvironmentaland
developmentlawinVermont,theVermontLeagueofCitiesandTowns,the
VermontAssociationofPlanningandDevelopmentAgencies,theVermont
ChamberofCommerce,theLandAccessandOpportunityBoard,theOfficeof
RacialEquity,theVermontAssociationofRealtors,arepresentativeofnon-
profithousingdevelopmentinterests,arepresentativeoffor-profithousing
developmentinterests,arepresentativeofcommercialdevelopmentinterests,
anengineerwithexperienceindevelopment,theAgencyofCommerceand
CommunityDevelopment,andtheAgencyofNaturalResourcesinpreparing
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thereport.TheBoardshallprovidenoticeofthestakeholdermeetingsonits
websiteandeachmeetingshallprovidetimeforpubliccomment.
(b)Thereportshallatminimumrecommend:
(1)whetherWhethertoallowconsolidationofappealsattheBoard,or
withtheEnvironmentalDivisionoftheSuperiorCourt,andhow,including
whatresourcestheBoardwouldneed,iftransferredtotheBoard,appealsof
permitdecisionsissuedunder24V.S.A.chapter117andtheAgencyof
NaturalResourcescanbeconsolidatedwithAct250appeals;.
(2)howHowtoprioritizeandexpeditetheadjudicationofappeals
relatedtohousingprojects,includingtheuseofhearingofficerstoexpedite
appealsandthesettingoftimelinesforprocessingofhousingappeals;.
(3)proceduralProceduralrulestogoverntheBoard’sadministrationof
Act250andtheadjudicationofappealsofAct250decisions.Theserules
shallincludeprocedurestocreateafirewallandeliminateanypotentialfor
conflictswiththeBoardmanagingappealsandissuingpermitdecisionsand
jurisdictionalopinions;and.
(4)otherOtheractionstheBoardshouldtaketopromotetheefficient
andeffectiveadjudicationofappeals,includinganyproceduralimprovements
totheAct250permittingprocessandjurisdictionalopinionappeals.
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(c)ThereportshallbesubmittedtotheSenateCommitteesonEconomic
Development,HousingandGeneralAffairsandonNaturalResourcesand
EnergyandtheHouseCommitteeonEnvironmentandEnergy.
***Brownfields***
Sec.10.10V.S.A.§6604cisamendedtoread:
§6604c.MANAGEMENT OFDEVELOPMENT SOILS
(a)Managementofdevelopmentsoils.Notwithstandinganyother
requirementsofthischaptertothecontrary,developmentsoilsmaybe
managedatalocationpermittedpursuanttoaninsignificantwasteevent
approvalauthorizationissuedpursuanttotheSolidWasteManagementRules
thatcontains,ataminimum,thefollowing:
(1)thedevelopmentsoilsaregeneratedfromahazardousmaterialssite
managedpursuanttoacorrectiveactionplanorasoilmanagementplan
approvedbytheSecretary;
(2)thedevelopmentsoilshavebeentestedforarsenic,lead,and
polyaromatichydrocarbonspursuanttoamonitoringplanapprovedbythe
Secretarythatensuresthatthesoilsdonotleachabovegroundwater
enforcementstandards;
(3)thelocationwherethesoilsaremanagedisappropriateforthe
amountandtypeofmaterialbeingmanaged;
(4)thesoilsarecappedinamannerapprovedbytheSecretary;
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(5)anyactivitythatmaydisturbthedevelopmentsoilsatthepermitted
locationshallbeconductedpursuanttoasoilmanagementplanapprovedby
theSecretary;and
(6)thepermitteefilesarecordnoticeofwherethesoilsaremanagedin
thelandrecords.
***
Sec.11.REPORTONTHESTATUSOFMANAGEMENT OF
DEVELOPMENT SOILS
(a)AspartofthebiennialreporttotheHouseCommitteeonEnvironment
andtheSenateCommitteeonNaturalResourcesandEnergyunder10V.S.A.
§ 6604(c),theSecretaryofNaturalResourcesshallreportonthestatusofthe
managementofdevelopmentsoilsintheStateunder10V.S.A.§ 6604c.The
reportshallinclude:
(1)thenumberofinsignificantwasteeventapprovalauthorizations
issuedbytheSecretaryintheprevioustwoyearsforthemanagementof
developmentsoils;
(2)thenumberofcertifiedcategoricalsolidwastefacilitiesoperatingin
theStateforthemanagementofdevelopmentsoils;
(3)asummaryofhowthemajorityofdevelopmentsoilsintheStateare
beingmanaged;
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(4)anestimateofthecosttomanagedevelopmentsoils,dependingon
managementmethod;and
(5)anyadditionalinformationtheSecretarydeterminesrelevanttothe
managementofdevelopmentsoilsintheState.
(b)Asusedinthissection,“developmentsoil”hasthesamemeaningasin
10V.S.A.§ 6602(39).
Sec.12.10V.S.A.§ 6641isamendedtoread:
§6641.BROWNFIELDPROPERTYCLEANUPPROGRAM;CREATION;
POWERS
(a)ThereiscreatedtheBrownfieldPropertyCleanupProgramtoenable
certaininterestedpartiestorequesttheassistanceoftheSecretarytoreview
andoverseeworkplansforinvestigating,abating,removing,remediating,and
monitoringapropertyinexchangeforprotectionfromcertainliabilitiesunder
section6615ofthistitle.TheProgramshallbeadministeredbytheSecretary
whoshall:
***
(c)Whenconductinganyreviewrequiredbythissubchapter,theSecretary
shallprioritizethereviewofremediationatasitethatcontainshousing.
