Senate amendment folds voluntary flood buyouts into community resilience grant program; TIF extension and reimbursements noted

The House Ways & Means Committee reviewed the Senate proposal of amendment to H.397 on changes tied to flood resilience and municipal finance, including adding voluntary buyouts for flood-impacted properties as an eligible use of funds under the Community Resilience and Disaster Mitigation Grant Program.

In opening remarks, Tucker Anderson, legislative counsel, told the committee: "You should have in front of you the senate proposal of amendment for h 3 97, which I will also share." Anderson said the Senate removed a standalone voluntary buyout program created in the House version and "instead added voluntary buyouts for flood impacted or flood prone properties as a use of the grant funds in the CRDMGP."

Why it matters: folding voluntary buyouts into the existing grant program changes where and how municipalities and property owners may apply for state support for property acquisition in flood-prone areas. The amendment also includes municipal finance changes—restoring a level debt-servicing option and making targeted reimbursements tied to tax-increment financing (TIF) administration.

Most important actions and details: the amendment (1) amends 20 V.S.A. §48 to add voluntary buyouts as an allowable use of Community Resilience and Disaster Mitigation Grant Program funds; (2) restores a level debt-servicing repayment option that would allow legislative bodies to select a repayment model with more level payments over time; (3) directs reimbursement to two municipalities for prior overpayments to the education fund related to TIF accounting; and (4) extends the City of Barre's authority to incur indebtedness for its TIF through 2028.

Anderson said section 21 of the senate proposal "repays, reimburses, 2 municipalities for overpayments to the ed fund. And that's the city of Barre and the town of Milton." A committee staff member added context on the accounting mechanics: the general fund will transfer money to the education fund, which will in turn disburse payments to the towns; staff characterized that move as accounting mechanics rather than a new net cost to the education fund.

Committee members asked clarifying questions about the restored debt-servicing option. Anderson described it as allowing local legislative bodies to choose a repayment model with "static payment amounts over time," likening it to "more like conventional mortgage" repayment rather than front-loaded interest schedules.

The committee discussed a related downtown housing project in Barre that is planned to use flood-resilient construction. According to briefing remarks, the Barre project will be 32 units of affordable housing that rely on a TIF for financing; the Senate amendment extends the TIF authority by two years to 2028 to align with that project timeline.

Outcome and next steps: the committee conducted a straw poll on concurring with the Senate amendment; staff reported a result of "8 0 3" on the straw poll. The straw poll is an informal gauge and not a formal recorded vote. No formal motion adopting the amendment was recorded in the committee transcript. Committee members said they would proceed with standard floor processes and monitor any additional procedural steps.

Discussion vs. decision: the record shows committee discussion and an informal straw poll in favor; it does not show a final committee motion or formal vote on the amendment in the transcript provided. Staff said the reimbursement to Barre and Milton is "net neutral to the Ed Fund" because of the internal transfer structure.

What was not decided here: the transcript does not record final enactment or floor action; it reflects committee-level review and a straw poll only. The committee did not adopt new rules or change program eligibility beyond what is in the Senate proposal of amendment as described.

Ending: committee members thanked staff and counsel for the overview and indicated they would monitor the bill on the floor and return if further questions arise.