S 127 — An act relating to housing and housing development

(A) whose parents or legal guardians:

(i) do not have and during the homebuyer’s lifetime have not had any residential ownership interest in any state;

or (ii) lost ownership of a home due to foreclosure, short sale, or deed-in-lieu of foreclosure and have not owned a home since that loss;

or BILL AS INTRODUCED AND PASSED BY SENATE S.127 Page 12 of 54 (B) who has at any time been placed in foster care.

* * * (g) Credit allocation.

(1) In any fiscal year, the allocating agency may award up to:

(A) $400,000.00 in total first-year credit allocations to all applicants for rental housing projects, for an aggregate limit of $2,000,000.00 over any given five-year period that credits are available under this subdivision (A).

(B) $675,000.00 in total first-year credit allocations for loans or grants for owner-occupied unit financing or down payment loans as provided in subdivision (b)(2) of this section consistent with the allocation plan, including for new construction and manufactured housing, for an aggregate limit of $3,375,000.00 over any given five-year period that credits are available under this subdivision (B).

Of the total first-year credit allocations made under this subdivision (B), $250,000.00 shall be used each fiscal year for manufactured home purchase and replacement.

(C) $250,000.00 in total first-year credit allocations for grants to first-time homebuyers who are also first-generation homebuyers as provided in subdivision (b)(3)(D) of this section, for an aggregate limit of $1,250,000.00 over any given five-year period that credits are available under this subdivision (C).

BILL AS INTRODUCED AND PASSED BY SENATE S.127 Page 13 of 54 (2) If the full amount of first-year credits authorized by an award are not allocated to a taxpayer, the Agency may reclaim the amount not allocated and re-award such allocations to other applicants, and such re-awards shall not be subject to the limits set forth in subdivision (1) of this subsection.

(h) Credit allocation;

Down Payment Assistance Program.

(1) In fiscal year 2016 through fiscal year 2019, the allocating agency may award up to $125,000.00 in total first-year credit allocations for loans through the Down Payment Assistance Program created in subdivision (b)(2) of this section.

(2) In fiscal year 2020 through fiscal year 2026, the allocating agency may award up to $250,000.00 in total first-year credit allocations for loans through the Down Payment Assistance Program created in subdivision (b)(3) of this section.

(3) In fiscal year 2027 through fiscal year 2031, the allocating agency may award up to $250,000.00 in total first-year credit allocations for loans through the Down Payment Assistance Program created in subdivision (b)(3) of this section.

Sec.

4.

[Deleted.] * * * VHFA Rental Housing Revolving Loan Program * * * Sec.

4.

The Vermont Housing Finance Agency shall design and implement a Rental Housing Revolving Loan Program and shall BILL AS INTRODUCED AND PASSED BY SENATE S.127 Page 14 of 54 create and administer a revolving loan fund to provide subsidized loans for rental housing developments that serve middle-income households.

VT LEG #382310 v.1 AS PASSED BY SENATE S.127 Page 11 of 46 (i) seven years;

BILL AS INTRODUCED AND PASSED BY SENATE S.127 Page 15 of 54 (3) the Secretary of the Agency of Human Services or designee;

VT LEG #382310 v.1 AS PASSED BY SENATE S.127 Page 12 of 46 (4) the Commissioner of the Department of Disabilities, Aging, and Independent Living or designee;

VTBILL LEGAS #382310INTRODUCED v.1AND AS PASSED BY SENATE S.127 Page 1316 of 4654 (2) the number and description of the support needs of individuals with developmental disabilities anticipated to be served annually;

VTBILL LEGAS #382310INTRODUCED v.1AND AS PASSED BY SENATE S.127 Page 1417 of 4654 *(g) *Compensation * Housing and Publicreimbursement. Accommodation Protections * * * Sec.

For attendance at meetings during adjournment of the General Assembly, a legislative member of the Committee serving in the member’s capacity as a legislator shall be entitled to per diem compensation and reimbursement of expenses pursuant to 2 V.S.A.

§ 23 for not more than five meetings.

These payments shall be made from monies appropriated to the General Assembly.

