Senate committee advances draft housing bill 1.1 while flagging funding, treasury pilot and HOA impacts

The Senate Economic Development, Housing & General Affairs Committee on Feb. 24 reviewed draft 1.1 of a comprehensive housing bill that would add new municipal-plan duties, extend down-payment tax credits and authorize treasurer-run credit facilities and a housing special fund.

Cameron Wood of the Office of Legislative Counsel told the committee that Section 1 would add to Title 24 a requirement that “municipal plan shall include an analysis of regulatory and physical constraints preventing the municipality from developing sufficient housing to meet the regional housing targets developed pursuant to” the statewide housing-needs assessment. He said the requirement would apply when a municipality updates its plan and suggested cleanup language tying the duty more clearly to the housing element.

Committee members voiced concern about small towns’ capacity to comply and asked staff to consult the Vermont League of Cities and Towns (VLCT) and regional planning commissions (RPCs). The chair said those technical supports and a conversation with administration staff would be sought before finalizing the text.

On financing, the committee discussed the down-payment assistance tax credit in Section 2. The current draft extends the credit five years at $250,000 per year; members said there was an administration request to increase annual authority by…