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No. 69. An act relating to housing and housing development.
                                     (S.127)
It is hereby enacted by the General Assembly of the State of Vermont:
          * * * Vermont Rental Housing Improvement Program * * *
Sec. 1. 10 V.S.A. § 699 is amended to read:
§ 699. VERMONT RENTAL HOUSING IMPROVEMENT PROGRAM
   (a) Creation of Program.
                                       ***
      (5)(A) The Department may cooperate with and subgrant funds to State
agencies and governmental subdivisions and public and private organizations
in order to carry out the purposes of this subsection section.
         (B) Solely with regards to actions undertaken pursuant to this
subdivision (5), entities carrying out the provisions of this section, including
grantees, subgrantees, and contractors of the State, shall be exempt from the
provisions of 8 V.S.A. chapter 73 (licensed lenders, mortgage brokers,
mortgage loan originators, sales finance companies, and loan solicitation
companies).
                                       ***
   (d) Program requirements applicable to grants and forgivable loans.
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      (1)(A) A grant or loan shall not exceed:
              (i) $70,000.00 per unit, for rehabilitation or creation of an eligible
rental housing unit meeting the applicable building accessibility requirements
under the Vermont Access Rules; or
              (ii) $50,000.00 per unit, for rehabilitation or creation of any other
eligible rental housing unit. Up to an additional $20,000.00 per unit may be
made available for specific elements that collectively bring the unit to the
visitable standard outlined in the rules adopted by the Vermont Access Board.
                                        ***
   (e) Program requirements applicable to grants and five-year forgivable
loans. For a grant or five-year forgivable loan awarded through the Program,
the following requirements apply for a minimum period of five years:
      (1) A landlord shall coordinate with nonprofit housing partners and local
coordinated entry homelessness service organizations approved by the
Department to identify potential tenants.
      (2)(A) Except as provided in subdivision (2)(B) of this subsection
subdivision (e)(2), a landlord shall lease the unit to a household that is:
              (i) exiting homelessness, including any individual under 25 years
of age who secures housing through a master lease held by a youth service
provider on behalf of individuals under 25 years of age;
              (ii) actively working with an immigrant or refugee resettlement
program; or
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              (iii) composed of at least one individual with a disability who
receives or is eligible approved to receive Medicaid-funded home and
community based home- and community-based services or Social Security
Disability Insurance;
              (iv) displaced due to a natural disaster; or
              (v) with approval from the Department in writing, an organization
that will hold a master lease that explicitly states the unit will be used in
service of the populations described in this subsection (e).
                                        ***
         (4)(A) A landlord may convert a grant to a forgivable loan upon
approval of the Department and the housing organization that approved the
grant.
           (B) A landlord who converts a grant to a forgivable loan shall receive
a 10-percent prorated credit for loan forgiveness for each year in which the
landlord participates in the Program.
   (f) Requirements applicable to 10-year forgivable loans. For a 10-year
forgivable loan awarded through the Program, the following requirements
apply for a minimum period of 10 years:
         (1) A landlord shall coordinate with nonprofit housing partners and local
coordinated entry organizations to identify potential tenants The total cost of
rent for the unit, including utilities not covered by rent payments, shall not
exceed the applicable fair market rent established by the Department of
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Housing and Urban Development, except that a landlord may accept a housing
voucher that exceeds fair market rent, if available.
      (2)(A) Except as provided in subdivision (2)(B) of this subsection (f), a
landlord shall lease the unit to a household that is:
              (i) exiting homelessness, including any individual under 25 years
of age who secures housing through a master lease held by a youth service
provider on behalf of individuals under 25 years of age;
              (ii) actively working with an immigrant or refugee resettlement
program; or
              (iii) composed of at least one individual with a disability who is
eligible to receive Medicaid-funded home and community based services.
         (B) If, upon petition of the landlord, the Department or the housing
organization that issued the grant determines that a household under
subdivision (2)(A) of this subsection (f) is not available to lease the unit, then
the landlord shall lease the unit:
              (i) to a household with an income equal to or less than 80 percent
of area median income; or
              (ii) if such a household is unavailable, to another household with
the approval of the Department or housing organization.
      (3)(A) A landlord shall accept any housing vouchers that are available to
pay all, or a portion of, the tenant’s rent and utilities.
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         (B) If no housing voucher or federal or State subsidy is available, the
cost of rent for the unit, including utilities not covered by rent payments, shall
not exceed the applicable fair market rent established by the Department of
Housing and Urban Development.
      (4)(3) The Department shall forgive 10 percent of the a prorated amount
of a forgivable loan for each year a landlord participates in the loan program.
   (g) Minimum funding for grants and five-year forgivable loans.
      (1) Annually, the Department shall establish a minimum allocation of
funding set aside to be used for five-year grants or forgivable loans to serve
eligible households pursuant to subsection (e) of this section. Remaining funds
may be used for either five-year grants or forgivable loans or 10-year
forgivable loans pursuant to subsection (f) of this section. The set aside shall
be a minimum of 30 percent of funds disbursed annually.
      (2) The Department shall consult with the Agency of Human Services to
evaluate factors in establishing the amount of the set aside, including:
         (A) the availability of housing vouchers;
         (B) the current need for housing for eligible households;
         (C) the ability and desire of landlords to house eligible households;
         (D) the support services available for landlords; and
         (E) the prior uptake and success rates for participating landlords.
      (3) The Department shall coordinate with the local Coordinated Entry
Lead Agencies and Homeownership Centers to direct referrals for those
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individuals or families prioritized to be housed pursuant to the five-year grants
or forgivable loans.
      (4) Funds from the set aside not utilized after nine months shall become
available for 10-year forgivable loans.
      (5) The Department shall annually publish the amount of the set aside
on its website.
                                       ***
   (i) Creation of the Vermont Rental Housing Improvement Program Fund.
Funds repaid or returned to the Department from forgivable loans or grants
funded by the Program shall return to the Vermont Rental Housing
Improvement Fund to be used for Program expenditures and administrative
costs at the discretion of the Department.
