Appropriations committee advances housing measures, authorizes treasurer-led off‑site construction pilot

The House Appropriations Committee voted to advance S.328 as amended, approving changes that would let municipalities issue revenue bonds backed by special assessments, require new analyses in municipal housing plans and zoning, create several reports on housing topics, and shift an off‑site construction pilot to the State Treasurer.

“For the record, Cameron Wood, Office of Legislative Council,” said Cameron Wood, describing the bill’s Section 7 as permitting municipalities to issue revenue bonds backed by a special assessment rather than by the municipality’s full faith and credit. Wood said the manufactured‑housing language would require municipalities to allow manufactured housing in any district that permits year‑round residential development.

A Ways and Means amendment moved authority for the off‑site construction accelerator pilot from the Department of Housing and Community Development to the State Treasurer, allowing the treasurer to use RFIs/RFPs, contract with developers and manufacturers, and use a portion of the treasurer’s credit facility in support of the pilot. The amendment also codifies the Vermont Housing Finance Agency’s rental housing revolving loan program into statute and removes a lower AMI floor so the fund can be used for lower‑income projects.

Treasurer’s office officials told the committee increasing the credit facility from 10% to 12.5% and dedicating up to roughly 1% of the state’s average cash balance to the pilot could mean foregoing as much as about $600,000 in interest income in the scenario where funds are fully deployed; they also said the change could make roughly $30 million in additional lending capacity available over time. The committee heard that the per diem cost for non‑state advisory council members added by the amendment would be modest (a cited maximum of about $8,000 annually charged to AHS base budget).

Committee members asked questions about proliferating advisory councils, alignment of existing study bodies, and whether the appropriation for the Vermont Housing and Conservation Board in Section 13 should remain; staff said the VHCB appropriation language was removed because the budget already addressed it. After discussion the committee moved and approved the House Appropriations amendment, and the clerk recorded a unanimous vote to advance the bill (11‑0‑0).

The committee discussed next steps, including notifying the Senate and the possibility the bill could be elevated to the floor the same day if the Senate concurs or if a conference is convened. No floor action was recorded in the transcript excerpt provided.