An act relating to the Vermont Homeless Emergency Assistance and Responsive Transition to Housing Program

The definition of 'household' was changed from 'who live in Vermont' to a domicile standard requiring 'an intent to dwell in Vermont and to return to Vermont if temporarily absent, coupled with an act or acts consistent with that intent.' This is a more restrictive eligibility threshold.

The definition of 'community action agency' was expanded to include not just agencies designated under 3 V.S.A. chapter 59, but also any entity or entities otherwise authorized by the Department to fulfill community action agency duties under the chapter.

The bill now has explicit phased effective dates: initial provisions effective July 1, 2025; full program (including core services and authorization process) effective July 1, 2026; and replacement of General Assistance emergency housing effective July 1, 2027.

A new implementation planning section requires the Department to submit a first written implementation plan by October 1, 2025 and a second by January 15, 2026, covering performance measures, eligibility guidance, funding allocations, appeals processes, and opt-out procedures for unwilling community action agencies.

The FY2027 purpose was expanded to replace both the General Assistance Program emergency housing AND the Housing Opportunity Grant Program (the House version only referenced General Assistance).

A new authorization and reauthorization process requires the Department to review each community action agency at least every three years, with corrective actions possible for non-compliance and potential denial of reauthorization.

New reporting requirement obligates the Department to identify State rules and local regulations or ordinances impeding timely development of safe, decent, affordable housing, and advise whether temporary suspension or amendment would facilitate faster housing construction.

A new Emergency Temporary Shelter Program is established within the Department for Children and Families, creating a statutory framework for temporary sheltering of eligible households with specific eligibility categories including age 60 or older, documented disability, short-term medical condition, child under 19, pregnancy, recent death of spouse, natural disaster, court-ordered eviction, and domestic violence.

The bill's title and structure change from a single VHEARTH program to a two-part bill: first establishing the Emergency Temporary Shelter Program (with its own advisory committee, eligibility rules, and sunset on July 1, 2029), then retaining the VHEARTH program content in subsequent sections.

Maximum shelter days per 12-month period are tied to the statewide rental vacancy rate: 90 days if vacancy is below 5 percent at application, or 45 days if vacancy is 5 percent or higher. No ineligibility periods may be imposed on a household's remaining days.

A winter shelter provision requires the Department to provide shelter between November 15 and April 15 to households lacking a fixed, regular, adequate nighttime residence. Winter shelter stays do not count toward the maximum days of eligibility limit.

Monthly public reporting is required on the Department's website, including household counts by size and eligibility category, alternative housing placements, bed availability by district, demographic information for weather-related shelter use, and quarterly expenditure totals.

Hotel and motel operators must comply with the public accommodation act, hold a valid lodging license from the Department of Health, and follow the Licensed Lodging Establishment Rule and Fire and Building Safety Code. The Department may withhold full or partial payment for violations.

The General Assistance Emergency Housing Program ceases to exist on July 1, 2026, with all related rules becoming ineffective on that date. The new Emergency Temporary Shelter Program takes effect the same day, with an emergency rule filed before then and a permanent rule due by February 15, 2026.

The Legislative Intent section is rewritten to focus specifically on the Emergency Temporary Shelter Program's goals: eliminating unsheltered homelessness, eliminating arbitrary time limits and night-by-night shelter, using noncongregate housing to the greatest extent possible, incorporating Housing First principles and trauma-informed practices, and increasing accessible interim shelter for individuals with disabilities.

The Department must propose hotel and motel rates annually through the budget process for General Assembly approval. The Department may enter into contractual agreements with hotel or motel operators to secure capacity, provided no household is made unhoused as a result.

Program renamed from 'Emergency Temporary Shelter Program' to 'Vermont Homeless Emergency Assistance and Responsive Transition to Housing Program' (VHEARTH), signaling a broader scope beyond just temporary shelter.

Day-to-day program operations shifted from the Department for Children and Families directly to community action agencies, with a statewide organization specifically serving domestic and sexual violence survivors. The Department retains oversight, funding allocation, and rulemaking authority.

The program now explicitly replaces both the General Assistance Program's emergency housing AND the Housing Opportunity Grant Program. The introduced version only referenced replacing the General Assistance program.

The legislative intent shifts from 'unsheltered homelessness be eliminated' to the broader goal that 'homelessness in Vermont be rare, brief, and nonrecurring,' while also requiring safe shelter options for unsheltered individuals specifically.

All specific eligibility categories removed (age 60+, disability, medical condition, child under 19, pregnancy, recent death of spouse, natural disaster, eviction, domestic violence). The passed version instead uses broad definitions of 'homeless' and 'at-risk of homelessness,' making the program available to all households experiencing or at risk of homelessness without categorical restrictions.

Maximum shelter day limits eliminated. The introduced version capped stays at 90 days (if vacancy rate under 5%) or 45 days (if 5% or higher) per 12-month period. No such caps appear in the passed version.

New sections establish specific supportive services (10 types including intake assessments, individualized plans, peer support, landlord-tenant outreach, advocacy), extreme weather event shelters, and separate temporary and transitional shelter categories with different operational requirements.

New regional planning requirement (Section 2211) mandates that community action agencies develop regional needs assessments addressing progress in reducing homelessness, return-to-homelessness rates, system gaps, funding needs with inflationary adjustments, and data utilization including Point-in-Time Count results.

New Section 5 requires the Department to submit a detailed implementation plan by February 1, 2026, addressing funding allocations among community action agencies, identification of additional state and federal funds, accountability measures, and 8 other operational questions including whether households should have financial participation requirements.

The introduced version's winter shelter section (November 15 to April 15) is replaced with a broader 'extreme weather event' concept that includes heat events, hurricanes, flooding, and blizzards, with the Department adopting guidance on when shelters activate based on regional conditions.

The Advisory Committee is restructured with specific membership composition: 5 people with lived experience appointed by homeless alliances, 5 from community action agencies, representatives from housing coalitions (at least 2 shelter providers), and two Department officials. It gains authority to form subcommittees and has a sunset date of July 1, 2029.

New definitions added for 'at-risk of homelessness,' 'community action agency,' 'extreme weather event,' 'homeless,' and 'unsheltered homelessness.' The definition of 'household' now includes the requirement that members 'intend to stay in Vermont.'