   (j) Annual report. Annually, the Department shall submit a report to the
House Committees on Human Services and on General and Housing and the
Senate Committee on Economic Development, Housing and General Affairs
regarding the following:
      (1) separately, the number of units funded and the number of units
rehabilitated through grants, through a five-year forgivable loan, and through a
10-year forgivable loan;
      (2) for grants and five-year forgivable loans, for the first year after the
expiration of the lease requirements outlined in subdivision (e)(2)(A) of this
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section, whether the unit is still occupied by a tenant who meets the
qualifications of that subdivision;
      (3) for each program, for the first year after the expiration of the
applicable lease requirements outlined in this section, the amount of rent
charged by the landlord and how that rent compares to fair market rent
established by the Department of Housing and Urban Development; and
      (4) the rate of turnover for tenants housed utilizing grants or five-year
forgivable loans and 10-year forgivable loans separately.
                                * * * MHIR * * *
Sec. 2. 10 V.S.A. § 700 is added to read:
§ 700. VERMONT MANUFACTURED HOME IMPROVEMENT AND
         REPAIR PROGRAM
   (a) There is created within the Department of Housing and Community
Development the Manufactured Home Improvement and Repair Program. The
Department shall design and implement the Program to award funding to
statewide or regional nonprofit housing organizations, or both, to provide
financial assistance or awards to manufactured homeowners and manufactured
home park owners to improve existing homes, incentivize new slab placement
for prospective homeowners, and incentivize park improvements for infill of
more homes.
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   (b) The following projects are eligible for funding through the Program:
      (1) The Department may award up to $20,000.00 to owners of
manufactured housing communities to complete small-scale capital needs to
help infill vacant lots with homes, including disposal of abandoned homes, lot
grading and preparation, the siting and upgrading of electrical boxes,
enhancing E-911 safety issues, transporting homes out of flood zones, and
improving individual septic systems. Costs awarded under this subdivision
may also cover legal fees and marketing to help make it easier for home-
seekers to find vacant lots around the State.
      (2) The Department may award funding to manufactured homeowners
for which the home is their primary residence to address habitability and
accessibility issues to bring the home into compliance with safe living
conditions.
      (3) The Department may award up to $15,000.00 per grant to a
homeowner to pay for a foundation or federal Department of Housing and
Urban Development-approved slab, site preparation, skirting, tie-downs, and
utility connections on vacant lots within a manufactured home community.
   (c) The Department may adopt rules, policies, and guidelines to aid in
enacting the Program.
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            * * * Vermont Infrastructure Sustainability Fund * * *
Sec. 3. 24 V.S.A. chapter 119, subchapter 6 is amended to read:
                         Subchapter 6. Special Funds
                                      ***
§ 4686. VERMONT INFRASTRUCTURE SUSTAINABILITY FUND
   (a) Creation. There is created the Vermont Infrastructure Sustainability
Fund within the Vermont Bond Bank.
   (b) Purpose. The purpose of the Fund is to provide capital to extend and
increase capacity of water and sewer service and other public infrastructure in
municipalities where lack of extension or capacity is a barrier to housing
development.
   (c) Administration. The Vermont Bond Bank may administer the Fund in
coordination with and support from other State agencies, government
component parts, and quasi-governmental agencies.
   (d) Program parameters.
      (1) The Vermont Bond Bank, in consultation with the Department of
Housing and Community Development, shall develop program guidelines to
effectively implement the Fund.
      (2) The program shall provide low-interest loans or purchase bonds
from municipalities to expand infrastructure capacity. Eligible activities
include:
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            (A) preliminary engineering and planning;
            (B) engineering design and bid specifications;
            (C) construction for municipal water and wastewater systems;
            (D) transportation investments, including those required by municipal
regulation, the municipality’s official map, designation requirements, or other
planning or engineering identifying complete streets and transportation and
transit related improvements, including improvements to existing streets; and
            (E) other eligible activities as determined by the guidelines produced
by the Vermont Bond Bank in consultation with the Department of Housing
and Community Development.
   (e) Application requirements. Eligible project applications shall
demonstrate:
      (1) the project will create reserve capacity necessary for new housing
unit development;
      (2) the project has a direct link to housing unit production; and
      (3) the municipality has a commitment to own and operate the project
throughout its useful life.
   (f) Application criteria. In addition to any criteria developed in the
program guidelines, project applications shall be evaluated using the following
criteria:
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      (1) whether there is a direct connection to proposed or in-progress
housing development with demonstrable progress toward regional housing
targets;
      (2) whether the project is an expansion of an existing system;
      (3) the proximity to a designated area;
      (4) the project readiness and estimated time until the need for financing;
      (5) the demonstration of financing for project completion or completion
of a project component; and
      (6) the relative need of the community per the housing targets
established by the Department of Housing and Community Development.
   (g) Award terms. The Vermont Bond Bank, in consultation with the
Department of Housing and Community Development, shall establish award
terms that may include:
      (1) the maximum loan or bond amount;
      (2) the maximum term of the loan or bond amount;
      (3) the time by which amortization shall commence;
      (4) the maximum interest rate;
      (5) whether the loan is eligible for forgiveness and to what percentage or
amount;
      (6) the necessary security for the loan or bond; and
      (7) any additional covenants required to further secure the loan or bond.
   (h) Revolving fund.
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      (1) Any funds repaid or returned from the Infrastructure Sustainability
Fund shall be deposited into the Fund and used to continue the program
established in this section.
      (2) The Bank may use the funds in conjunction with other Bank
programs to accomplish the policy objectives outlined in this section.
          * * * VHFA Rental Housing Revolving Loan Program * * *
Sec. 4. 2023 Acts and Resolves No. 47, Sec. 38 is amended to read:
   Sec. 38. RENTAL HOUSING REVOLVING LOAN PROGRAM
   (a) Creation; administration. The Vermont Housing Finance Agency shall
design and implement a Rental Housing Revolving Loan Program and shall
create and administer a revolving loan fund to provide subsidized loans for
rental housing developments that serve middle-income households.
