An act relating to impact fees and affordable housing

This bill requires municipalities in Vermont to charge an impact fee on new residential homes larger than 5,000 square feet when building permits are issued. The collected fees must be sent to the Vermont Housing Finance Agency to support affordable housing projects that benefit the home's developer or owner. The fee is calculated at a minimum of $10,000 per 1,000 square feet above the 5,000-square-foot threshold, with municipalities allowed to set higher rates using their own formulas. The law applies to all towns, cities, villages, and unorganized towns or gorges and takes effect on July 1, 2024.