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Committee reviews VHFA first-generation homebuyer and down payment provisions; asks technical follow-up
Summary
The committee reviewed proposed amendments to Title 32 to extend and expand first-generation homebuyer tax credits and to continue a down-payment assistance allocation through fiscal 2031; staff will check aggregate limits and technical drafting with VHFA and return with clarifications.
Members of the House Committee on General and Housing reviewed proposed Title 32 amendments that would give the Vermont Housing Finance Agency additional authority to issue tax-credit-funded grants for first-generation homebuyers and to extend a down-payment assistance authorization into fiscal year 2031.
Cameron Lloyd, Legislative Council, described draft language that would allow VHFA to issue up to $250,000 in tax credits per year and indicated the draft mirrors existing down-payment assistance language while extending the program beyond its current sunset. "So giving them the authority to issue up to $250,000 in tax credits, per year up to 1,250,000.00 for first time homebuyers," Lloyd said.
Committee discussion focused on two technical issues: whether the draft duplicate language would unintentionally change VHFA’s aggregate limit, and whether the agency could operate a proposed new grant option simultaneously with the existing loan-style down-payment assistance. Lloyd said both the duplication and aggregate-limit questions came from the agency's own drafting and that staff would follow up with VHFA and with witnesses scheduled to testify.
Committee members recounted testimony from VHFA that outlined two possible program designs: one that extends the current program through 2031 under existing limits, and a second that would remove a program limit to allow a separate $10,000 outright grant for eligible first-generation homebuyers rather than a 0% interest repayable loan. The committee did not adopt a preference; staff will ask VHFA to confirm whether the two provisions can operate together under existing aggregate limits and to supply technical drafting advice.
The committee also noted that VHFA has discussed how program definitions and asset limits (for example an asset test excluding households with more than $30,000 in assets) determine eligibility and target assistance toward lower-income and first-generation buyers.
No formal vote was taken. Staff said VHFA representatives, including a witness named Laura/Maura who previously testified to the committee, will attend upcoming meetings to answer technical questions and confirm whether the draft language as written would allow the agency to operate both the extension and the grant option.