   (b) Loans; eligibility; criteria.
                                       ***
      (7) The Agency shall use one or more legal mechanisms to ensure that:
         (A) a subsidized unit remains affordable to a household earning the
applicable percent of area median income for the longer of:
            (i) seven years; or
            (ii) full repayment of the loan plus three years; and
         (B) during the affordability period determined pursuant to
subdivision (A) of this subdivision (7), the annual increase in rent for a
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subsidized unit does not exceed three percent or an amount otherwise
authorized by the Agency.
                                    ***
      * * * Housing and Residential Services Planning Committee * * *
Sec. 5. STATE HOUSING AND RESIDENTIAL SERVICES PLANNING
         COMMITTEE; REPORT
   (a) Creation. There is created the State Housing and Residential Services
Planning Committee to generate a State plan to develop housing for individuals
with developmental disabilities.
   (b) Membership. The Committee shall be composed of the following
members:
      (1) one current member of the House of Representatives, who shall be
appointed by the Speaker of the House;
      (2) one current member of the Senate, who shall be appointed by the
Committee on Committees;
      (3) the Secretary of Human Services or designee;
      (4) the Commissioner of Disabilities, Aging, and Independent Living or
designee;
      (5) the Commissioner of Housing and Community Development or
designee;
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      (6) the State Treasurer or designee;
      (7) one member, appointed by the Developmental Disabilities Housing
Initiative;
      (8) the Executive Director of the Vermont Developmental Disabilities
Council;
      (9) one member, appointed by Green Mountain Self-Advocates;
      (10) one member, appointed by Vermont Care Partners;
      (11) one member, appointed by the Vermont Housing and Conservation
Board; and
      (12) one member, appointed by the Associated General Contractors of
Vermont.
   (c) Powers and duties. The Committee shall create an actionable plan to
develop housing for individuals with developmental disabilities that reflects
the diversity of needs expressed by those individuals and their families,
including individuals with high-support needs who require 24-hour care and
those with specific communication needs. The plan shall include:
      (1) a schedule for the creation of at least 600 additional units of service-
supported housing;
      (2) the number and description of the support needs of individuals with
developmental disabilities anticipated to be served annually;
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      (3) anticipated funding needs; and
      (4) recommendations for changes in State laws or policies that are
obstacles to the development of housing needed by individuals with Medicaid-
funded home- and community-based services.
   (d) Assistance.
      (1) The Committee shall have the administrative, technical, and legal
assistance of the Department of Housing and Community Development.
      (2) Upon request of the Committee, the Department of Disabilities,
Aging, and Independent Living shall provide an analysis of the current state of
housing in Vermont for individuals with development disabilities and, to the
extent available, an analysis of the level of community support needed for
these individuals.
   (e) Report. On or before November 15, 2025, the Committee shall submit
a written report to the House Committees on General and Housing and on
Human Services and the Senate Committees on Economic Development,
Housing and General Affairs and on Health and Welfare with its findings and
any recommendations for legislative action.
   (f) Meetings.
      (1) The Secretary of Human Services shall call the first meeting of the
Committee to occur on or before July 15, 2025.
      (2) The Committee shall select a chair from among its members at the
first meeting.
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      (3) A majority of the membership shall constitute a quorum.
      (4) The Committee shall cease to exist on November 30, 2025.
   (g)(1) Compensation and reimbursement. For attendance at meetings
during adjournment of the General Assembly, a legislative member of the
Committee serving in the member’s capacity as a legislator shall be entitled to
per diem compensation and reimbursement of expenses pursuant to 2 V.S.A.
§ 23 for not more than six meetings. These payments shall be made from
monies appropriated to the General Assembly.
      (2) Members of the Committee who are not otherwise compensated for
their time shall be entitled to per diem compensation as permitted under
32 V.S.A. § 1010 for not more than six meetings. These payments shall be
made from monies appropriated to the Department of Housing and Community
Development for that purpose.
   (h) Intent to appropriate. Notwithstanding subdivision (g)(2) of this
section, per diems for the cost of attending meetings shall only be available in
the event an appropriation is made in fiscal year 2026 from the General Fund
to the Department of Housing and Community Development for that purpose.
                * * * Tax Department Housing Data Access * * *
Sec. 6. 32 V.S.A. § 5404 is amended to read:
§ 5404. DETERMINATION OF EDUCATION PROPERTY TAX GRAND
         LIST
                                      ***
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   (b) Annually, on or before August 15, the clerk of a municipality, or the
supervisor of an unorganized town or gore, shall transmit to the Director in an
electronic or other format as prescribed by the Director: education and
municipal grand list data, including exemption information and grand list
abstracts; tax rates; an extract of the assessor database also referred to as a
Computer Assisted Mass Appraisal (CAMA) system or Computer Assisted
Mass Appraisal database; and the total amount of taxes assessed in the town or
unorganized town or gore. The data transmitted shall identify each parcel by a
parcel identification number assigned under a numbering system prescribed by
the Director. Municipalities may continue to use existing numbering systems
in addition to, but not in substitution for, the parcel identification system
prescribed by the Director. If changes or additions to the grand list are made
by the listers or other officials authorized to do so after such abstract has been
so transmitted, such clerks shall forthwith certify the same to the Director.
                                       ***
                         * * * Landlord Certificate * * *
Sec. 7. REPEAL; ACT 181 PROSPECTIVE LANDLORD CERTIFICATE
         CHANGES
   2024 Acts and Resolves No. 181, Secs. 98 (landlord certificate
amendments) and 114(5) (effective date of landlord certificate amendments)
are repealed.
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Sec. 8. 32 V.S.A. § 6069 is amended to read:
§ 6069. LANDLORD CERTIFICATE
                                      ***
   (b) The owner of each rental property shall, on or before January 31 of each
year, furnish a certificate of rent to the Department of Taxes.