Sec.13.BROWNFIELDSPROCESSIMPROVEMENT;REPORT
OnorbeforeNovember1,2025,theSecretaryofNaturalResourcesshall
reporttotheHouseCommitteesonEnvironmentandonGeneralandHousing
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andtheSenateCommitteesonEconomicDevelopment,HousingandGeneral
AffairsandonNaturalResourcesandEnergywithproposalstomakethe
Programestablishedpursuantto10V.S.A.chapter159,subchapter3
(brownfieldsreuseandliabilitylimitation)substantiallymoreefficient.Ata
minimum,thereportshallincludebothofthefollowing:
(1)Asurveyofstakeholdersinthebrownfieldsprogramtoidentify
areasthatpresentchallengestotheredevelopmentofcontaminatedproperties,
withafocusonredevelopmentforhousing.TheSecretaryshallprovide
recommendationstoresolvethesechallenges.
(2)Ananalysisofstrengthsandweaknessesofimplementingalicensed
siteprofessionalprogramwithintheState.TheSecretaryshallmakea
recommendationonwhethersuchaprogramshouldbeimplemented.Ifthe
Secretaryrecommendsimplementation,thereportshallincludeanychangesto
statuteorbudgetneededtoimplementthisprogram.
Sec.14.2023ActsandResolvesNo.78,Sec.B.1103,asamendedby2024
ActsandResolvesNo.87,Sec.43,isfurtheramendedtoread:
Sec.B.1103CLIMATEANDENVIRONMENT –FISCALYEAR2024
ONE-TIMEAPPROPRIATIONS
***
(h)Infiscalyear2024,theamountof$2,500,000GeneralFundis
appropriatedtotheDepartmentofEnvironmentalConservationEnvironmental
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ContingencyFundestablishedpursuantto10V.S.A.§1283forthe
BrownfieldsReuseandEnvironmentalLiabilityLimitationActascodifiedin
10V.S.A.chapter159.Fundsshallbeusedfortheassessmentandcleanup,
planning,andcleanupofbrownfieldssites.
***
Sec.15.BROWNFIELDFUNDING
Thesumof$4,000,000.00isappropriatedfromtheGeneralFundtothe
BrownfieldRevitalizationFundestablishedin10V.S.A.§ 6654.TheAgency
ofCommerceandCommunityDevelopmentshallawardtheamountof
$2,000,000.00infiscalyear2026toregionalplanningcommissionsforthe
purposesofbrownfieldsassessment.Inawardingfundsunderthissection,the
SecretaryofCommerceandCommunityDevelopment,inconsultationwith
theVermontAssociationofPlanningandDevelopmentAgencies,shallselect
oneregionalplanningcommissiontoadministerthesefunds.Toensure
statewideavailability,theselectedregionalplanningcommissionshall
subgranttoregionalplanningcommissionswithbrownfieldprograms,with
notmorethan10percentofthefundsbeingusedforadministrativepurposes.
Sec.15.[Deleted.]
***TaxIncrementFinancing***
Sec.16.24V.S.A.chapter53,subchapter7isaddedtoread:
Subchapter7.CommunityandHousingInfrastructureProgram
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§ 1906.DEFINITIONS
Asusedinthissubchapter:
(1)“Affordablehousing”meanseitherofthefollowing:
(A)Owner-occupiedhousingforwhichthetotalannualcostof
ownership,includingprincipal,interest,taxes,insurance,andcondominium
associationfees,doesnotexceed30percentofthegrossannualincomeofa
householdat150percentofthehighestofthefollowing:
(i)thecountymedianincome,asdefinedbytheU.S.Department
ofHousingandUrbanDevelopment;
(ii)thestandardmetropolitanstatisticalareamedianincomeifthe
municipalityislocatedinsuchanarea,asdefinedbytheU.S.Departmentof
HousingandUrbanDevelopment;or
(iii)thestatewidemedianincome,asdefinedbytheU.S.
DepartmentofHousingandUrbanDevelopment.
(B)Rentalhousingforwhichthetotalannualcostofrenting,
includingrent,utilities,andcondominiumassociationfees,doesnotexceed30
percentofthegrossannualincomeofahouseholdat150percentofthe
highestofthefollowing:
(i)thecountymedianincome,asdefinedbytheU.S.Department
ofHousingandUrbanDevelopment;
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(ii)thestandardmetropolitanstatisticalareamedianincomeifthe
municipalityislocatedinsuchanarea,asdefinedbytheU.S.Departmentof
HousingandUrbanDevelopment;or
(iii)thestatewidemedianincome,asdefinedbytheU.S.
DepartmentofHousingandUrbanDevelopment.
(21)“Brownfield”meansapropertyonwhichthepresenceorpotential
presenceofahazardousmaterial,pollutant,orcontaminantcomplicatesthe
expansion,development,redevelopment,orreuseoftheproperty.
(32)“Committed”meanspledgedandappropriatedforthepurposeof
thecurrentandfuturepaymentoffinancingandrelatedcosts.
(43)“Developer”meansthepersonundertakingtoconstructahousing
development.
(54)“Financing”meansdebt,includingprincipal,interest,andanyfees
orchargesdirectlyrelatedtothatdebt,incurredbyasponsor,orother
instrumentsorborrowingusedbyasponsor,topayforahousinginfrastructure
projectand,inthecaseofasponsorthatisamunicipality,authorizedbythe
municipalitypursuanttosection1910aofthissubchapter.
(65)“Housingdevelopment”meanstheconstructionofoneormore
buildingsthatincludesaffordablehousing.