* * * Housing and Public Accommodation Protections * * * Sec.

§§ 4501 4501 is amended to read:

or (ii) terms, conditions, privileges, or protections in the sale or rental of a dwelling or other real estate, or in the provision of services or facilities in connection with a dwelling or other real estate, because of the BILL AS INTRODUCED AND PASSED BY SENATE S.127 Page 18 of 54 person’s race, sex, sexual orientation, gender identity, age, marital status, religious creed, color, national origin, citizenship, or disability, or because the person intends to occupy a dwelling with one or more minor children, or because the person is a recipient of public assistance, or because the person is a victim of abuse, sexual assault, or stalking.

* * * VT LEG #382310 v.1 AS PASSED BY SENATE S.127 Page 15 of 46 Sec.

§§ 4502 4502 is amended to read:

§§ 4503 4503 is amended to read:

(1) To refuse to sell or rent, or refuse to negotiate for the sale or rental of, or otherwise make unavailable or deny, a dwelling or other real estate to any person because of the race, sex, sexual orientation, gender identity, age, BILL AS INTRODUCED AND PASSED BY SENATE S.127 Page 19 of 54 marital status, religious creed, color, national origin, citizenship, or disability of a person, or because a person intends to occupy a dwelling with one or more minor children, or because a person is a recipient of public assistance, or because a person is a victim of abuse, sexual assault, or stalking.

(2) To discriminate against, or to harass, any person in the terms, conditions, privileges, and protections of the sale or rental of a dwelling or VT LEG #382310 v.1 AS PASSED BY SENATE S.127 Page 16 of 46 other real estate, or in the provision of services or facilities in connection with a dwelling or other real estate, because of the race, sex, sexual orientation, gender identity, age, marital status, religious creed, color, national origin, citizenship, or disability of a person, or because a person intends to occupy a dwelling with one or more minor children, or because a person is a recipient of public assistance, or because a person is a victim of abuse, sexual assault, or stalking.

BILL AS INTRODUCED AND PASSED BY SENATE S.127 Page 20 of 54 (4) To represent to any person because of the race, sex, sexual orientation, gender identity, age, marital status, religious creed, color, national origin, citizenship, or disability of a person, or because a person intends to occupy a dwelling with one or more minor children, or because a person is a recipient of public assistance, or because a person is a victim of abuse, sexual assault, or stalking, that any dwelling or other real estate is not available for VT LEG #382310 v.1 AS PASSED BY SENATE S.127 Page 17 of 46 inspection, sale, or rental when the dwelling or real estate is in fact so available.

(7) To engage in blockbusting practices, for profit, which may include inducing or attempting to induce a person to sell or rent a dwelling by representations regarding the entry into the neighborhood of a person or persons of a particular race, sex, sexual orientation, gender identity, age, BILL AS INTRODUCED AND PASSED BY SENATE S.127 Page 21 of 54 marital status, religious creed, color, national origin, citizenship, or disability of a person, or because a person intends to occupy a dwelling with one or more minor children, or because a person is a recipient of public assistance, or because a person is a victim of abuse, sexual assault, or stalking.

(8) To deny any person access to or membership or participation in any multiple listing service, real estate brokers’ organization, or other service, VT LEG #382310 v.1 AS PASSED BY SENATE S.127 Page 18 of 46 organization, or facility relating to the business of selling or renting dwellings, or to discriminate against any person in the terms or conditions of such access, membership, or participation, on account of race, sex, sexual orientation, gender identity, age, marital status, religious creed, color, national origin, citizenship, or disability of a person, or because a person is a recipient of public assistance, or because a person is a victim of abuse, sexual assault, or stalking.

* * * BILL AS INTRODUCED AND PASSED BY SENATE S.127 Page 22 of 54 (d) If required by federal law, the verification of immigration status shall not constitute a violation of subsection (a) of this section with respect to the sale and rental of dwellings.

ACT 250 APPEALS STUDY VT LEG #382310 v.1 AS PASSED BY SENATE S.127 Page 19 of 46 (a) On or before January 15, 2026 November 15, 2025, the Land Use Review Board shall issue a report evaluating whether to transfer appeals of permit decisions and jurisdictional opinions issued pursuant to 10 V.S.A.