   (c) A certificate under this section shall be in a form prescribed by the
Commissioner and shall include the following:
      (1) the name of the each renter,;
      (2) the address and any property tax parcel identification number of the
homestead, the information required under subsection (f) of this section, the
School Property Account Number of the rental property;
      (3) the name of the owner or landlord of the rental property;
      (4) the phone number, email address, and mailing address of the owner
or landlord of the rental property, as available;
      (5) the type or types of rental units on the rental property;
      (6) the number of rental units on the rental property;
      (7) the number of ADA-accessible units on the rental property; and
      (8) any additional information that the Commissioner determines is
appropriate.
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                                     ***
   (f) Annually on or before October 31, the Department shall prepare and
make available to a member of the public upon request a database in the form
of a sortable spreadsheet that contains the following information for each rental
unit for which the Department received a certificate pursuant to this section:
      (1) name of owner or landlord;
      (2) mailing address of landlord;
      (3) location of rental unit;
      (4) type of rental unit;
      (5) number of units in building; and
      (6) School Property Account Number. Annually on or before December
15, the Department shall submit a report on the aggregated data collected under
this section to the House Committee on General and Housing and the Senate
Committee on Economic Development, Housing and General Affairs.
                         * * * Land Bank Report * * *
Sec. 9. DHCD LAND BANK REPORT
   (a) On or before November 1, 2026, the Department of Housing and
Community Development shall issue a report to the House Committee on
General and Housing and the Senate Committee on Economic Development,
Housing and General Affairs outlining a legal framework for implementation
of a State land bank. The report shall include proposed legislative language
specific to:
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      (1) the creation and ongoing administration of a statewide land bank;
      (2) the authorization of regional or municipal land banks; and
      (3) the identification of funding proposals to support the establishment
and sustainability of each separate model.
   (b) The report shall include an analysis on which option, the creation of a
statewide land bank or the authorization of regional or municipal land banks,
best serves the interest of Vermont communities, including rural communities.
   (c) On or before January 15, 2026, the Department of Housing and
Community Development shall provide a written update to the House
Committee on General and Housing and the Senate Committee on Economic
Development, Housing and General Affairs on progress made, including a
preliminary assessment of the information required in the final report.
         * * * Housing and Public Accommodations Protections * * *
Sec. 10. 9 V.S.A. § 4456a is amended to read:
§ 4456a. RESIDENTIAL RENTAL APPLICATION FEES; PROHIBITED
   (a) A landlord or a landlord’s agent shall not charge an application fee to
any individual in order to apply to enter into a rental agreement for a
residential dwelling unit. This section subsection shall not be construed to
prohibit a person from charging a fee to a person in order to apply to rent
commercial or nonresidential property.
   (b)(1) In order to conduct a background or credit check, a landlord shall
accept any of the following:
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         (A) an original or a copy of any unexpired form of government-
issued identification;
         (B) an Individual Taxpayer Identification Number; or
         (C) a Social Security number.
      (2) A landlord or a landlord’s agent shall not require a Social Security
number for the completion of a residential rental application or refuse to accept
an application due to the lack of a Social Security number.
Sec. 11. 9 V.S.A. § 4501 is amended to read:
§ 4501. DEFINITIONS
   As used in this chapter:
                                        ***
      (12)(A) “Harass” means to engage in unwelcome conduct that detracts
from, undermines, or interferes with a person’s:
             (i) use of a place of public accommodation or any of the
accommodations, advantages, facilities, or privileges of a place of public
accommodation because of the person’s race, creed, color, national origin,
citizenship, immigration status, marital status, sex, sexual orientation, gender
identity, or disability; or
             (ii) terms, conditions, privileges, or protections in the sale or rental
of a dwelling or other real estate, or in the provision of services or facilities in
connection with a dwelling or other real estate, because of the person’s race,
sex, sexual orientation, gender identity, age, marital status, religious creed,
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color, national origin, citizenship, immigration status, or disability, or because
the person intends to occupy a dwelling with one or more minor children, or
because the person is a recipient of public assistance, or because the person is a
victim of abuse, sexual assault, or stalking.
                                       ***
Sec. 12. 9 V.S.A. § 4502 is amended to read:
§ 4502. PUBLIC ACCOMMODATIONS
   (a) An owner or operator of a place of public accommodation or an agent
or employee of such owner or operator shall not, because of the race, creed,
color, national origin, citizenship, immigration status, marital status, sex,
sexual orientation, or gender identity of any person, refuse, withhold from, or
deny to that person any of the accommodations, advantages, facilities, and
privileges of the place of public accommodation.
                                       ***
Sec. 13. 9 V.S.A. § 4503 is amended to read:
§ 4503. UNFAIR HOUSING PRACTICES
   (a) It shall be unlawful for any person:
      (1) To refuse to sell or rent, or refuse to negotiate for the sale or rental
of, or otherwise make unavailable or deny, a dwelling or other real estate to
any person because of the race, sex, sexual orientation, gender identity, age,
marital status, religious creed, color, national origin, citizenship, immigration
status, or disability of a person, or because a person intends to occupy a
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dwelling with one or more minor children, or because a person is a recipient of
public assistance, or because a person is a victim of abuse, sexual assault, or
stalking.
      (2) To discriminate against, or to harass, any person in the terms,
conditions, privileges, and protections of the sale or rental of a dwelling or
other real estate, or in the provision of services or facilities in connection with
a dwelling or other real estate, because of the race, sex, sexual orientation,
gender identity, age, marital status, religious creed, color, national origin,
citizenship, immigration status, or disability of a person, or because a person
intends to occupy a dwelling with one or more minor children, or because a
person is a recipient of public assistance, or because a person is a victim of
abuse, sexual assault, or stalking.
      (3) To make, print, or publish, or cause to be made, printed, or published
any notice, statement, or advertisement, with respect to the sale or rental of a
dwelling or other real estate that indicates any preference, limitation, or
discrimination based on race, sex, sexual orientation, gender identity, age,
marital status, religious creed, color, national origin, citizenship, immigration
status, or disability of a person, or because a person intends to occupy a
dwelling with one or more minor children, or because a person is a recipient of
public assistance, or because a person is a victim of abuse, sexual assault, or
stalking.
