Housing (Housing Finance)

This bill authorizes the Vermont Economic Development Authority (VEDA) to jointly finance multiunit housing projects (5+ units) with lenders upon request, but only after consulting with the Vermont Housing Finance Agency (VHFA). It requires VEDA to defer to VHFA on applications eligible for financing from both entities. VEDA cannot fund housing developments that already use VHFA's funding. The bill directly affects developers and lenders seeking financing for qualifying multiunit housing projects in Vermont.

This bill creates a Vermont Housing Production Revolving Fund to develop state-owned affordable housing for low and moderate-income households (defined as earning up to 150% of area median income). It authorizes the State Treasurer to issue $50 million in bonds to fund the program, which will provide loans to developers for purchasing or building housing that remains permanently affordable. Repayments of principal, interest, and fees will replenish the fund for future projects, creating a self-sustaining system. The program requires equitable distribution of funds across communities based on economic need and annual reporting to legislative committees.

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.

H 253 aims to increase housing availability and affordability in Vermont by establishing "workforce housing zones" and supporting modular construction. These zones are defined by their proximity to job centers and will receive higher thresholds for environmental review under Act 250 for housing projects and subdivisions. The bill also creates a revolving fund at the Vermont Housing Finance Agency to incentivize the development of low-cost, energy-efficient modular homes through bulk purchasing and grants for off-site construction. Additionally, state funding for public water and wastewater systems will be prioritized within these workforce housing zones to support development.

H 445 creates the Land Access and Opportunity Revolving Fund to support affordable housing for historically marginalized communities in Vermont. It is funded by a 1.5% income tax surcharge on earnings above $500,000 (repealed in 2031), administered by a new Land Access and Opportunity Board. The fund provides grants or loans for tenant-owned housing purchases, multi-unit renovations, cooperative housing development, and transitional housing projects with priority for marginalized groups. Projects must align with community resource integration, sustainable design, and support for those facing homelessness, disabilities, or justice system involvement.

H 378 establishes a new program allowing Vermont municipalities to use tax increment financing (TIF) to fund housing infrastructure projects. It enables cities and towns to leverage future increases in property tax revenue - specifically from education and municipal property taxes - to finance infrastructure like utilities, brownfield cleanup, and transportation improvements that stimulate new housing development. Municipalities must create a housing infrastructure project plan, hold public hearings, and get approval from the Vermont Economic Progress Council before using TIF funds. The bill directly affects local governments seeking to finance housing-related infrastructure without increasing tax rates, with funds restricted to approved projects and related costs.