The Board shall convene a stakeholder group that at a minimum shall be composed of a representative of environmental interests, attorneys that practice environmental and development law in Vermont, the Vermont League of Cities and Towns, the Vermont Association of Planning and Development Agencies, the Vermont Chamber of Commerce, the Land Access and Opportunity Board, the Office of Racial Equity, the Vermont Association of Realtors, a representative of non- profit housing development interests, a representative of for-profit housing development interests, a representative of commercial development interests, an engineer with experience in development, the Agency of Commerce and Community Development, and the Agency of Natural Resources in preparing BILL AS INTRODUCED AND PASSED BY SENATE S.127 Page 23 of 54 the report.

(1) whether Whether to allow consolidation of appeals at the Board, or with the Environmental Division of the Superior Court, and how, including what resources the Board would need, if transferred to the Board, appeals of VT LEG #382310 v.1 AS PASSED BY SENATE S.127 Page 20 of 46 permit decisions issued under 24 V.S.A.

BILL AS INTRODUCED AND PASSED BY SENATE S.127 Page 24 of 54 (c) The report shall be submitted to the Senate Committees on Economic Development, Housing and General Affairs and on Natural Resources and Energy and the House Committee on Environment and Energy.

Notwithstanding any other requirements of this chapter to the contrary, development soils may be VT LEG #382310 v.1 AS PASSED BY SENATE S.127 Page 21 of 46 managed at a location permitted pursuant to an insignificant waste event approval authorization issued pursuant to the Solid Waste Management Rules that contains, at a minimum, the following:

BILL AS INTRODUCED AND PASSED BY SENATE S.127 Page 25 of 54 (5) any activity that may disturb the development soils at the permitted location shall be conducted pursuant to a soil management plan approved by the Secretary;

REPORT ON THE STATUS OF MANAGEMENT OF DEVELOPMENT SOILS VT LEG #382310 v.1 AS PASSED BY SENATE S.127 Page 22 of 46 (a) As part of the biennial report to the House Committee on Environment and the Senate Committee on Natural Resources and Energy under 10 V.S.A.

§§ 6604(c), 6604(c), the Secretary of Natural Resources shall report on the status of the management of development soils in the State under 10 V.S.A.

§§ 6604c. 6604c.

BILL AS INTRODUCED AND PASSED BY SENATE S.127 Page 26 of 54 (4) an estimate of the cost to manage development soils, depending on management method;

§§ 6602(39). 6602(39).

§§ 6641 6641 is amended to read:

POWERS VT LEG #382310 v.1 AS PASSED BY SENATE S.127 Page 23 of 46 (a) There is created the Brownfield Property Cleanup Program to enable certain interested parties to request the assistance of the Secretary to review and oversee work plans for investigating, abating, removing, remediating, and monitoring a property in exchange for protection from certain liabilities under section 6615 of this title.

REPORT On or before November 1, 2025, the Secretary of Natural Resources shall report to the House Committees on Environment and on General and Housing BILL AS INTRODUCED AND PASSED BY SENATE S.127 Page 27 of 54 and the Senate Committees on Economic Development, Housing and General Affairs and on Natural Resources and Energy with proposals to make the Program established pursuant to 10 V.S.A.

VT LEG #382310 v.1 AS PASSED BY SENATE S.127 Page 24 of 46 (2) An analysis of strengths and weaknesses of implementing a licensed site professional program within the State.

B.1103 CLIMATE AND ENVIRONMENT – FISCAL YEAR 2024 ONE-TIME APPROPRIATIONS * * * (h) In fiscal year 2024, the amount of $2,500,000 General Fund is appropriated to the Department of Environmental Conservation Environmental BILL AS INTRODUCED AND PASSED BY SENATE S.127 Page 28 of 54 Contingency Fund established pursuant to 10 V.S.A.

BROWNFIELD FUNDING The sum of $4,000,000.00 is appropriated from the General Fund to the Brownfield Revitalization Fund established in 10 V.S.A.

