H 844 (Vermont) modifies sales tax rules for fuel used in residential properties. It removes the sales tax exemption for fuel purchases when a property was used as a short-term rental or occupied by the owner for fewer than 183 days in the past year. Instead, owners of such properties must pay a new 3% surcharge on residential fuel sales. Revenue from this surcharge will fund the Home Weatherization Assistance Fund, which helps low-income households improve energy efficiency. The bill takes effect August 1, 2026.
S.267 modifies Vermont's land use laws to streamline housing development. It repeals a rule requiring permits for road construction under certain conditions (e.g., roads over 800 feet long), while extending exemptions for housing projects until 2030. Specifically, it exempts accessory dwelling units (like in-law apartments) in single-family homes and small housing projects (75 units or fewer) in designated downtown, neighborhood, or growth areas with adequate infrastructure - until July 1, 2030. These changes primarily affect developers, homeowners, and municipalities by reducing permitting barriers for housing in targeted zones. The bill does not alter zoning requirements but simplifies processes for projects meeting specific criteria.
This bill requires large real estate companies (defined as entities owning 10+ single- or two-family homes with $30 million+ in assets) to wait 90 days after a home is listed for public sale before purchasing it. It also eliminates tax deductions for depreciation and interest on these properties for institutional investors. The law applies to commercial real estate firms but excludes nonprofits, community land trusts, and government-funded housing. These changes aim to slow rapid buying by large investors in residential markets.
S.294 creates Vermont's Whole Home Repairs Program within the Department of Housing and Community Development to provide funding for homeowners and private landlords. The program offers competitive grants and forgivable loans (capped at $50,000 per unit) to address habitability issues (like mold or lead), improve energy/water efficiency, or make homes accessible for people with disabilities. Landlords must contribute 20% in matching funds, cannot displace current tenants during repairs, and are prohibited from using renovated units as short-term rentals during the grant period. All grant details, including recipient names and amounts, will be publicly reported quarterly on the department’s website. This directly affects Vermont residents needing home repairs, particularly low-income households and landlords maintaining rental properties.
H.732 establishes two new income tax brackets for higher earners in Vermont. Individuals would pay an additional 1% tax on income between $200,000-$400,000 and above $400,000, while married couples filing jointly would pay the extra rate on income between $400,000-$800,000 and above $800,000. The revenue generated would fund an expanded property tax credit specifically for Vermont households with annual income below $115,000. This directly affects high-income taxpayers through new tax rates and low-to-moderate-income households via increased credit support.
S.325 creates a task force to develop model zoning bylaws for "residential opportunity overlay districts" in Vermont. The task force (with 9 members including housing experts, local government reps, and legislators) will draft clear, objective zoning codes allowing more housing development with simplified approval - requiring only a "certificate of compliance" from a zoning administrator, not municipal hearings or reviews. Municipalities could choose to adopt these model codes to meet state housing targets, with state grants and oversight available. The task force must submit its recommendations to the legislature by December 1, 2026. This bill directly affects Vermont towns and cities seeking to streamline housing development under state housing goals.
This bill repeals a rule requiring permits for road construction over certain lengths (800+ feet per road or 2,000+ feet total), simplifying development for clustered housing projects. It extends until 2030 exemptions for priority housing projects in designated downtowns, growth centers, or neighborhood areas with existing infrastructure. The bill also allows accessory dwelling units in single-family homes and small conversions of commercial buildings to housing (up to 29 units) without permits until 2030. These changes directly affect developers, homeowners, and municipalities by reducing regulatory barriers for housing construction in targeted areas.
H.775 creates Vermont's Rural Housing Finance Pilot Program to support affordable housing in rural areas. It allows municipalities with populations under 5,000 to apply for tax stabilization on new housing developments, freezing property values for the first seven years after construction and gradually increasing them over the next three years (25% to 75% of market changes). Projects must include at least 15% affordable units (minimum two units) with 15-year affordability covenants, and limit residential units to 16 per development. The bill also establishes a Vermont Housing Special Fund to manage interest from credit facility loans used for bulk purchasing of off-site housing and mobile home park infrastructure.
This bill requires Vermont's Department of Housing and Community Development to provide free, online resources to help the public establish collective homeownership models. It mandates the department to create and share practical materials - including guides for organization and conflict resolution, standard templates for cooperative housing articles of incorporation, and templates for tenants-in-common agreements. These resources will be made available in a user-friendly format at no cost to residents, community groups, or potential cooperative housing developers. The bill directly affects anyone seeking to form or manage collective ownership housing arrangements under Vermont law. The requirement takes effect July 1, 2026.
This bill establishes two temporary housing programs for Vermonters in crisis during fiscal years 2027-2028: the Temporary Emergency Housing and Accountability Program (TEHAP) and the Return Home Program (RHP). It directly affects individuals and households without fixed housing or at immediate risk of losing housing within seven days, including those experiencing homelessness, domestic violence, or with disabilities. Key provisions include setting strict eligibility criteria, requiring case management services to connect participants with permanent housing and support, transitioning away from hotel/motel reliance toward sustainable options like recovery housing and the Vermont Housing Investment Program (VHIP), and implementing accountability measures for program oversight. The bill mandates a tiered care approach and requires active participant engagement to achieve housing stability.
