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Senator from Windsor lays out sweeping housing package; Senate advances key provisions
Summary
S.328 would embed town housing targets into municipal plans, extend VHFA down‑payment assistance through 2031, raise VHFA tax credit caps, and expand the treasurer's lending authority to unlock roughly $30 million in low‑cost housing financing; the Senate accepted committee amendments and ordered the bill to third reading.
The Senate took up S.328 on March 25, an extensive housing package the Economic Development committee shepherded onto the floor. The senator from Windsor outlined measures intended to increase housing production by combining regulatory changes with financing tools.
The bill would require towns to embed recently developed housing targets into their town plans and to analyze regulatory and physical constraints preventing attainment of those targets. It would extend the Vermont Housing Finance Agency's down‑payment assistance program through 2031, increase annual tax credits tied to the program (floor presentation cited an increase from $250,000 to $350,000), and raise the maximum interest‑free loan to $10,000 to help first‑time and small‑household buyers. The senator said the program “has served over 2,100 Vermonters” and that the program's modest loans have “generated over $137,000,000 in wealth” for participants, a claim she tied to committee testimony and the program's fiscal reporting.
S.328 also proposes to expand the treasurer's authority to invest in loans for economic development from 10% to 12.5% of the state's average cash balance, which the presenter described as unlocking roughly $30 million in additional low‑cost financing for housing projects deployed through intermediaries such as VHFA, local banks and credit unions. The reporter emphasized that the treasurer does not lend directly to developers; funds would be channeled through intermediaries that, according to the presentation, guarantee repayment to the state.
Other provisions described in committee report include authorizing VEDA to support multi‑unit housing developments in coordination with VHFA, creating a service‑supported housing advisory council focused on people with intellectual and developmental disabilities, and making targeted changes to allow manufactured housing in specific locations by right. Appropriations removed several direct appropriations from the bill for separate budget consideration, and the Finance and Appropriations committees recommended amendments which the Senate accepted during floor action.
Why it matters: The mix of planning requirements and financing authority aims to pair regulatory incentives with capital access to accelerate housing production. Changes to VHFA programs and the treasurer's lending cap could alter financing available to developers and first‑time buyers across Vermont.
Quotes from the floor
- "Vermont needs more housing, all types of housing, affordable, mixed income, and market rate," the senator from Windsor said while outlining the bill's objectives. - On leveraging state cash balances to finance housing, the presenter said the expansion "will unlock $30,000,000 more in additional low cost financing for housing."
Next steps: The Senate accepted committee amendments, the Appropriations committee deferred several appropriations to the budget process, and the bill was ordered to third reading for final floor consideration.