§ 6654.

The Agency of Commerce and Community Development shall award the amount of $2,000,000.00 in fiscal year 2026 to regional planning commissions for the purposes of brownfields assessment.

In awarding funds under this section, the Secretary of Commerce and Community Development, in consultation with the Vermont Association of Planning and Development Agencies, shall select one regional planning commission to administer these funds.

To ensure statewide availability, the selected regional planning commission shall subgrant to regional planning commissions with brownfield programs, with not more than 10 percent of the funds being used for administrative purposes.

Sec.

15.

Community and Housing Infrastructure Program VTBILL LEGAS #382310INTRODUCED v.1AND AS PASSED BY SENATE S.127 Page 2529 of 4654 §§ 1906. 1906.

(1) “Brownfield”“Affordable housing” means aeither property on which the presence or potential presence of a hazardous material, pollutant, or contaminant complicates the expansion,following: development, redevelopment, or reuse of the property.

(2)(A) “Committed”Owner-occupied meanshousing pledgedfor which the total annual cost of ownership, including principal, interest, taxes, insurance, and appropriatedcondominium forassociation thefees, purposedoes not exceed 30 percent of the currentgross andannual futureincome paymentof a household at 150 percent of financingthe andhighest relatedof costs.the following:

(3)(i) “Developer” means the personcounty undertakingmedian toincome, constructas adefined housingby development.the U.S.

(4)Department “Financing”of meansHousing debt, including principal, interest, and anyUrban feesDevelopment; or charges directly related to that debt, incurred by a sponsor, or other instruments or borrowing used by a sponsor, to pay for a housing infrastructure project and, in the case of a sponsor that is a municipality, authorized by the municipality pursuant to section 1910a of this subchapter.

(5)(ii) “Housingthe development”standard meansmetropolitan statistical area median income if the constructionmunicipality ofis onelocated orin moresuch buildingsan thatarea, includesas housing.defined by the U.S.

(6)Department “Housingof developmentHousing site”and meansUrban theDevelopment; parcel or parcels encompassing a housing development as authorized by a municipality pursuant to section 1908 of this subchapter.

(7)or “Housing(iii) infrastructurethe agreement”statewide meansmedian aincome, legallyas bindingdefined agreementby tothe financeU.S. and develop a housing infrastructure project and to VT LEG #382310 v.1 AS PASSED BY SENATE S.127 Page 26 of 46 construct a housing development among a municipality, a developer, and, if applicable, a third-party sponsor.

(8)Department “Housingof infrastructureHousing project”and meansUrban oneDevelopment. or more improvements authorized by a municipality pursuant to section 1908 of this subchapter.

(9)(B) “Improvements”Rental means:housing for which the total annual cost of renting, including rent, utilities, and condominium association fees, does not exceed 30 percent of the gross annual income of a household at 150 percent of the highest of the following:

(A)(i) the installationcounty ormedian constructionincome, ofas infrastructuredefined thatby will serve a public good and fulfill the purposeU.S. of housing infrastructure tax increment financing as stated in section 1907 of this subchapter, including utilities, digital infrastructure, transportation, public recreation, parking, public facilities and amenities, land and property acquisition and demolition, brownfield remediation, site preparation, and flood remediation and mitigation;

Department of Housing and Urban Development;

BILL AS INTRODUCED AND PASSED BY SENATE S.127 Page 30 of 54 (ii) the standard metropolitan statistical area median income if the municipality is located in such an area, as defined by the U.S.

Department of Housing and Urban Development;

or (iii) the statewide median income, as defined by the U.S.

Department of Housing and Urban Development.

(21) “Brownfield” means a property on which the presence or potential presence of a hazardous material, pollutant, or contaminant complicates the expansion, development, redevelopment, or reuse of the property.

(32) “Committed” means pledged and appropriated for the purpose of the current and future payment of financing and related costs.

(43) “Developer” means the person undertaking to construct a housing development.