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(76)“Housingdevelopmentsite”meanstheparcelorparcels
encompassingahousingdevelopmentasauthorizedbyamunicipalitypursuant
tosection1908ofthissubchapter.
(87)“Housinginfrastructureagreement”meansalegallybinding
agreementtofinanceanddevelopahousinginfrastructureprojectandto
constructahousingdevelopmentamongamunicipality,adeveloper,and,if
applicable,athird-partysponsor.
(98)“Housinginfrastructureproject”meansoneormoreimprovements
authorizedbyamunicipalitypursuanttosection1908ofthissubchapter.
(109)“Improvements”means:
(A)theinstallationorconstructionofinfrastructurethatwillservea
publicgoodandfulfillthepurposeofhousinginfrastructuretaxincrement
financingasstatedinsection1907ofthissubchapter,includingutilities,digital
infrastructure,transportation,publicrecreation,commercialandindustrial
facilities,parking,publicfacilitiesandamenities,landandpropertyacquisition
anddemolition,brownfieldremediation,sitepreparation,andflood
remediationandmitigation;and
(B)thefundingofdebtserviceinterestpaymentsforaperiodofup
tofouryears,beginningonthedateonwhichthedebtisfirstincurred.
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(1110)“Legislativebody”meansthemayorandalderboard,thecity
council,theselectboard,andthepresidentandtrusteesofanincorporated
village,asappropriate.
(1211)“Municipality”meansacity,town,orincorporatedvillage.
(1312)“Originaltaxablevalue”meansthetotalvaluationasdetermined
inaccordancewith32V.S.A.chapter129ofalltaxablerealpropertylocated
withinahousingdevelopmentsiteasofitscreationdate,providedthatno
parcelwithinthehousingdevelopmentsiteshallbedividedorbisected.
(1413)“Relatedcosts”meansexpensesincurredandpaidbya
municipality,exclusiveoftheactualcostofconstructingandfinancing
improvements,thataredirectlyrelatedtothecreationandimplementationof
themunicipality’shousinginfrastructureproject,includingreimbursementof
sumspreviouslyadvancedbythemunicipalityforthosepurposes.Related
costsmayincludedirectmunicipalexpensessuchasdepartmentalorpersonnel
costsrelatedtocreatingoradministeringthehousinginfrastructureprojectto
theextenttheyarepaidfromthetaxincrementrealizedfrommunicipaland
noteducationtaxesandusingonlythatportionofthemunicipalincrement
abovethepercentagerequiredforservingdebtasdeterminedinaccordance
withsubsection1910c(c)ofthissubchapter.
(1514)“Sponsor”meansthepersonundertakingtofinanceahousing
infrastructureproject.Anyofamunicipality,adeveloper,oranindependent
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agencythatmeetsStatelendingstandardsmayserveasasponsorforahousing
infrastructureproject.
§ 1907.PURPOSE
Thepurposeofhousinginfrastructuretaxincrementfinancingistoprovide
revenuesforimprovementsandrelatedcoststostimulatehousingdevelopment
inVermont.
§ 1907.PURPOSE
Thepurposeofhousinginfrastructuretaxincrementfinancingistoprovide
revenuesforimprovementsandrelatedcoststoencouragethedevelopmentof
primaryresidencesforhouseholdsoflowormoderateincome.
§ 1908.CREATIONOFHOUSINGINFRASTRUCTURE PROJECTAND
HOUSINGDEVELOPMENT SITE
(a)Thelegislativebodyofamunicipalitymaycreatewithinitsjurisdiction
ahousinginfrastructureproject,whichshallconsistofimprovementsthat
stimulatethedevelopmentofhousing,andahousingdevelopmentsite,which
shallconsistoftheparcelorparcelsonwhichahousingdevelopmentis
installedorconstructedandanyimmediatelycontiguousparcels.
(b)Tocreateahousinginfrastructureprojectandhousingdevelopment
site,amunicipality,incoordinationwithstakeholders,shall:
(1)developahousingdevelopmentplan,including:
(A)adescriptionoftheproposedhousinginfrastructureproject,the
proposedhousingdevelopment,andtheproposedhousingdevelopmentsite;
(B)identificationofasponsor;
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(C)ataxincrementfinancingplanmeetingthestandardsof
subsection1910(f)ofthissubchapter;
(D)aproformaprojectionofexpectedcostsoftheproposedhousing
infrastructureproject;
(E)aprojectionofthetaxincrementtobegeneratedbytheproposed
housingdevelopment;and
(F)adevelopmentschedulethatincludesalist,acostestimate,anda
schedulefortheproposedhousinginfrastructureprojectandtheproposed
housingdevelopment;
(2)developaplandescribingthehousingdevelopmentsitebyits
boundariesandthepropertiestherein,entitled“ProposedHousing
DevelopmentSite(municipalname),Vermont”;
(3)holdoneormorepublichearings,afterpublicnotice,onthe
proposedhousinginfrastructureproject,includingtheplansdeveloped
pursuanttothissubsection;and
(4)adoptbyactofthelegislativebodyofthemunicipalitytheplan
developedundersubdivision(2)ofthissubsection,whichshallberecorded
withthemunicipalclerkandlisterorassessor.
(c)Thecreationofahousingdevelopmentsiteshalloccurat12:01a.m.on
April1ofthecalendaryearinwhichtheVermontEconomicProgressCouncil
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approvestheuseoftaxincrementfinancingforthehousinginfrastructure
projectpursuanttosection1910ofthissubchapter.
