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Sponsors introduce multi‑part housing bill (S.775) to expand financing tools, modular housing pilot and treasurer loan authority
Summary
Senators introduced S.775, a multi‑element housing bill that would authorize revenue bonds limited to assessment revenues, create a modular and offsite housing bulk‑purchase pilot with a treasurer credit facility, expand treasurer loan authority from 10% to 12.5% for affordable housing lending, and allow VHIP front funding and VEDA multi‑family financing; Ways and Means has simplified municipal reporting and removed a proposed special interest fund.
Senators and staff presented S.775 as a financing‑toolkit bill designed to improve housing finance options, particularly for small or rural Vermont projects that struggle to make modest developments pencil.
Sponsor remarks summarized six principal elements: permission for revenue (special assessment) bonds that do not pledge a town's full faith and credit (so bond approval would rely on property owner consent rather than a townwide bond vote); a modular/manufactured housing accelerator and bulk‑purchase program to aggregate small local orders; a treasurer credit backstop (a 1% credit facility within an expanded cap) to encourage manufacturers to scale production; an expansion of the treasurer's "10% for Vermonters" authority to 12.5%; explicit authority for Vermont Housing Improvement Program (VHIP) to advance project funds rather than only reimburse landlords; and a requirement that municipalities report constraints if they cannot meet housing targets.
Mark McCauley and Tom Shannon said revenue bonds would allow projects to be financed by future assessments without risking the town's full faith and credit, which proponents said would protect projects from town‑wide political campaigns against development. McCauley described the bulk‑purchase pilot as a way to help small projects achieve scale by pooling orders so manufacturers can offer lower per‑unit prices.
Todd Odum of the Office of Legislative Council walked the committee through changes the House made: Ways and Means simplified municipal reporting and removed proposed language that would automatically deposit treasurer interest into a special housing fund; Appropriations removed two DHCD positions that earlier drafts included. House General had added a 1% credit facility for offsite construction that would be drawn from within the 12.5% cap rather than increasing the aggregate cap.
Staff noted the pilot program would include a report (due in 2028) and a statutory pilot end date (June 30, 2030). Sponsors said the bill went out of the House recently with several amendments and that a clean copy would be shared with the committee; several sections of the bill reflect work teams and earlier housing legislation (S.328) that the committee had considered.
Next steps: staff said S.775 had passed House General with amendments and would be available as a clean copy; sponsors encouraged committee members to request additional briefings from John Gray or the Treasurer's office for technical detail, and they signaled coordination with Ways and Means and House Appropriations on final language.