(54) “Financing” means debt, including principal, interest, and any fees or charges directly related to that debt, incurred by a sponsor, or other instruments or borrowing used by a sponsor, to pay for a housing infrastructure project and, in the case of a sponsor that is a municipality, authorized by the municipality pursuant to section 1910a of this subchapter.

(65) “Housing development” means the construction of one or more buildings that includes affordable housing.

BILL AS INTRODUCED AND PASSED BY SENATE S.127 Page 31 of 54 (76) “Housing development site” means the parcel or parcels encompassing a housing development as authorized by a municipality pursuant to section 1908 of this subchapter.

(87) “Housing infrastructure agreement” means a legally binding agreement to finance and develop a housing infrastructure project and to construct a housing development among a municipality, a developer, and, if applicable, a third-party sponsor.

(98) “Housing infrastructure project” means one or more improvements authorized by a municipality pursuant to section 1908 of this subchapter.

(109) “Improvements” means:

(A) the installation or construction of infrastructure that will serve a public good and fulfill the purpose of housing infrastructure tax increment financing as stated in section 1907 of this subchapter, including utilities, digital infrastructure, transportation, public recreation, commercial and industrial facilities, parking, public facilities and amenities, land and property acquisition and demolition, brownfield remediation, site preparation, and flood remediation and mitigation;

(10)BILL AS INTRODUCED AND PASSED BY SENATE S.127 Page 32 of 54 (1110) “Legislative body” means the mayor and alderboard, the city council, the selectboard, and the president and trustees of an incorporated village, as appropriate.

(11)(1211) “Municipality” means a city, town, or incorporated village.

(12)(1312) “Original taxable value” means the total valuation as determined in accordance with 32 V.S.A.

VT(1413) LEG #382310 v.1 AS PASSED BY SENATE S.127 Page 27 of 46 (13) “Related costs” means expenses incurred and paid by a municipality, exclusive of the actual cost of constructing and financing improvements, that are directly related to the creation and implementation of the municipality’s housing infrastructure project, including reimbursement of sums previously advanced by the municipality for those purposes.

(14)(1514) “Sponsor” means the person undertaking to finance a housing infrastructure project.

Any of a municipality, a developer, or an independent BILL AS INTRODUCED AND PASSED BY SENATE S.127 Page 33 of 54 agency that meets State lending standards may serve as a sponsor for a housing infrastructure project.

§§ 1907. 1907.

PURPOSE The purpose of housing infrastructure tax increment financing is to provide revenues for improvements and related costs to stimulate housing development in Vermont.

§ 1907.

VT§ 1908. LEG #382310 v.1 AS PASSED BY SENATE S.127 Page 28 of 46 § 1908.

BILL AS INTRODUCED AND PASSED BY SENATE S.127 Page 34 of 54 (C) a tax increment financing plan meeting the standards of subsection 1910(f) of this subchapter;

and VT LEG #382310 v.1 AS PASSED BY SENATE S.127 Page 29 of 46 (F) a development schedule that includes a list, a cost estimate, and a schedule for the proposed housing infrastructure project and the proposed housing development;

on April 1 of the calendar year in which the Vermont Economic Progress Council BILL AS INTRODUCED AND PASSED BY SENATE S.127 Page 35 of 54 approves the use of tax increment financing for the housing infrastructure project pursuant to section 1910 of this subchapter.

§§ 1909. 1909.

VT LEG #382310 v.1 AS PASSED BY SENATE S.127 Page 30 of 46 (2) clearly identify the developer and the housing development for the housing development site;

§BILL 1910.AS INTRODUCED AND PASSED BY SENATE S.127 Page 36 of 54 § 1910.

The Vermont Economic Progress Council may approve only applications meeting the process requirements, the project criterion, and any of the location criteria of this section.

(b) Review.

VT LEG #382310 v.1 AS PASSED BY SENATE S.127 Page 31 of 46 (c) Process requirements.

and BILL AS INTRODUCED AND PASSED BY SENATE S.127 Page 37 of 54 (3) approved or pledged to use incremental municipal tax revenues for the housing infrastructure project in the proportion provided for municipal tax revenues in section 1910c of this subchapter.

