House adopts conference report creating CHIP, a $200 million tax-increment tool for housing

The Vermont House adopted the committee of conference report on Senate Bill 127, an omnibus housing measure that creates a Community and Housing Infrastructure Program (CHIP) using tax-increment financing, and approved sending the action to the Senate. The roll-call result was 137 in favor and 2 opposed.

Members said the conference committee spent several days negotiating compromise language. "The conference committee met for the last 3 days this week in discussions I think I would characterize as not boring," the member from Callas said as she introduced the report and asked the House to adopt it.

The chamber’s nut graf: supporters said CHIP is intended to spur new primary residences across Vermont by allowing municipalities to capture a share of incremental property tax to pay infrastructure costs; critics warned it diverts revenue from the education fund.

The bill contains multiple elements retained from earlier versions: the Vermont Housing Rental Housing Improvement Program (VHIP), a Manufactured Home Improvement and Repair Program for mobile home parks, and an infrastructure sustainability fund administered by the Vermont Bond Bank. The conference report also leaves intact technical corrections to the rental housing revolving loan fund administered by the Vermont Housing Finance Agency (VHFA).

CHIP specifics and guardrails. The bill creates a…