DEC tells committee proposal would make mobile-home parks automatically eligible for drinking-water loan aid

Vermont Department of Environmental Conservation officials told the House Corrections & Institutions Committee on March 19 that proposed capital-bill language would let nonprofit or resident-owned mobile-home parks automatically qualify for the maximum Drinking Water State Revolving Fund (DWSRF) assistance often reserved for ‘disadvantaged municipalities.’

Patrick Monks, program manager for the DWSRF, said the change in section 8 of the capital bill is intended to simplify access for manufactured-housing communities (MHCs) that currently must document median household income and water-user rates to show they meet the statute’s disadvantaged criteria. "Instead of an MHC coming to us and demonstrating what their median household income is and demonstrating what their water user rates are, they would be categorically eligible for those benefits," Monks said.

Under current DWSRF practice, eligible disadvantaged communities may receive extended loan terms up to 40 years, a reduced administrative fee that functions like an annual interest rate, and up to 50% principal forgiveness. Monks said those statutory steps—extending the term, lowering the administrative fee, then applying principal forgiveness—would not change; the proposal would only alter who is treated as categorically disadvantaged.

Committee members asked how "municipality" is defined; DEC said it follows the state statute and can include certain special districts (for example, some water or fire districts) but not school districts. Monks said the department’s intent is to include MHCs that are registered with the Department of Commerce and Community Development (ACCD) and that are either nonprofit-owned or resident-owned, removing the burden of assembling detailed income and rate documentation for small resident systems.

Members pressed on costs and consequences. A lawmaker asked whether a 40-year loan term merely shifts costs to the next generation; DEC replied that the 40-year term applies where infrastructure has that useful life and that loan forgiveness and fee reductions are tools to make otherwise infeasible projects affordable. DEC estimated the fiscal impact would be small because manufactured-housing communities represent a tiny share of SRF demand; the department also noted federal capitalization grants and grant-terms constrain the amount of principal forgiveness available.

Committee counsel and members recommended precise statutory wording. John Grayops, council for the record, advised that the current statutory phrase is “mobile home park” and that a separate bill elsewhere in the legislature intends to update terminology to “manufactured home communities”; counsel recommended aligning language either to current statute or to expect conforming changes if that other bill passes.

Next steps: committee leaders asked DEC staff to revise the draft and committed to a follow-up meeting involving the chairs of Environment and General (and housing as needed) plus legal counsel before the committee moves the language forward. The committee did not take a formal vote on the proposal during the session.

The committee recessed for a short break and scheduled DEC and chair-level consultations before further action.