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      (4) To represent to any person because of the race, sex, sexual
orientation, gender identity, age, marital status, religious creed, color, national
origin, citizenship, immigration status, or disability of a person, or because a
person intends to occupy a dwelling with one or more minor children, or
because a person is a recipient of public assistance, or because a person is a
victim of abuse, sexual assault, or stalking, that any dwelling or other real
estate is not available for inspection, sale, or rental when the dwelling or real
estate is in fact so available.
                                       ***
      (6) To discriminate against any person in the making or purchasing of
loans or providing other financial assistance for real-estate-related transactions
or in the selling, brokering, or appraising of residential real property, because
of the race, sex, sexual orientation, gender identity, age, marital status,
religious creed, color, national origin, citizenship, immigration status, or
disability of a person, or because a person intends to occupy a dwelling with
one or more minor children, or because a person is a recipient of public
assistance, or because a person is a victim of abuse, sexual assault, or stalking.
      (7) To engage in blockbusting practices, for profit, which may include
inducing or attempting to induce a person to sell or rent a dwelling by
representations regarding the entry into the neighborhood of a person or
persons of a particular race, sex, sexual orientation, gender identity, age,
marital status, religious creed, color, national origin, citizenship, immigration
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status, or disability of a person, or because a person intends to occupy a
dwelling with one or more minor children, or because a person is a recipient of
public assistance, or because a person is a victim of abuse, sexual assault, or
stalking.
      (8) To deny any person access to or membership or participation in any
multiple listing service, real estate brokers’ organization, or other service,
organization, or facility relating to the business of selling or renting dwellings,
or to discriminate against any person in the terms or conditions of such access,
membership, or participation, on account of race, sex, sexual orientation,
gender identity, age, marital status, religious creed, color, national origin,
citizenship, immigration status, or disability of a person, or because a person is
a recipient of public assistance, or because a person is a victim of abuse, sexual
assault, or stalking.
                                       ***
      (12) To discriminate in land use decisions or in the permitting of
housing because of race, sex, sexual orientation, gender identity, age, marital
status, religious creed, color, national origin, citizenship, immigration status,
disability, the presence of one or more minor children, income, or because of
the receipt of public assistance, or because a person is a victim of abuse, sexual
assault, or stalking, except as otherwise provided by law.
                                       ***
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   (d) If required by federal law, the verification of immigration status or
differential treatment on the basis of citizenship or immigration status shall not
constitute a violation of subsection (a) of this section with respect to the sale
and rental of dwellings.
   (e) For purposes of subdivision (a)(6) of this section, it shall not constitute
unlawful discrimination for a lender to consider a credit applicant’s
immigration status to the extent such status has bearing on the lender’s rights
and remedies regarding loan repayment and further provided such
consideration is consistent with any applicable federal law or regulation.
                             * * * LURB Study * * *
Sec. 14. 2024 Acts and Resolves No. 181, Sec. 11a is amended to read:
   Sec. 11a. ACT 250 APPEALS STUDY
   (a) On or before January 15, 2026 November 15, 2025, the Land Use
Review Board shall issue a report evaluating whether to transfer appeals of
permit decisions and jurisdictional opinions issued pursuant to 10 V.S.A.
chapter 151 to the Land Use Review Board or whether they should remain at
the Environmental Division of the Superior Court. The Board shall convene a
stakeholder group that at a minimum shall be composed of a representative of
environmental interests, attorneys that practice environmental and
development law in Vermont, the Vermont League of Cities and Towns, the
Vermont Association of Planning and Development Agencies, the Vermont
Chamber of Commerce, the Land Access and Opportunity Board, the Office of
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Racial Equity, the Vermont Association of Realtors, a representative of non-
profit nonprofit housing development interests, a representative of for-profit
housing development interests, a representative of commercial development
interests, an engineer with experience in development, the Agency of
Commerce and Community Development, and the Agency of Natural
Resources in preparing the report. The Board shall provide notice of the
stakeholder meetings on its website and each meeting shall provide time for
public comment.
   (b) The report shall at minimum recommend:
      (1) whether to allow consolidation of appeals at the Board, or with the
Environmental Division of the Superior Court, and how, including what
resources the Board would need, if transferred to the Board, appeals of permit
decisions issued under 24 V.S.A. chapter 117 and the Agency of Natural
Resources can be consolidated with Act 250 appeals;
      (2) how to prioritize and expedite the adjudication of appeals related to
housing projects, including the use of hearing officers to expedite appeals and
the setting of timelines for processing of housing appeals;
      (3) procedural rules to govern the Board’s administration of Act 250 and
the adjudication of appeals of Act 250 decisions. These rules shall include
procedures to create a firewall and eliminate any potential for conflicts with
the Board managing appeals and issuing permit decisions and jurisdictional
opinions; and
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      (4) other actions the Board should take to promote the efficient and
effective adjudication of appeals, including any procedural improvements to
the Act 250 permitting process and jurisdictional opinion appeals.
   (c) The report shall be submitted to the Senate Committees on Economic
Development, Housing and General Affairs and on Natural Resources and
Energy and the House Committee on Environment and Energy.
                             * * * Brownfields * * *
Sec. 15. 10 V.S.A. § 6604c is amended to read:
§ 6604c. MANAGEMENT OF DEVELOPMENT SOILS
   (a) Management of development soils. Notwithstanding any other
requirements of this chapter to the contrary, development soils may be
managed at a location permitted pursuant to an insignificant waste event
approval authorization issued pursuant to the Solid Waste Management Rules
that contains, at a minimum, the following:
      (1) the development soils are generated from a hazardous materials site
managed pursuant to a corrective action plan or a soil management plan
approved by the Secretary;
      (2) the development soils have been tested for arsenic, lead, and
polyaromatic hydrocarbons pursuant to a monitoring plan approved by the
Secretary that ensures that the soils do not leach above groundwater
enforcement standards;
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      (3) the location where the soils are managed is appropriate for the
amount and type of material being managed;
      (4) the soils are capped in a manner approved by the Secretary;
      (5) any activity that may disturb the development soils at the permitted
location shall be conducted pursuant to a soil management plan approved by
the Secretary; and
      (6) the permittee files a record notice of where the soils are managed in
the land records.
