An act relating to workforce housing

This bill proposes changes to Vermont's housing programs to increase funding and expand eligibility for rental housing improvements, primarily affecting private landlords and nonprofit housing organizations. It would amend existing programs to allow grants and forgivable loans for rehabilitating non-compliant units, building new accessory dwelling units, and creating new rental units, with a cap of $50,000 per unit and a requirement for landlords to contribute at least 20% in matching funds or services. The legislation also creates a new Middle-Income Rental Housing Revolving Loan Program to provide subsidized loans for rental developments serving middle-income households, while exempting smaller municipalities from certain zoning requirements and allowing towns to register with state agencies to issue wastewater permits without full state permits. Additionally, it would reduce the number of residents who can appeal zoning decisions from 10 to a lower threshold and exempt certain downtown housing projects from state environmental review requirements.