§ 1909.HOUSINGINFRASTRUCTURE AGREEMENT
(a)Thehousinginfrastructureagreementforahousinginfrastructure
projectshall:
(1)clearlyidentifythesponsorforthehousinginfrastructureproject;
(2)clearlyidentifythedeveloperandthehousingdevelopmentforthe
housingdevelopmentsite;
(3)obligatethetaxincrementsretainedpursuanttosection1910cofthis
subchapterfornotmorethanthefinancingandrelatedcostsforthehousing
infrastructureproject;and
(4)provideforperformanceassurancestoreasonablysecurethe
obligationsofallpartiesunderthehousinginfrastructureagreement.
(b)Amunicipalityshallprovidenoticeofthetermsofthehousing
infrastructureagreementforthemunicipality’shousinginfrastructureproject
tothelegalvotersofthemunicipalityandshallprovidethesameinformation
assetforthinsubsection1910a(e)ofthissubchapter.
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§ 1910.HOUSINGINFRASTRUCTURE PROJECTAPPLICATION;
VERMONTECONOMICPROGRESSCOUNCIL
(a)Application.Amunicipality,uponapprovalofitslegislativebody,may
applytotheVermontEconomicProgressCounciltousetaxincrement
financingforahousinginfrastructureproject.
(b)Review.TheVermontEconomicProgressCouncilmayapproveonly
applicationsmeetingtheprocessrequirements,theprojectcriterion,andanyof
thelocationcriteriaofthissection.
(b)Review.TheVermontEconomicProgressCouncilmayapproveonly
applicationsthat:
(1)meettheprocessrequirements,theprojectcriterion,andanyofthe
locationcriteriaofthissection;and
(2)aresubmittedonorbeforeDecember31,2035.
(c)Processrequirements.TheVermontEconomicProgressCouncilshall
reviewamunicipality’shousinginfrastructureprojectapplicationtodetermine
whetherthemunicipalityhas:
(1)createdahousinginfrastructureprojectandhousingdevelopment
sitepursuanttosection1908ofthissubchapter;
(2)executedahousinginfrastructureagreementforthehousing
infrastructureprojectadheringtothestandardsofsection1909ofthis
subchapterwithadeveloperand,ifthemunicipalityisnotfinancingthe
housinginfrastructureprojectitself,asponsor;and
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(3)approvedorpledgedtouseincrementalmunicipaltaxrevenuesfor
thehousinginfrastructureprojectintheproportionprovidedformunicipaltax
revenuesinsection1910cofthissubchapter.
(d)Projectcriterion.TheVermontEconomicProgressCouncilshall
reviewamunicipality’shousinginfrastructureprojectapplicationtodetermine
whethertheprojectedhousingdevelopmentincludesaffordablehousing.
(e)Locationcriteria.TheVermontEconomicProgressCouncilshall
reviewamunicipality’shousinginfrastructureprojectapplicationtodetermine
whetherthehousingdevelopmentsiteislocatedwithinoneofthefollowing
areas:
(1)anareadesignatedTier1AorTier1Bpursuantto10V.S.A.chapter
151(Statelanduseanddevelopmentplans)oranareaexemptfromthe
provisionsofthatchapterpursuantto10V.S.A.§ 6081(dd)(interimhousing
exemptions);
(2)anareadesignatedTier2pursuantto10V.S.A.chapter151(State
landuseanddevelopmentplans)oranareainwhichthehousingdevelopment
siteiscompatiblewithregionalandtownlanduseplansasevidencedbya
letterofsupportfromtheregionalplanningcommissionforthemunicipality;
or
(3)anexistingsettlementoranareawithinone-halfmileofanexisting
settlement,asthattermisdefinedin10V.S.A.§ 6001(16).
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(f)Taxincrementfinancingplan.TheVermontEconomicProgress
Councilshallapproveamunicipality’staxincrementfinancingplanpriortoa
sponsor’sincurrenceofdebtforthehousinginfrastructureproject,including,
ifthesponsorisamunicipality,priortoapublicvotetopledgethecreditof
themunicipalityundersection1910aofthissubchapter.Thetaxincrement
financingplanshallinclude:
(1)astatementofcostsandsourcesofrevenue;
(2)estimatesofassessedvalueswithinthehousingdevelopmentsite;
(3)theportionofthoseassessedvaluestobeappliedtothehousing
infrastructureproject;
(4)theresultingtaxincrementsineachyearofthefinancialplan;
(5)theamountofbondedindebtednessorotherfinancingtobe
incurred;
(6)othersourcesoffinancingandanticipatedrevenues;and
(7)thedurationofthefinancialplan.
§ 1910a.INDEBTEDNESS
(a)Amunicipalityapprovedfortaxincrementfinancingundersection
1910ofthissubchaptermayincurindebtednessagainstrevenuesofthe
housingdevelopmentsiteatanytimeduringaperiodofuptofiveyears
followingthecreationofthehousingdevelopmentsite.TheVermont
EconomicProgressCouncilmayextendthisdebtincursionperiodbyupto
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threeyears.Ifnodebtisincurredforthehousinginfrastructureprojectduring
thedebtincursionperiod,whetherbythemunicipalityorsponsor,thehousing
developmentsiteshallterminate.
(b)Notwithstandinganyprovisionofanymunicipalcharter,eachinstance
ofborrowingbyamunicipalitytofinanceorotherwisepayforahousing
infrastructureprojectshalloccuronlyafterthelegalvotersofthemunicipality,
byamajorityvoteofallvoterspresentandvotingonthequestionataspecial
orannualmunicipalmeetingdulywarnedforthepurpose,authorizethe
legislativebodytopledgethecreditofthemunicipality,borrow,orotherwise
securethedebtforthespecificpurposessowarned.
(c)Anyindebtednessincurredunderthissectionmayberetiredoverany
periodauthorizedbythelegislativebodyofthemunicipality.