                                      ***
Sec. 16. REPORT ON THE STATUS OF MANAGEMENT OF
         DEVELOPMENT SOILS
   (a) As part of the biennial report to the House Committee on Environment
and the Senate Committee on Natural Resources and Energy under 10 V.S.A.
§ 6604(c), the Secretary of Natural Resources shall report on the status of the
management of development soils in the State under 10 V.S.A. § 6604c. The
report shall include:
      (1) the number of insignificant waste event approval authorizations
issued by the Secretary in the previous two years for the management of
development soils;
      (2) the number of certified categorical solid waste facilities operating in
the State for the management of development soils;
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      (3) a summary of how the majority of development soils in the State are
being managed;
      (4) an estimate of the cost to manage development soils, depending on
management method; and
      (5) any additional information the Secretary determines relevant to the
management of development soils in the State.
   (b) As used in this section, “development soil” has the same meaning as in
10 V.S.A. § 6602(39).
Sec. 17. 10 V.S.A. § 6641 is amended to read:
§ 6641. BROWNFIELD PROPERTY CLEANUP PROGRAM; CREATION;
         POWERS
   (a) There is created the Brownfield Property Cleanup Program to enable
certain interested parties to request the assistance of the Secretary to review
and oversee work plans for investigating, abating, removing, remediating, and
monitoring a property in exchange for protection from certain liabilities under
section 6615 of this title. The Program shall be administered by the Secretary
who shall:
                                       ***
   (c) When conducting any review required by this subchapter, the Secretary
shall prioritize the review of remediation at a site that contains housing or that
is planned for the construction or rehabilitation of single-family or multi-
family housing.
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Sec. 18. BROWNFIELDS PROCESS IMPROVEMENT; REPORT
   On or before November 1, 2025, the Secretary of Natural Resources shall
report to the House Committees on Environment and on General and Housing
and the Senate Committees on Economic Development, Housing and General
Affairs and on Natural Resources and Energy with proposals to make the
Program established pursuant to 10 V.S.A. chapter 159, subchapter 3
(brownfields reuse and liability limitation) substantially more efficient. At a
minimum, the report shall include both of the following:
      (1) A survey of stakeholders in the brownfields program to identify
areas that present challenges to the redevelopment of contaminated properties,
with a focus on redevelopment for housing. The Secretary shall provide
recommendations to resolve these challenges.
      (2) An analysis of strengths and weaknesses of implementing a licensed
site professional program within the State. The Secretary shall make a
recommendation on whether such a program should be implemented. If the
Secretary recommends implementation, the report shall include any changes to
statute or budget needed to implement this program.
Sec. 19. FISCAL YEAR 2026 ENVIRONMENTAL CONTINGENCY FUND
         DISBURSEMENT FOR BROWNFIELDS
   In fiscal year 2026, the Secretary of Natural Resources is authorized to
disburse up to $2,000,000.00 from the Environmental Contingency Fund for
the assessment, planning, and cleanup of brownfields sites.
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                      * * * Tax Increment Financing * * *
Sec. 20. 24 V.S.A. chapter 53, subchapter 7 is added to read:
         Subchapter 7. Community and Housing Infrastructure Program
§ 1906. DEFINITIONS
   As used in this subchapter:
       (1) “Affordable housing” has the same meaning as in section 4303 of
this title.
       (2) “Affordable housing development” means a housing development of
which at least 15 percent of the units are affordable housing units. Affordable
units shall be subject to covenants or restrictions that preserve their
affordability until all indebtedness for the housing infrastructure project of
which the housing development is part has been retired.
       (3) “Brownfield” means a property on which the presence or potential
presence of a hazardous material, pollutant, or contaminant complicates the
expansion, development, redevelopment, or reuse of the property.
       (4) “Committed” means pledged and appropriated for the purpose of the
current and future payment of financing and related costs.
       (5) “Developer” means the person undertaking to construct a housing
development.
       (6) “Financing” means debt, including principal, interest, and any fees
or charges directly related to that debt, incurred by a sponsor, or other
instruments or borrowing used by a sponsor, to pay for a housing infrastructure
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project and, in the case of a sponsor that is a municipality, authorized by the
municipality pursuant to section 1910a of this subchapter.
      (7) “Housing development” means the construction, rehabilitation, or
renovation of any building on a housing development site approved under this
subchapter.
      (8) “Housing development site” means the parcel or parcels
encompassing a housing development as authorized by a municipality pursuant
to section 1908 of this subchapter.
      (9) “Housing infrastructure agreement” means a legally binding
agreement to finance and develop a housing infrastructure project and to
construct a housing development among a municipality, a developer, and, if
applicable, a third-party sponsor.
      (10) “Housing infrastructure project” means one or more improvements
authorized by a municipality pursuant to section 1908 of this subchapter.
      (11) “Improvements” means:
         (A) the installation, construction, or reconstruction of infrastructure
that will serve a public good and fulfill the purpose stated in section 1907 of
this subchapter; and
         (B) the funding of debt service interest payments for a period of up to
four years, beginning on the date on which the debt is first incurred.
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      (12) “Legislative body” means the mayor and alderboard, the city
council, the selectboard, and the president and trustees of an incorporated
village, as appropriate.
      (13) “Lifetime education property tax increment retention” means the
total education property tax increment to be retained for a housing
infrastructure project across its lifetime.