(d) Project criterion.criterion.The Vermont Economic Progress Council shall review a municipality’s housing infrastructure project application to determine whether the projected housing development includes affordable housing.

The Vermont Economic Progress Council shall review a municipality’s housing infrastructure project application to determine whether the projected housing development includes housing.

chapter 151 (State land use and development plans) or an area exempt from the VT LEG #382310 v.1 AS PASSED BY SENATE S.127 Page 32 of 46 provisions of that chapter pursuant to 10 V.S.A.

§§ 6081(dd) 6081(dd) (interim housing exemptions);

§§ 6001(16). 6001(16).

BILL AS INTRODUCED AND PASSED BY SENATE S.127 Page 38 of 54 (f) Tax increment financing plan.

VT LEG #382310 v.1 AS PASSED BY SENATE S.127 Page 33 of 46 (6) other sources of financing and anticipated revenues;

§§ 1910a. 1910a.

The Vermont Economic Progress Council may extend this debt incursion period by up to BILL AS INTRODUCED AND PASSED BY SENATE S.127 Page 39 of 54 three years.

VT LEG #382310 v.1 AS PASSED BY SENATE S.127 Page 34 of 46 (d) The housing development site shall continue until the date and hour the indebtedness is retired or, if no debt is incurred, five years following the creation of the housing development site.

and notice to the voters BILL AS INTRODUCED AND PASSED BY SENATE S.127 Page 40 of 54 that if the tax increment received by the municipality from any property tax source is insufficient to pay the principal and interest on the debt in any year, the municipality shall remain liable for the full payment of the principal and interest for the term of the indebtedness.

§§ 1910b. 1910b.

TAX INCREMENT VT LEG #382310 v.1 AS PASSED BY SENATE S.127 Page 35 of 46 (a) As of the date the housing development site is created, the lister or assessor for the municipality shall certify the original taxable value and shall certify to the legislative body in each year thereafter during the life of the housing development site the amount by which the total valuation as determined in accordance with 32 V.S.A.

(b) Annually throughout the life of the housing development site, the lister or assessor shall include not more than the original taxable value of the real property in the assessed valuation upon which the treasurer computes the rates BILL AS INTRODUCED AND PASSED BY SENATE S.127 Page 41 of 54 of all taxes levied by the municipality and every other taxing district in which the housing development site is situated, but the treasurer shall extend all rates so determined against the entire assessed valuation of real property for that year.

VT LEG #382310 v.1 AS PASSED BY SENATE S.127 Page 36 of 46 The amount held apart each year is the “tax increment” for that year.

The final payment shall be reported to the treasurer, who shall thereafter include the entire assessed valuation of BILL AS INTRODUCED AND PASSED BY SENATE S.127 Page 42 of 54 the housing development site in the assessed valuations upon which the municipal and other tax rates are computed and extended, and thereafter no taxes from the housing development site shall be deposited in the special tax increment financing account.

VT§ 1910c. LEG #382310 v.1 AS PASSED BY SENATE S.127 Page 37 of 46 § 1910c.

Upon BILL AS INTRODUCED AND PASSED BY SENATE S.127 Page 43 of 54 incurring the first debt, a municipality shall notify the Department of Taxes and the Vermont Economic Progress Council of the beginning of the retention period of the education property tax increment.

VT LEG #382310 v.1 AS PASSED BY SENATE S.127 Page 38 of 46 (A) to prepay principal and interest on the financing;

Any remaining portion of the excess municipal property tax increment shall be distributed to the city, town, or village budget in the proportion that each budget bears to the BILL AS INTRODUCED AND PASSED BY SENATE S.127 Page 44 of 54 combined total of the budgets unless otherwise negotiated by the city, town, or village.

§§ 1910d. 1910d.

