Rep. Mark Mahali lays out housing funding priorities, urges more VHCB and modular-housing support

Representative Mark Mahali, chair of the House Committee on General and Housing, told the House Appropriations Committee on March 11 that his committee's FY26 priorities aim to address multiple, concurrent causes of Vermont's housing shortage and to reduce the price of producing housing.

Mahali said the problem is multifaceted: permitting bottlenecks, infrastructure costs, labor shortages and high construction costs. "She made all of us guess... and then she said, all of them," Mahali said, summarizing testimony from a Vermont Housing Finance Agency witness who described multiple causes of the housing crisis. Mahali added that "it costs well north of $550,000 to produce a housing unit."

Why it matters: Mahali framed the budget requests as attempts to make housing production and purchase financially viable across income bands, from very low-income households through workers who earn modestly above area median income. He said shared-equity and buy-down programs help households move into homeownership while preserving long-term affordability, and public funds often lever private capital at a high ratio.

Major funding requests and program details

- Vermont Housing & Conservation Board (VHCB): Mahali said his committee had originally sought $40 million for VHCB but reduced that ask to $25 million; he described the figure as a judgment call and said the committee had not identified a new stable non-general-fund revenue source for VHCB beyond its current base. Committee members and Mahali discussed whether additional VHCB funds should be one-time or base increases; Mahali said VHCB "would probably be happy with 1 time, but of course they'd be happier with base." (request status: not specified in the budget documents presented to the Appropriations Committee).

- Vermont Housing Finance Agency (VHFA) programs: Mahali described VHFA activity that both helps buyers and subsidizes developers through low-interest loans and tax-credit-related financing. He said VHFA historically leverages public funds with private investment and recommended funding two VHFA programs together (middle-income housing and a revolving loan program) so the agency could move funds between them as market needs change.

- Infrastructure Sustainability Fund / Bond Bank: Mahali praised the bond bank's capacity to multiply public dollars and to reach smaller, rural communities for infrastructure finance (water, sewer, septic and related infrastructure), and said his committee added funds above the governor's request because of that flexibility.

- Modular and manufactured housing capacity: The committee recommends modest investments in a VHFA modular-housing initiative to support a dedicated staff position (1 FTE) and consulting funds to develop a practical proposal; Mahali characterized modular homes as "faster" and capable of scale, though not necessarily dramatically cheaper. A separate 1 FTE for manufactured-home improvement (mobile home parks) was also discussed and appears aligned with the governor's recommendation.

- Building-trades training and workforce development: Mahali flagged proposals to expand licensed trades training (plumbing, electrical, HVAC) through State College internships and programs run by the Associated General Contractors; much of the money would support training delivery and certification to expand the construction workforce.

- HomeShare Vermont and resident services: The committee recommended support to scale HomeShare Vermont's matching program (low-cost shared housing arrangements) into additional counties, with funds for personnel and partnerships; Mahali described the program as low-cost and high-satisfaction. He also discussed continuing funding for resident services and the SAS pilot ("SAS for all"), noting expansion would be far costlier than maintaining the status quo.

- Homeownership education and "Homes for All": The committee proposed funding for homeowner education programs and for DHCD's Homes for All initiative, which aims to produce prototypical duplex/triplex/quad designs that communities could accept more quickly. Mahali said the Homes for All catalog would reduce permitting friction by offering pre-tested designs and that a separate universal-design study committee would define accessibility standards short of full ADA requirements.

Other matters raised

- Landlord-tenant work deferred: Mahali said the committee decided not to tackle landlord-tenant reforms before crossover, describing the issue as requiring a longer, more deliberative process and a potential "grand bargain" that had not yet been negotiated.

- Rental-arrears/eviction-prevention program: Mahali noted a small rental-arrears eviction-prevention program (described in testimony as a $2.5 million program) had run out of funds and that even modest additional funding could be effective. He said the program vets applicants and typically provides limited one-time assistance.

Follow-up and clarifications

Committee members asked for written follow-up on several items Mahali described, including: whether VHCB dedicates a portion of funds to land conservation versus housing; the permanence and scope of the proposed VHFA modular FTE; and which agencies would run specific programs (DHCD, VHFA, AHS, or external nonprofits). Mahali said he would retrieve testimony and circulate clarifications to the Appropriations Committee.

Quotes and attributions

All direct quotes in this article are attributed to Representative Mark Mahali during the March 11 briefing to the House Appropriations Committee. Other committee members asked questions or sought clarification; specific questioners included members identified in the committee record as Jim, Wayne, Lynn, Tom and Valerie (committee members), and a past speaker, Representative Woods, was referenced in testimony but did not speak on the record during this segment.

Ending

Mahali concluded after roughly an hour of briefing and questions, and the Appropriations Committee recessed to continue its FY26 work later in the day; health-care witnesses were expected to appear that afternoon. Several follow-up items remained outstanding, and Mahali said his committee would provide written clarifications and testimony to Appropriations members as requested.