      (14) “Moderate-income housing” means housing for which the total
annual cost of renting or ownership, as applicable, does not exceed 30 percent
of the gross annual income of a household at 150 percent of the highest of the
following:
         (A) the county median income, as defined by the U.S. Department of
Housing and Urban Development;
         (B) the standard metropolitan statistical area median income if the
municipality is located in such an area, as defined by the U.S. Department of
Housing and Urban Development; or
         (C) the statewide median income, as defined by the U.S. Department
of Housing and Urban Development.
      (15) “Moderate-income housing development” means a housing
development of which at least 25 percent of the units are moderate-income
housing units. Moderate-income units shall be subject to covenants or
restrictions that preserve their affordability until all indebtedness for the
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housing infrastructure project of which the housing development is part has
been retired.
      (16) “Municipality” means a city, town, or incorporated village.
      (17) “Original taxable value” means the total valuation as determined in
accordance with 32 V.S.A. chapter 129 of all taxable real property located
within a housing development site as of its creation date, provided that no
parcel within the housing development site shall be divided or bisected.
      (18) “Related costs” means expenses incurred and paid by a
municipality, exclusive of the actual cost of constructing and financing
improvements, that are directly related to the creation and implementation of
the municipality’s housing infrastructure project, including reimbursement of
sums previously advanced by the municipality for those purposes. Related
costs may include direct municipal expenses such as departmental or personnel
costs related to creating or administering the housing infrastructure project to
the extent they are paid from the tax increment realized from municipal and not
education taxes and using only that portion of the municipal increment above
the percentage required for servicing debt as determined in accordance with
section 1910c of this subchapter.
      (19) “Sponsor” means the person undertaking to finance a housing
infrastructure project. Any of a municipality, a developer, or an independent
agency that meets State lending standards may serve as a sponsor for a housing
infrastructure project.
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§ 1907. PURPOSE
   The purpose of the Community and Housing Infrastructure Program is to
encourage the development of new primary residences for households of low
and moderate income across both rural and urban areas of all Vermont counties
that would not be created but for the infrastructure improvements funded by
the Program.
§ 1908. CREATION OF HOUSING INFRASTRUCTURE PROJECT AND
         HOUSING DEVELOPMENT SITE
   (a) The legislative body of a municipality may create within its jurisdiction
a housing infrastructure project, which shall consist of improvements that
stimulate the development of housing, and a housing development site, which
shall consist of the parcel or parcels on which a housing development is
installed or constructed.
   (b) To create a housing infrastructure project and housing development
site, a municipality, in coordination with stakeholders, shall:
      (1) develop a housing development plan, including:
         (A) a description of the proposed housing infrastructure project, the
proposed housing development, and the proposed housing development site;
         (B) identification of a sponsor;
         (C) a tax increment financing plan meeting the standards of
subsection 1910(h) of this subchapter;
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         (D) a pro forma projection of expected costs of the proposed housing
infrastructure project;
         (E) a projection of the tax increment to be generated by the proposed
housing development;
         (F) a development schedule that includes a list, a cost estimate, and a
schedule for the proposed housing infrastructure project and the proposed
housing development; and
         (G) a determination that the proposed housing development furthers
the purpose of section 1907 of this subchapter;
      (2) develop a plan describing the housing development site by its
boundaries and the properties therein, entitled “Proposed Housing
Development Site (municipal name), Vermont”;
      (3) hold one or more public hearings, after public notice, on the
proposed housing infrastructure project, including the plans developed
pursuant to this subsection; and
      (4) adopt by act of the legislative body of the municipality the plan
developed under subdivision (2) of this subsection, which shall be recorded
with the municipal clerk and lister or assessor.
   (c) The creation of a housing development site shall occur at 12:01 a.m. on
April 1 of the calendar year in which the Vermont Economic Progress Council
approves the use of tax increment financing for the housing infrastructure
project pursuant to section 1910 of this subchapter.
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§ 1909. HOUSING INFRASTRUCTURE AGREEMENT
   (a) The housing infrastructure agreement for a housing infrastructure
project shall:
      (1) clearly identify the sponsor for the housing infrastructure project;
      (2) clearly identify the developer and the housing development for the
housing development site;
      (3) obligate the tax increments retained pursuant to section 1910c of this
subchapter for not more than the financing and related costs for the housing
infrastructure project;
      (4) provide that any housing unit within the housing development be
offered exclusively as a primary residence until all indebtedness for the
housing infrastructure project of which the housing development is part has
been retired, provided that this condition shall be satisfied by biennially
providing a landlord certificate or homestead declaration; and
      (5) provide for performance assurances to reasonably secure the
obligations of all parties under the housing infrastructure agreement.
   (b) A municipality shall provide notice of the terms of the housing
infrastructure agreement for the municipality’s housing infrastructure project
to the legal voters of the municipality and shall provide the same information
as set forth in subsection 1910a(e) of this subchapter.
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§ 1910. HOUSING INFRASTRUCTURE PROJECT APPLICATION;
         VERMONT ECONOMIC PROGRESS COUNCIL
   (a) Application. A municipality, upon approval of its legislative body, may
apply to the Vermont Economic Progress Council to use tax increment
financing for a housing infrastructure project.
   (b) But-for test. The Vermont Economic Progress Council shall review
each application other than those for which the housing development is an
affordable housing development to determine whether the infrastructure
improvements proposed to serve the housing development site and the
proposed housing development would not have occurred as proposed in the
application or would have occurred in a significantly different and less
desirable manner than as proposed in the application but for the proposed
utilization of the incremental tax revenues.
   (c) Process requirements. The Vermont Economic Progress Council shall
review a municipality’s housing infrastructure project application to determine
whether the municipality has:
      (1) created a housing infrastructure project and housing development
site pursuant to section 1908 of this subchapter;
      (2) executed a housing infrastructure agreement for the housing
infrastructure project that adheres to the standards of section 1909 of this
subchapter with a developer and, if the municipality is not financing the
housing infrastructure project itself, a sponsor; and
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      (3) approved or pledged to use incremental municipal tax revenues for
the housing infrastructure project in the proportion provided for municipal tax
revenues in section 1910c of this subchapter.
