Senate Conference presents last best offer on H-1 omnibus housing bill

The Senate House Conference on the omnibus housing bill, designated as H-1 and AS 127, convened on May 29, 2025, to discuss critical amendments and proposals aimed at enhancing affordable housing initiatives in Vermont.

During the meeting, key stakeholders presented a "last best offer" that included a request to implement a tax increment financing (TIF) plan at 85.75, with a focus on creating 200 affordable and moderate housing units. Notably, the proposal sought to eliminate the existing cap on tax increment retention while maintaining a sunset provision at 35 years. This adjustment aims to provide municipalities with greater flexibility in managing their housing developments.

The discussions also highlighted the importance of aligning the proposed changes with existing TIF statutes. A significant point raised was the need to adjust the timeline for municipalities to submit their tax increment financing plans from the fifth year to the tenth year following the creation of a development site. This change is intended to reflect the reality that substantial income generation typically occurs between the fifth and tenth years of a project, allowing for a more accurate assessment of projected revenues.

Participants emphasized that these adjustments are crucial for ensuring that municipalities do not retain excessive tax increments beyond what is necessary to service their debts. The proposed changes are designed to streamline the process and enhance the effectiveness of tax increment financing in supporting housing development.

As the meeting concluded, there was optimism regarding the proposal's acceptance, with confidence expressed that the governor would support the final amendments. The conference is expected to reconvene shortly to finalize discussions and move forward with the proposed changes.