Housing

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 (H 772) updates Vermont's residential rental laws to protect tenants and clarify landlord obligations. It bans application fees for residential rentals, limits security deposits to two months' rent, and requires specific notice periods for evictions (14 days for nonpayment, 21 days for other breaches). The bill also creates a pilot program through the State Treasurer's office to allow tenants to report on-time rent payments to credit bureaus, helping build credit history. These changes directly affect all landlords and tenants in Vermont rental agreements, with additional technical assistance available via the Champlain Valley Office of Economic Opportunity.

S.127 creates Vermont's Rental Housing Improvement Program to fund rental housing development and rehabilitation. It provides grants and forgivable loans to landlords, with funding limits of $70,000 per accessible unit or $50,000 per standard unit. Landlords must lease units to specific groups (e.g., people exiting homelessness, immigrants, individuals with disabilities) and adhere to HUD fair market rent limits for 5-10 years to qualify for loan forgiveness. The program also establishes a revolving fund for repaid loans and requires annual reporting on program outcomes.