(d)Thehousingdevelopmentsiteshallcontinueuntilthedateandhourthe
indebtednessisretiredor,ifnodebtisincurred,fiveyearsfollowingthe
creationofthehousingdevelopmentsite.
(e)Amunicipallegislativebodyshallprovideinformationtothepublic
priortothepublicvoterequiredundersubsection(b)ofthissection.This
informationshallincludetheamountandtypesofdebtandrelatedcoststobe
incurred,includingprincipal,interest,andfees;termsofthedebt;thehousing
infrastructureprojecttobefinanced;thehousingdevelopmentprojectedto
occurbecauseofthehousinginfrastructureproject;andnoticetothevoters
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thatifthetaxincrementreceivedbythemunicipalityfromanypropertytax
sourceisinsufficienttopaytheprincipalandinterestonthedebtinanyyear,
themunicipalityshallremainliableforthefullpaymentoftheprincipaland
interestforthetermoftheindebtedness.Ifinterfundloanswithinthe
municipalityareused,theinformationmustalsoincludedocumentationofthe
termsandconditionsoftheloan.
(f)Ifinterfundloanswithinthemunicipalityareusedasthemethodof
financing,nointerestshallbecharged.
(g)Theuseofabondanticipationnoteshallnotbeconsideredafirst
incurrenceofdebtpursuanttosubsection(a)ofthissection.
§ 1910b.ORIGINALTAXABLEVALUE;TAXINCREMENT
(a)Asofthedatethehousingdevelopmentsiteiscreated,thelisteror
assessorforthemunicipalityshallcertifytheoriginaltaxablevalueandshall
certifytothelegislativebodyineachyearthereafterduringthelifeofthe
housingdevelopmentsitetheamountbywhichthetotalvaluationas
determinedinaccordancewith32V.S.A.chapter129ofalltaxablereal
propertywithinthehousingdevelopmentsitehasincreasedordecreased
relativetotheoriginaltaxablevalue.
(b)Annuallythroughoutthelifeofthehousingdevelopmentsite,thelister
orassessorshallincludenotmorethantheoriginaltaxablevalueofthereal
propertyintheassessedvaluationuponwhichthetreasurercomputestherates
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ofalltaxesleviedbythemunicipalityandeveryothertaxingdistrictinwhich
thehousingdevelopmentsiteissituated,butthetreasurershallextendallrates
sodeterminedagainsttheentireassessedvaluationofrealpropertyforthat
year.
(c)Annuallythroughoutthelifeofthehousingdevelopmentsite,a
municipalityshallremitnotlessthantheaggregateeducationpropertytaxdue
ontheoriginaltaxablevaluetotheEducationFund.
(d)Annuallythroughoutthelifeofthehousingdevelopmentsite,the
municipalityshallholdapart,ratherthanremittothetaxingdistricts,that
proportionofalltaxespaidthatyearontherealpropertywithinthehousing
developmentsitethattheexcessvaluationbearstothetotalassessedvaluation.
Theamountheldaparteachyearisthe“taxincrement”forthatyear.Thetax
incrementshallonlybeusedforfinancingandrelatedcosts.
(e)Notmorethanthepercentagesestablishedpursuanttosection1910cof
thissubchapterofthemunicipalandStateeducationtaxincrementsreceived
withrespecttothehousingdevelopmentsiteandcommittedforthepayment
forfinancingforimprovementsandrelatedcostsshallbesegregatedbythe
municipalityinaspecialtaxincrementfinancingaccountandinitsofficial
booksandrecordsuntilallcapitalindebtednessincurredforthehousing
infrastructureprojecthasbeenfullypaid.Thefinalpaymentshallbereported
tothetreasurer,whoshallthereafterincludetheentireassessedvaluationof
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thehousingdevelopmentsiteintheassessedvaluationsuponwhichthe
municipalandothertaxratesarecomputedandextended,andthereafterno
taxesfromthehousingdevelopmentsiteshallbedepositedinthespecialtax
incrementfinancingaccount.
(f)Notwithstandinganycharterprovisionorotherprovision,allproperty
taxesassessedwithinahousingdevelopmentsiteshallbesubjecttothe
provisionsofthissection.Specialassessmentsleviedunderchapter76Aor87
ofthistitleorunderamunicipalchartershallnotbeconsideredpropertytaxes
forthepurposeofthissectioniftheproceedsareusedexclusivelyfor
operatingexpensesrelatedtopropertieswithinthehousingdevelopmentsite
andnotforimprovementswithinthehousingdevelopmentsite.
§ 1910c.USEOFTAXINCREMENT;RETENTIONPERIOD
(a)Usesoftaxincrements.Amunicipalitymayapplytaxincrements
retainedpursuanttothissubchaptertodebtincurredwithintheperiod
permittedundersection1910aofthissubchapter,torelatedcosts,andtothe
directpaymentofthecostofahousinginfrastructureproject.Anydirect
paymentshallbesubjecttothesamepublicvoteprovisionsofsection1910a
ofthissubchapterasapplytodebt.
(b)Educationpropertytaxincrement.Upto80percentoftheeducation
propertytaxincrementmayberetainedforupto20years,beginningthefirst
yearinwhichdebtisincurredforthehousinginfrastructureproject.Upon
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incurringthefirstdebt,amunicipalityshallnotifytheDepartmentofTaxes
andtheVermontEconomicProgressCouncilofthebeginningoftheretention
periodoftheeducationpropertytaxincrement.
