House committees review H.775 package to spur rural housing with tax stabilizations, credit facilities and modular pilot

Members of two House committees convened a joint hearing on H.775 on Jan. 30 to review a multi-part package of tools intended to accelerate housing production in Vermont’s small towns.

Cameron Wood, legislative counsel, told the House Committee on Commerce and Economic Development and the House General & Housing Committee that Section 1 would create a rural housing finance pilot administered by the Department of Housing and Community Development (DHCD). "This is a joint hearing on H.775, which is really an act that focuses on rural housing production finances," the chair said when opening the hearing. Under the draft, DHCD may authorize tax stabilization for up to 300 housing units in eligible communities during a three-year application window and work with partners including the Vermont Housing Finance Agency and the Office of the State Treasurer to implement the pilot.

The draft sets underwriting and location limits aimed at small municipalities. Counsel said proposed projects must be sponsored by municipalities with populations under 5,000 and must not be located in a tax-increment financing (TIF) district or a defined housing development site. Proposed developments would be "primarily residential," with a residential cap of 16 units and a…