(2) provide timely notification to the Department of Taxes and the Vermont Economic Progress Council of any housing infrastructure project debt, public vote, or vote by the municipal legislative body immediately following the debt incurrence or public vote on a form prescribed by the Council, including copies of public notices, agendas, minutes, vote tally, and a VT LEG #382310 v.1 AS PASSED BY SENATE S.127 Page 39 of 46 copy of the information provided to the public pursuant to subsection 1910a(e) of this subchapter;

BILL AS INTRODUCED AND PASSED BY SENATE S.127 Page 45 of 54 (b) Annually on or before April 1, the Vermont Economic Progress Council and the Department of Taxes shall submit a report to the Senate Committees on Economic Development, Housing and General Affairs and on Finance and the House Committees on Commerce and Economic Development and on Ways and Means on housing infrastructure projects approved pursuant to this subchapter, including for each of the following:

VT LEG #382310 v.1 AS PASSED BY SENATE S.127 Page 40 of 46 (5) the number and types of housing units for which a permit is being pursued under 10 V.S.A.

(6)(56) projected and actual incremental revenue amounts;

(7)(67) the allocation of incremental revenue;

and (8)(78) projected and actual financing.

§BILL 1910e.AS INTRODUCED AND PASSED BY SENATE S.127 Page 46 of 54 § 1910e.

AUDITING Annually on or before April 1 until the year following the end of the period for retention of education property tax increment, a municipality with a housing infrastructure project approved under this subchapter shall ensure that VT LEG #382310 v.1 AS PASSED BY SENATE S.127 Page 41 of 46 the special tax increment financing account required by section 1910b of this subchapter is subject to the annual audit prescribed in section 1681 or 1690 of this title and submit a copy to the Vermont Economic Progress Council.

§§ 1910f. 1910f.

BILL AS INTRODUCED AND PASSED BY SENATE S.127 Page 47 of 54 (b) The Vermont Economic Progress Council shall prepare recommendations for the Secretary of Commerce and Community Development prior to any decision issued pursuant to subsection (a) of this section.

In VT LEG #382310 v.1 AS PASSED BY SENATE S.127 Page 42 of 46 preparing recommendations, the Council shall provide a municipality with a reasonable opportunity to submit written information in support of its position.

§§ 3325 3325 is amended to read:

§§ 3325. 3325.

BILL AS INTRODUCED AND PASSED BY SENATE S.127 Page 48 of 54 (1) the Vermont Employment Growth Incentive Program pursuant to subchapter 2 of this chapter;

and VT LEG #382310 v.1 AS PASSED BY SENATE S.127 Page 43 of 46 (3) housing infrastructure tax increment financing pursuant to 24 V.S.A.

* * * (2) “Smoke detector alarm” means a device that detects visible or invisible particles of combustion and sounds a warning alarm, is operated from a power supply within the unit or wired to it from an outside source, and isBILL VTAS LEGINTRODUCED #382310AND v.1 AS PASSED BY SENATE S.127 Page 4449 of 4654 is approved or listed for the purpose by Underwriters Laboratory or by another nationally recognized independent testing laboratory.

(b) Any single-family dwelling when transferred by sale or exchange shall contain photoelectric-only-type photoelectric-type or UL 217 compliant smoke detectors alarms in the vicinity of any bedrooms and on each level of the dwelling installed in accordance with the manufacturer’s instructions and one or more carbon monoxide detectors alarms installed in accordance with the VT LEG #382310 v.1 AS PASSED BY SENATE S.127 Page 45 of 46 manufacturer’s instructions.

REQUIREMENTS FOR TRANSFER OF DWELLING (a) The seller of a single-family dwelling, including one constructed for first occupancy, whether the transfer is by sale or exchange, shall certify to the buyer at the closing of the transaction that the dwelling is provided with photoelectric-only-type photoelectric-type or UL 217 compliant smoke BILL AS INTRODUCED AND PASSED BY SENATE S.127 Page 50 of 54 detectors alarms and carbon monoxide detectors alarms in accordance with this chapter.

(b) If the buyer notifies the seller within 10 days by certified mail from the date of conveyance of the dwelling that the dwelling lacks any photoelectric- VT LEG #382310 v.1 AS PASSED BY SENATE S.127 Page 46 of 46 only-type photoelectric-type or UL 217 compliant smoke detectors alarms, or any carbon monoxide detectors alarms, or that any detector alarm is not operable, the seller shall comply with this chapter within 10 days after notification.