(c)Municipalpropertytaxincrement.Notlessthan100percentofthe
municipalpropertytaxincrementmayberetained,beginningthefirstyearin
whichdebtisincurredforthehousinginfrastructureproject.
(d)Excesstaxincrement.
(1)Ofthemunicipalandeducationpropertytaxincrementsreceivedin
anytaxyearthatexceedtheamountscommittedforthepaymentofthe
financingandrelatedcostsforahousinginfrastructureproject,equalportions
ofeachincrementmayberetainedforthefollowingpurposes:
(A)toprepayprincipalandinterestonthefinancing;
(B)toplaceinaspecialtaxincrementfinancingaccountrequired
pursuanttosubsection1910b(e)ofthissubchapteranduseforfuturefinancing
payments;or
(C)tousefordefeasanceofthefinancing.
(2)Anyremainingportionoftheexcesseducationpropertytax
incrementshallbedistributedtotheEducationFund.Anyremainingportion
oftheexcessmunicipalpropertytaxincrementshallbedistributedtothecity,
town,orvillagebudgetintheproportionthateachbudgetbearstothe
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combinedtotalofthebudgetsunlessotherwisenegotiatedbythecity,town,or
village.
§ 1910d.INFORMATIONREPORTING
(a)Amunicipalitywithanactivehousinginfrastructureprojectshall:
(1)developasystem,segregatedforthehousinginfrastructureproject,
toidentify,collect,andmaintainalldataandinformationnecessarytofulfill
thereportingrequirementsofthissection;
(2)providetimelynotificationtotheDepartmentofTaxesandthe
VermontEconomicProgressCouncilofanyhousinginfrastructureproject
debt,publicvote,orvotebythemunicipallegislativebodyimmediately
followingthedebtincurrenceorpublicvoteonaformprescribedbythe
Council,includingcopiesofpublicnotices,agendas,minutes,votetally,anda
copyoftheinformationprovidedtothepublicpursuanttosubsection1910a(e)
ofthissubchapter;and
(3)annuallyonorbeforeFebruary15,submitonaformprescribedby
theVermontEconomicProgressCouncilanannualreporttotheCounciland
theDepartmentofTaxes,includingtheinformationrequiredbysubdivision(2)
ofthissubsectionifnotpreviouslysubmitted,theinformationrequiredfor
annualauditundersection1910eofthissubchapter,andanyinformation
requiredbytheCouncilortheDepartmentofTaxesforthereportrequired
pursuanttosubsection(b)ofthissection.
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(b)AnnuallyonorbeforeApril1,theVermontEconomicProgress
CouncilandtheDepartmentofTaxesshallsubmitareporttotheSenate
CommitteesonEconomicDevelopment,HousingandGeneralAffairsandon
FinanceandtheHouseCommitteesonCommerceandEconomicDevelopment
andonWaysandMeansonhousinginfrastructureprojectsapprovedpursuant
tothissubchapter,includingforeachofthefollowing:
(1)thedateofapproval;
(2)adescriptionofthehousinginfrastructureproject;
(3)theoriginaltaxablevalueofthehousingdevelopmentsite;
(4)thescopeandvalueofprojectedandactualimprovementsand
developmentsinthehousingdevelopmentsite,includingthenumberof
housingunitscreated;
(5)thenumberandtypesofhousingunitsforwhichapermitisbeing
pursuedunder10V.S.A.chapter151(Statelanduseanddevelopmentplans)
and,foreachapplicablehousingdevelopment,thecurrentstageofthe
permittingprocess;
(56)projectedandactualincrementalrevenueamounts;
(67)theallocationofincrementalrevenue;and
(78)projectedandactualfinancing.
(c)OnorbeforeJanuary15,2035,theVermontEconomicProgress
CouncilshallsubmitareporttotheSenateCommitteesonEconomic
Development,HousingandGeneralAffairsandonFinanceandtheHouse
CommitteesonCommerceandEconomicDevelopmentandonWaysand
MeansevaluatingthesuccessoftheCommunityandHousingInfrastructure
Programinachievingitspurpose,asstatedinsection1907ofthischapter,
includingbyidentifyingtheamountandkindsofhousingproducedthroughthe
Programandbydeterminingwhetherhousingdevelopmentpursuedthrough
theProgrammeetstheprojectcriterionandlocationcriteriaofsection1910of
thischapter.
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§ 1910e.AUDITING
AnnuallyonorbeforeApril1untiltheyearfollowingtheendoftheperiod
forretentionofeducationpropertytaxincrement,amunicipalitywitha
housinginfrastructureprojectapprovedunderthissubchaptershallensurethat
thespecialtaxincrementfinancingaccountrequiredbysection1910bofthis
subchapterissubjecttotheannualauditprescribedinsection1681or1690of
thistitleandsubmitacopytotheVermontEconomicProgressCouncil.Ifan
accountissubjectonlytotheauditundersection1681ofthistitle,theCouncil
shallensureaprocessisinplacetosubjecttheaccounttoanindependent
audit.Proceduresfortheauditmustincludeverificationoftheoriginaltaxable
valueandannualandtotalmunicipalandeducationpropertytaxincrements
generated,expendituresforfinancingandrelatedcosts,andcurrentbalance.
§ 1910f.GUIDANCE
(a)TheSecretaryofCommerceandCommunityDevelopment,after
reasonablenoticetoamunicipalityandanopportunityforahearing,mayissue
decisionstoamunicipalityonquestionsandinquiriesconcerningthe
administrationofhousinginfrastructureprojects,statutes,rules,
noncompliancewiththissubchapter,andanyinstancesofnoncompliance
identifiedinauditreportsconductedpursuanttosection1910eofthis
subchapter.
