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JFO: Expanding "10% for Vermont" could unlock $30M for housing but cost state interest income in worst case
Summary
Ted Barnett of the Joint Fiscal Office told the Committee on General Policy that raising the "10% for Vermont" cap to 12.5% could allow roughly $30 million in additional housing investment (about $12 million for off-site construction) but may reduce general fund interest income in a worst-case scenario by about $600,000 per year; JFO also flagged an uncertain $1M interest retention and two unfunded positions.
Ted Barnett of the Joint Fiscal Office told the Committee on General Policy on Feb. 19, 2026, that a proposed expansion of the state's "10% for Vermont" lending program could free up roughly $30 million for housing investments while creating modest risks for state revenue.
"We're talking about 1% to 2 and a half percent depending on the loan term or amortization period," Barnett said, describing typical interest-rate ranges for loans made through the program. Under current law the program caps lending at 10% of the state's average cash balance; the bill before the committee would raise that cap to 12.5% and set aside up to $12 million for an off-site (manufactured) construction credit facility.
Barnett said the expansion would increase the treasurer's capacity to make housing loans but that the change carries a potential budgetary cost. Using a conservative, worst-case set of assumptions'higher…
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