Legislators back 30% set‑aside for homeless households in Vermont rental rehab program

Legislators and state housing officials on Monday reviewed proposed changes to the Vermont Rental Housing Improvement Program designed to preserve a pathway to housing for people exiting homelessness while keeping longer‑term incentives for landlords.

The committee discussed a compromise that keeps homelessness prioritization tied to the five‑year forgivable loan and allows landlords to choose a 10‑year forgivable loan that requires units be rented at the applicable U.S. Department of Housing and Urban Development (HUD) fair market rent. The proposal would require the Department of Housing to set aside at least 30% of annual VHIP appropriations each year for five‑year grants or forgivable loans that serve eligible households exiting homelessness.

The change matters because lawmakers said they worried landlords would shift to the 10‑year option if it removed the homelessness requirement, leaving fewer units prioritized for people leaving homelessness. “I was worried that there'd be this migration away from the five‑year program to the 10‑year program,” Representative Mark Mahalley, chair of the General and Housing Committee, said while summarizing the compromise.

Under the program as described to the…