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(b)TheVermontEconomicProgressCouncilshallprepare
recommendationsfortheSecretaryofCommerceandCommunity
Developmentpriortoanydecisionissuedpursuanttosubsection(a)ofthis
section.TheCouncilmaypreparerecommendationsinconsultationwiththe
CommissionerofTaxes,theAttorneyGeneral,andtheStateTreasurer.In
preparingrecommendations,theCouncilshallprovideamunicipalitywitha
reasonableopportunitytosubmitwritteninformationinsupportofitsposition.
(c)TheSecretaryofCommerceandCommunityDevelopmentshallreview
therecommendationsoftheCouncilandissueafinalwrittendecisiononeach
matterwithin60daysfollowingreceiptoftherecommendations.The
SecretarymaypermitanappealtobetakenbyanypartytoaSuperiorCourt
fordeterminationofquestionsoflawinthesamemannerastheSupreme
CourtmaybyruleprovideforappealsbeforefinaljudgmentfromaSuperior
Courtbeforeissuingafinaldecision.
(d)TheVermontEconomicProgressCouncilmayadoptrulesthatare
reasonablynecessarytoimplementthissubchapter.
Sec.17.32V.S.A.§ 3325isamendedtoread:
§ 3325.VERMONTECONOMICPROGRESSCOUNCIL
(a)Creation.TheVermontEconomicProgressCounciliscreatedto
exercisetheauthorityandperformthedutiesassignedtoit,includingits
authorityanddutiesrelatingto:
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(1)theVermontEmploymentGrowthIncentiveProgrampursuantto
subchapter2ofthischapter;and
(2)taxincrementfinancingdistrictspursuantto24V.S.A.chapter53,
subchapter5andsection5404aofthistitle;and
(3)housinginfrastructuretaxincrementfinancingpursuantto24V.S.A.
chapter53,subchapter7.
***
(g)Decisionsnotsubjecttoreview.AdecisionoftheCounciltoapprove
ordenyanapplicationundersubchapter2ofthischapter,ortoapproveor
denyataxincrementfinancingdistrictpursuantto24V.S.A.chapter53,
subchapter5andsection5404aofthistitle,ortoapproveordenyahousing
infrastructureprojectpursuantto24V.S.A.chapter53,subchapter7isan
administrativedecisionthatisnotsubjecttothecontestedcasehearing
requirementsunder3V.S.A.chapter25andisnotsubjecttojudicialreview.
***SmokeandCarbonMonoxideAlarms***
Sec.17a.9V.S.A.chapter77isamendedtoread:
CHAPTER77.SMOKEDETECTORSALARMSANDCARBONMONOXIDE
DETECTORSALARMS
§2881.DEFINITIONS
Asusedinthischapter:
***
(2)“Smokedetectoralarm”meansadevicethatdetectsvisibleor
invisibleparticlesofcombustionandsoundsawarningalarm,isoperated
fromapowersupplywithintheunitorwiredtoitfromanoutsidesource,and
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isapprovedorlistedforthepurposebyUnderwritersLaboratoryorby
anothernationallyrecognizedindependenttestinglaboratory.
(3)“Carbonmonoxidedetectoralarm”meansadevicewithan
assemblythatincorporatesasensorcontrolcomponentandanalarm
notificationthatdetectselevationsincarbonmonoxidelevelsandsoundsa
warningalarm,isoperatedfromapowersupplywithintheunitorwiredtoit
fromanoutsidesource,andisapprovedorlistedforthepurposeby
UnderwritersLaboratoryorbyanothernationallyrecognizedindependent
testinglaboratory.
§2882.INSTALLATION
(a)Apersonwhoconstructsasingle-familydwellingshallinstall
photoelectric-only-typephotoelectric-typeorUL217compliantsmoke
detectorsalarmsinthevicinityofanybedroomsandoneachlevelofthe
dwelling,andoneormorecarbonmonoxidedetectorsalarmsinthevicinityof
anybedroomsinthedwellinginaccordancewiththemanufacturer’s
instructions.Inadwellingprovidedwithelectricalpower,detectorsalarms
shallbepoweredbytheelectricalserviceinthebuildingandbybattery.
(b)Anysingle-familydwellingwhentransferredbysaleorexchangeshall
containphotoelectric-only-typephotoelectric-typeorUL217compliantsmoke
detectorsalarmsinthevicinityofanybedroomsandoneachlevelofthe
dwellinginstalledinaccordancewiththemanufacturer’sinstructionsandone
ormorecarbonmonoxidedetectorsalarmsinstalledinaccordancewiththe
manufacturer’sinstructions.Asingle-familydwellingconstructedbefore
January1,1994maycontainsmokedetectorsalarmspoweredbytheelectrical
serviceinthebuildingorbybattery,orbyacombinationofboth.Inasingle-
familydwellingnewlyconstructedafterJanuary1,1994thatisprovidedwith
electricalpower,smokedetectorsalarmsshallbepoweredbytheelectrical
serviceinthebuildingandbybattery.Inasingle-familydwellingnewly
constructedafterJuly1,2005thatisprovidedwithelectricalpower,carbon
monoxidedetectorsalarmsshallbepoweredbytheelectricalserviceinthe
buildingandbybattery.
(c)Nothinginthissectionshallrequireanowneroroccupantofasingle-
familydwellingtomaintainoruseasmokedetectoralarmoracarbon
monoxidedetectoralarmafterinstallation.
