An act relating to creating tools for housing production
What changed between versions
Creates the Rural Housing Finance Pilot Program (new Section 1) allowing up to 300 housing units in municipalities with populations under 5,000 over a 3-year application period. Projects are capped at 16 residential units and 5,000 square feet of commercial space, with at least 15 percent or 2 units required to be affordable for a minimum of 15 years.
Changes the Off-Site Construction Accelerator Pilot from occurring in 'one or more municipalities' to 'a municipality' (singular), narrowing the pilot to a single participating community. Also changes the report language from 'building code or codes' to 'building code.'
Provides a 10-year tax stabilization mechanism: property is valued at pre-development value for years 1-7, then phases in 25 percent (year 8), 50 percent (year 9), and 75 percent (year 10) of the property value change.
Increases the State Treasurer's general credit facility cap from 10 percent to 12.5 percent of the State's average cash balance, and adds a new separate credit facility of up to 2.5 percent specifically for climate infrastructure and resilience projects.
Creates the Vermont Housing Special Fund (new 10 V.S.A. section 12) administered by the State Treasurer, funded by appropriations, federal/state transfers, and interest paid on loans under the credit facilities. The Fund may be used to provide grants, interest-free loans, or equity stakes in housing projects.
Adds a dedicated credit facility of up to 1 percent of the State's average cash balance specifically for bulk purchasing of off-site constructed housing, with financial losses repaid from the Vermont Housing Special Fund.
Changes the conditions for issuing special assessment revenue bonds. The old version allowed a commitment letter from the Vermont Bond Bank, any FDIC/OCC/Federal Reserve-regulated bank, or NCUA-regulated credit union, or a BBB rating from a nationally recognized statistical rating organization. The new version offers three distinct options: (1) a Vermont Bond Bank commitment letter, (2) a BBB rating from a major credit rating agency, or (3) a private bank commitment letter with certification as a qualified institutional buyer under Rule 144A.
Amends 32 V.S.A. section 5404a to authorize tax agreements for affordable housing projects and specifically for the Rural Housing Finance Pilot Program, allowing the Commissioner of Taxes to approve such agreements upon recommendation of the Commissioner of Housing and Community Development.
Creates two new permanent, full-time Grants Management Specialist Housing and Community Development classified positions within the Department of Housing and Community Development.
Expands municipal planning requirements for housing targets. The official version requires municipalities to provide regulations allowing for the number of housing units needed (not just identify needs), adds a requirement to include location, age, condition, and occupancy in the housing quantification, and adds a new requirement for an inventory of available sites including zoned, unzoned, vacant, underutilized, and potential redevelopment sites.
Requires the Department of Housing and Community Development to annually confirm compliance with tax stabilization agreements with the Department of Taxes, and to submit annual reports to legislative committees by January 31 on the status of the Rural Housing Finance Pilot Program.
