House General & Housing Committee reviews draft 4.1 of committee housing bill, advancing studies and funding priorities

The House General & Housing Committee met Wednesday, Feb. 26, to review draft 4.1 of its committee housing bill (DR250838), hearing staff and agency updates and debating program language and funding priorities that would affect preservation, accessibility, homeownership and housing production across Vermont.

The draft consolidates several previously temporary programs into statute and proposes changes to the Vermont Rental Housing Improvement Program (VHIP), establishes a residential universal design study committee, inserts language on brownfields and land-banking options, extends and defines tax-credit programs administered through the Vermont Housing Finance Agency, and directs a set of studies and appropriations intended to speed housing production, including further work on off-site (factory-built) housing.

Why it matters: Committee members said the bill’s mix of statutory changes, program funding and directed studies aims to move chronic housing shortfalls, accessibility gaps and contaminated-site barriers toward implementable options. Legislators repeatedly pushed for timelines and draft legislative language that would allow them to act next session rather than receive only another planning report.

Key changes and discussion

Vermont Rental Housing Improvement Program (VHIP): The draft keeps the $50,000 per-unit maximum for rehabilitation or creation of eligible rental units and preserves the 10-year forgivable loan option while removing the draft’s 5-year loan alternative. Cameron Wood, Office of Legislative Counsel, said the administration requested an exemption so entities administering VHIP funds would not be treated as licensed lenders under Vermont law for loans made under this program. Wood said the draft clarifies that the exemption applies only to lending done under the VHIP section. Committee members flagged concerns about how the larger grant-versus-loan design affects smaller “mom-and-pop” landlords and whether grants are federally taxable; staff noted testimony that most VHIP awards have been grants in practice.

Accessibility requirements: The draft retains a tie to Vermont access rules in the program’s earlier language but adjusts caps and the structure of forgivable loan forgiveness so that forgiveness is prorated across the 10‑year term rather than leaving a small unforgiven balance late in the term. Committee members discussed how homelessness-priority language inserted in prior sessions affects landlord interest in 10‑year commitments and asked advocates and administration staff to propose compromise language.

Manufactured home repair program and infrastructure fund: The text carries forward a manufactured-home improvement and repair program that currently exists in session law and would place it in statute for permanence and ongoing appropriation. The Vermont Infrastructure Sustainability Fund language mainly remained unchanged; staff noted an open question about whether the Department of Housing and Community Development should use the Department of Finance and Management’s Community Index for application ranking and said they were awaiting confirmation.

Residential universal design study committee: Representative Burrows sponsored language establishing a study committee to evaluate statewide residential universal design standards and how those standards would interact with building codes, financing, appraisal, workforce training and enforcement. Cameron Wood and committee members walked through proposed membership that, as drafted, listed about 22 appointments (legislators, industry trade groups, lenders, disability‑access organizations, and others) and a proposed appropriation. Committee members expressed concern the draft membership was large and asked staff and the sponsor to pare or prioritize appointees. The draft directs an interim report and a final report (the draft gives a November 1 report date) and allocates administrative support from the Office of Legislative Counsel and the Joint Fiscal Office; members also discussed whether the committee should continue to exist after the report is filed so the Legislature could request follow‑up testimony.

Tax credits and homebuyer programs: The draft brings several tax-credit programs from session law into statute, including a down‑payment assistance program and a first‑generation homebuyer grant. The draft adds the statutory definition used in session law for “first‑generation homebuyer” (self‑attestation that the buyer’s parents or guardians never held residential ownership in the buyer’s lifetime or lost ownership due to foreclosure, short sale or deed in lieu and have not regained ownership since). Chad Symon of the Vermont Housing Finance Agency confirmed to the committee that the draft’s timing provisions align with the agency’s plan to administer both programs.

Land bank and brownfields language: Wood said he revised the land‑bank report requirement to ask the department to return different options and to provide proposed legislative language for both a state land bank and authorizing regional and municipal land banks. The department is also asked to analyze which approach would best serve Vermont communities, including rural areas, and to recommend funding proposals. The bill also inserts language on brownfields cleanup and prioritization; committee members said that language reflected conversations with Agency of Natural Resources staff and aims to shorten brownfields cleanup timelines and prioritize cleanups tied to housing development.

Off‑site construction study and VHFA work program: The bill directs the Vermont Housing Finance Agency (VHFA) and partners to examine off‑site (factory or modular) housing production, bulk purchasing opportunities, regional collaboration and the funding and business structures needed to support expanded off‑site housing in Vermont. Committee discussion centered on timelines and deliverables: members repeatedly requested the draft require specific, actionable proposals (draft legislative language and funding recommendations) rather than only further study. VHFA staff asked for extra time to scope contracting and said the work would include outreach to manufacturers and neighboring states; members instructed staff to propose the minimum and the preferred budgets and described a desire for an interim deliverable that could inform next session’s legislation.

Appropriations, staffing and program funding discussed

Appropriations discussed in the meeting included department and program staffing and multiple program allocations. Highlights discussed in the hearing: - DHCD staffing requests: the administration requested three new classified positions and funding in fiscal 2026; committee staff drafted language approximating $450,000 for those positions (members asked for clearer position descriptions and which programs the posts would support). Two limited‑service positions already in the agency’s plans were discussed for extension. - VHCB and program funding: committee staff flagged a placeholder appropriation for housing programs run through Vermont Housing & Conservation Board (VHCB); the chair signaled that the final number could change as the committee prioritizes funding. - HomeShare Vermont: the draft included a $235,000 grant to HomeShare Vermont to fund case managers and an intake coordinator; committee staff said the figure was taken from the organization’s recent email request and asked the organization to confirm the purpose and amounts. - Resident services and SASH pilot: the draft appropriated funds to support a resident‑services program (the amount in the draft under review was $2 million, reduced from earlier drafts) and $400,000 discussed for Cathedral Square’s SASH‑for‑all pilot; members asked staff to confirm statutory status and continuity for those pilot elements. - Off‑site construction work funding: the draft included $250,000 for VHFA to develop and advance recommendations from a recent off‑site housing report; committee members sought a breakdown of that amount and asked VHFA to propose a minimum budget and a justification for the request before the committee finalizes the appropriation.

What the committee asked for next

Members repeatedly asked for tighter drafting: where possible they asked the administration and VHFA to (1) propose concrete legislative language (not just options), (2) clarify appropriation line items and minimal budgets, and (3) pare committee membership on the universal‑design study. They requested clearer timelines for interim deliverables so the Legislature could act in the next session and asked agencies to return with a breakdown of the requested $250,000 for the off‑site housing work and the minimum viable scope. Wood said he would incorporate the committee’s direction and circulate updated language ahead of further markup sessions scheduled later in the week.

Quotes (selected)

"The administration is wanting to ensure that the entities that are carrying out the provisions of this section are exempt from Vermont's licensed lenders law," said Cameron Wood, Office of Legislative Counsel, describing draft language for VHIP.

"These two programs are...in line with the [agency's] expectations," said Chad Symon, Vermont Housing Finance Agency, describing the draft's tax‑credit provisions and the down‑payment assistance and first‑generation grant programs.

Ending

Committee members scheduled further markup and asked staff and agencies to return with narrowed language and cost breakdowns. Several members said they wanted draft legislation and specific funding proposals ready to consider next session rather than only additional planning reports. The committee continued its work on the bill in a follow‑up session after lunch.