Senate advances comprehensive housing bill, orders third reading

The Vermont Senate on March 28 advanced S.127, an omnibus housing bill addressing rental rehabilitation, manufactured home support, infrastructure financing and brownfield cleanup, and ordered the bill for third reading after committee reports and floor amendments.

The bill, reported out of the Senate Committee on Economic Development, Housing, and General Affairs and described on the floor as ‘‘a smart balance bill that strengthens what’s working and introduces new tools to meet Vermont’s housing crisis,’’ would modify the Vermont Rental Housing Improvement Program (VHIP), codify a manufactured home repair program, create a Vermont Infrastructure Sustainability Fund, prioritize housing in brownfield remediation, and establish a Community and Housing Infrastructure Program (CHIP) that allows tax increment financing to support infrastructure for housing development. The committee reported its recommendation with a committee vote of 4–1–0.

Why it matters: supporters said the measure targets multiple barriers to creating and preserving affordable housing, from building and remediation costs to financing infrastructure in towns lacking water or sewer capacity. Opponents raised questions about federal-state interactions on immigration protections and about local control over municipal tax exemptions.

Key provisions and figures - VHIP changes: The bill revises the Vermont Rental Housing Improvement Program (VHIP), eliminating a five‑year affordability option while retaining a 10‑year option and replacing tenant-selection requirements with a cap tying rent to HUD fair market…