§2883.REQUIREMENTSFORTRANSFEROFDWELLING
(a)Thesellerofasingle-familydwelling,includingoneconstructedfor
firstoccupancy,whetherthetransferisbysaleorexchange,shallcertifytothe
buyerattheclosingofthetransactionthatthedwellingisprovidedwith
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detectorsalarmsandcarbonmonoxidedetectorsalarmsinaccordancewith
thischapter.Thiscertificationshallbesignedanddatedbytheseller.
(b)Ifthebuyernotifiesthesellerwithin10daysbycertifiedmailfromthe
dateofconveyanceofthedwellingthatthedwellinglacksanyphotoelectric-
only-typephotoelectric-typeorUL217compliantsmokedetectorsalarms,or
anycarbonmonoxidedetectorsalarms,orthatanydetectoralarmisnot
operable,thesellershallcomplywiththischapterwithin10daysafter
notification.
***
Sec.17b.20V.S.A.§ 2731isamendedtoread:
§2731.RULES;INSPECTIONS;VARIANCES
***
(j)DetectorsAlarms.Rulesadoptedunderthissectionshallrequirethat
informationwritten,approved,anddistributedbytheCommissioneronthe
type,placement,andinstallationofphotoelectricphotoelectric-typeorUL217
compliantsmokedetectorsalarmsandcarbonmonoxidedetectorsalarmsbe
conspicuouslypostedintheretailsalesareawherethedetectorsalarmsare
sold.
***
***Taxes***
Sec.18.32V.S.A.§ 5811(21)(C)isamendedtoread:
(C)decreasedbythefollowingexemptionsanddeductions:
***
(iv)anamountequaltotheitemizeddeductionformedical
expensestakenatthefederallevelbythetaxpayer,under26U.S.C.§213:
(I)minustheamountoftheVermontstandarddeductionand
Vermontpersonalexemptionstakenbythetaxpayerunderthissubdivision(C);
and
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(II)minusanyamountdeductedatthefederallevelthatis
attributabletothepaymentofanentrancefeeorrecurringmonthlypayment
madetoacontinuingcareretirementcommunityregulatedunder8V.S.A.
chapter151,whichexceedsthedeductibilitylimitsforpremiumspaidduring
thetaxableyearonqualifiedlong-termcareinsurancecontractsunder26
U.S.C.213(d)(10)(A).
Sec.19.32V.S.A.§ 3800isamendedtoread:
§ 3800.STATUTORYPURPOSES
***
(r)Thestatutorypurposeoftheexemptionundersection 3851ofthistitle
forcertainnewconstructionandimprovementsistoincentivizethose
activities.
Sec.20.32V.S.A.§ 3851isaddedtoread:
§ 3851.NEWACCESSORYDWELLINGUNITSANDCERTAIN
PROPERTYIMPROVEMENTS
(a)Anincreaseintheappraisalvalueofapropertyshallbeexemptedfrom
propertytaxationbyfixingandmaintainingthetaxablevalueattheproperty’s
grandlistvalueintheyearimmediatelyprecedingimprovementsinthe
followingcases:
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(1)thepropertyhasbeenrehabilitatedorimprovedusingagrantorloan
fromtheVermontHousingImprovementProgramandconstructionhasbeen
fullycompletedintheprevious12months;or
(2)thepropertyhasbeenimprovedthroughtheconstructionofanew
accessorydwellingunit,asdefinedby24V.S.A.§4303(38),andconstruction
hasbeenfullycompletedintheprevious12months.
(b)Adecreaseinappraisalvalueofapropertysubjecttothisexemption
duetodamageordestructionfromfireoractofnaturemayreducethe
property’staxablevaluebelowthefixedvalueundersubsection(a)ofthis
section.
(c)TheexemptionunderthissectionshallapplytotheStateeducation
propertytaximposedunderchapter135ofthistitleandtomunicipalproperty
tax.
(d)Anexemptionunderthissectionshallremainineffectforthreeyears.
Whentheexemptionperiodends,thepropertyshallbetaxedatitsmost
recentlyappraisedgrandlistvalue.
***Appropriations***
Sec.21.APPROPRIATIONS
ThefollowingshallbeappropriatedfromtheGeneralFundinfiscalyear
2026:
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(1)Thesumof$45,600,000.00totheDepartmentofHousingand
CommunityDevelopmentforthefollowingpurposes:
(A)$15,000,000.00grantedtotheVermontHousingFinanceAgency
tocontinueimplementationoftheMiddle-IncomeHomeownership
DevelopmentProgram;
(B)$15,000,000.00grantedtotheVermontHousingFinanceAgency
tocontinueimplementationoftheRentalHousingRevolvingLoanFund;
(C)$9,100,000.00grantedtotheVermontBondBanktoimplement
theVermontInfrastructureSustainabilityFund;
(D)$4,000,000.00fortherehabilitationofeligiblerentalhousing
unitsundertheRentalHousingImprovementProgramestablishedin10V.S.A.
§699;
(E)$2,000,000.00toimprovemobilehomeparkinfrastructureunder
theManufacturedHomeImprovementandRepairProgramestablishedin10
V.S.A.§700;and
(F)$500,000.00forgrantstobemadeforthepurposeofproviding
homebuyereducation,financialliteracycounseling,andforeclosureprevention
programsoperatedbythefiveNeighborWorksAmericaaffiliated
HomeOwnershipCenters.
(2)Thesumof$100,000.00totheStateTreasurertoimplementthe
PositiveRentalPaymentPilotProgram.
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***EffectiveDate***
Sec.2218.EFFECTIVEDATE
ThisactshalltakeeffectonJuly1,2025.
***EffectiveDates***
Sec.18.EFFECTIVEDATES
ThisactshalltakeeffectonJuly1,2025,exceptthatSec.4andthissection
shalltakeeffectonpassage.
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