§§ 2731 2731 is amended to read:

* * * * * * EffectiveTaxes Dates * * * Sec.

32 V.S.A.

§ 5811(21)(C) is amended to read:

(C) decreased by the following exemptions and deductions:

* * * (iv) an amount equal to the itemized deduction for medical expenses taken at the federal level by the taxpayer, under 26 U.S.C.

§ 213:

(I) minus the amount of the Vermont standard deduction and Vermont personal exemptions taken by the taxpayer under this subdivision (C);

and BILL AS INTRODUCED AND PASSED BY SENATE S.127 Page 51 of 54 (II) minus any amount deducted at the federal level that is attributable to the payment of an entrance fee or recurring monthly payment made to a continuing care retirement community regulated under 8 V.S.A.

chapter 151, which exceeds the deductibility limits for premiums paid during the taxable year on qualified long-term care insurance contracts under 26 U.S.C.

213(d)(10)(A).

Sec.

19.

32 V.S.A.

§ 3800 is amended to read:

§ 3800.

STATUTORY PURPOSES * * * (r) The statutory purpose of the exemption under section 3851 of this title for certain new construction and improvements is to incentivize those activities.

Sec.

20.

32 V.S.A.

§ 3851 is added to read:

§ 3851.

NEW ACCESSORY DWELLING UNITS AND CERTAIN PROPERTY IMPROVEMENTS (a) An increase in the appraisal value of a property shall be exempted from property taxation by fixing and maintaining the taxable value at the property’s grand list value in the year immediately preceding improvements in the following cases:

BILL AS INTRODUCED AND PASSED BY SENATE S.127 Page 52 of 54 (1) the property has been rehabilitated or improved using a grant or loan from the Vermont Housing Improvement Program and construction has been fully completed in the previous 12 months;

or (2) the property has been improved through the construction of a new accessory dwelling unit, as defined by 24 V.S.A.

§ 4303(38), and construction has been fully completed in the previous 12 months.

(b) A decrease in appraisal value of a property subject to this exemption due to damage or destruction from fire or act of nature may reduce the property’s taxable value below the fixed value under subsection (a) of this section.

(c) The exemption under this section shall apply to the State education property tax imposed under chapter 135 of this title and to municipal property tax.

(d) An exemption under this section shall remain in effect for three years.

When the exemption period ends, the property shall be taxed at its most recently appraised grand list value.

* * * Appropriations * * * Sec.

21.

APPROPRIATIONS The following shall be appropriated from the General Fund in fiscal year 2026:

BILL AS INTRODUCED AND PASSED BY SENATE S.127 Page 53 of 54 (1) The sum of $45,600,000.00 to the Department of Housing and Community Development for the following purposes:

(A) $15,000,000.00 granted to the Vermont Housing Finance Agency to continue implementation of the Middle-Income Homeownership Development Program;

(B) $15,000,000.00 granted to the Vermont Housing Finance Agency to continue implementation of the Rental Housing Revolving Loan Fund;

(C) $9,100,000.00 granted to the Vermont Bond Bank to implement the Vermont Infrastructure Sustainability Fund;

(D) $4,000,000.00 for the rehabilitation of eligible rental housing units under the Rental Housing Improvement Program established in 10 V.S.A.

§ 699;

(E) $2,000,000.00 to improve mobile home park infrastructure under the Manufactured Home Improvement and Repair Program established in 10 V.S.A.

§ 700;

and (F) $500,000.00 for grants to be made for the purpose of providing homebuyer education, financial literacy counseling, and foreclosure prevention programs operated by the five NeighborWorks America affiliated HomeOwnership Centers.

(2) The sum of $100,000.00 to the State Treasurer to implement the Positive Rental Payment Pilot Program.

BILL AS INTRODUCED AND PASSED BY SENATE S.127 Page 54 of 54 * * * Effective Date * * * Sec.

2218.

EFFECTIVE DATE This act shall take effect on July 1, 2025.

* * * Effective Dates * * * Sec.

18.

VT LEG #382310 v.1