Senate committee advances broad housing package after removing appropriations and tax credits

The Senate Appropriations Committee on March 21 voted unanimously (7‑0) to report out S.127, a comprehensive housing bill that combines grant programs, revolving funds and policy changes aimed at adding and preserving housing across the state. Committee members agreed to remove direct appropriations and several proposed tax expenditures before advancing the bill.

Senator Cheryl Clarkson, the bill sponsor in committee, summarized the measure as a package that "builds on what works." "This bill, our housing bill this year, is not unlike our economic development bill, which I presented yesterday, which is it builds on what works," Clarkson said. "This invests further in what works wonderfully. This invests another $2,000,000 in our downtown... This is $4,000,000 for our VHIP program, which is, as you know, dollars 50,000 grants for bringing our vacant lighted non code compliant, buildings up to code and back into use."

Key provisions described in committee testimony include:

- Vermont Housing Improvement Program (VHIP) and accessory dwelling unit (ADU) incentives: The draft includes funding for VHIP (described in committee as $4,000,000) and continued support for ADU grants. The sponsor described a three‑year ADU incentive that would freeze the assessed value of…