   (d) Project criteria. The Vermont Economic Progress Council shall review
a municipality’s housing infrastructure project application to determine
whether:
      (1) at least 60 percent of the floor area of the projected housing
development is dedicated to housing; or
      (2) the projected housing development meaningfully addresses the
purpose of section 1907 of this subchapter.
   (e) Affordability criterion. The Vermont Economic Progress Council shall
review a municipality’s housing infrastructure project application to determine
whether the projected housing development is an affordable housing
development or a moderate-income housing development for purposes of the
increased education property tax increment retention percentage under section
1910c of this subchapter.
   (f) Tax increment financing plan. The Vermont Economic Progress
Council shall approve a municipality’s tax increment financing plan prior to a
sponsor’s incurrence of debt for the housing infrastructure project, including, if
the sponsor is a municipality, prior to a public vote to pledge the credit of the
municipality under section 1910a of this subchapter. The tax increment
financing plan shall include:
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      (1) a statement of costs and sources of revenue;
      (2) estimates of assessed values within the housing development site;
      (3) the portion of those assessed values to be applied to the housing
infrastructure project;
      (4) the resulting tax increments in each year of the financial plan and the
lifetime education property tax increment retention;
      (5) the amount of bonded indebtedness or other financing to be incurred;
      (6) other sources of financing and anticipated revenues; and
      (7) the duration of the financial plan.
   (g) Approval. The Vermont Economic Progress Council shall approve or
deny an application submitted pursuant to this section not later than 90 days
following the site visit conducted as part of the application’s review. The
Vermont Economic Progress Council shall only approve tax increment
financing for applications:
      (1) that meet the process requirements, either of the project criteria of
this section, and, for an application for which the housing development is not
an affordable housing development, the but-for test;
      (2) for which the Council has approved the tax increment financing
plan; and
      (3) that are submitted on or before December 31, 2035.
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   (h) Limit. The Vermont Economic Progress Council shall not annually
approve more than $200,000,000.00 in aggregate lifetime education property
tax increment retention.
§ 1910a. INDEBTEDNESS
   (a) A municipality approved for tax increment financing under section
1910 of this subchapter may incur indebtedness against revenues of the
housing development site at any time during a period of up to five years
following the creation of the housing development site. The Vermont
Economic Progress Council may extend this debt incursion period by up to
three years.
   (b) Notwithstanding any provision of any municipal charter, each instance
of borrowing by a municipality to finance or otherwise pay for a housing
infrastructure project shall occur only after the legal voters of the municipality,
by a majority vote of all voters present and voting on the question at a special
or annual municipal meeting duly warned for the purpose, authorize the
legislative body to pledge the credit of the municipality, borrow, or otherwise
secure the debt for the specific purposes so warned.
   (c) Any indebtedness incurred under this section may be retired over any
period authorized by the legislative body of the municipality.
   (d) The housing development site shall continue until the date and hour the
indebtedness is retired or, if no debt is incurred, the debt incursion period ends.
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   (e) A municipal legislative body shall provide information to the public
prior to the public vote required under subsection (b) of this section. This
information shall include the amount and types of debt and related costs to be
incurred, including principal, interest, and fees; terms of the debt; the housing
infrastructure project to be financed; the housing development projected to
occur because of the housing infrastructure project; and notice to the voters
that if the tax increment received by the municipality from any property tax
source is insufficient to pay the principal and interest on the debt in any year,
the municipality shall remain liable for the full payment of the principal and
interest for the term of the indebtedness. If interfund loans within the
municipality are used, the information must also include documentation of the
terms and conditions of the loan.
   (f) If interfund loans within the municipality are used as the method of
financing, no interest shall be charged.
   (g) The use of a bond anticipation note shall not be considered a first
incurrence of debt pursuant to subsection (a) of this section.
§ 1910b. ORIGINAL TAXABLE VALUE; TAX INCREMENT
   (a) As of the date the housing development site is created, the lister or
assessor for the municipality shall certify the original taxable value and shall
certify to the legislative body in each year thereafter during the life of the
housing development site the amount by which the total valuation as
determined in accordance with 32 V.S.A. chapter 129 of all taxable real
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property within the housing development site has increased or decreased
relative to the original taxable value.
   (b) Annually throughout the life of the housing development site, the lister
or assessor shall include not more than the original taxable value of the real
property in the assessed valuation upon which the treasurer computes the rates
of all taxes levied by the municipality and every other taxing district in which
the housing development site is situated, but the treasurer shall extend all rates
so determined against the entire assessed valuation of real property for that
year.
   (c) Annually throughout the life of the housing development site, a
municipality shall remit not less than the aggregate education property tax due
on the original taxable value to the Education Fund.
   (d) Annually throughout the life of the housing development site, the
municipality shall hold apart, rather than remit to the taxing districts, that
proportion of all taxes paid that year on the real property within the housing
development site that the excess valuation bears to the total assessed valuation.
The amount held apart each year is the “tax increment” for that year. The tax
increment shall only be used for financing and related costs.
   (e) Not more than the percentages established pursuant to section 1910c of
this subchapter of the municipal and State education tax increments received
with respect to the housing development site and committed for the payment
for financing for improvements and related costs shall be segregated by the
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municipality in a special tax increment financing account and in its official
books and records until all capital indebtedness incurred for the housing
infrastructure project has been fully paid. The final payment shall be reported
to the treasurer, who shall thereafter include the entire assessed valuation of the
housing development site in the assessed valuations upon which the municipal
and other tax rates are computed and extended, and thereafter no taxes from
the housing development site shall be deposited in the special tax increment
financing account.
   (f) Notwithstanding any charter provision or other provision, all property
taxes assessed within a housing development site shall be subject to the
provisions of this section. Special assessments levied under chapter 76A or 87
of this title or under a municipal charter shall not be considered property taxes
for the purpose of this section if the proceeds are used exclusively for
operating expenses related to properties within the housing development site
and not for improvements within the housing development site.
§ 1910c. USE OF TAX INCREMENT; RETENTION PERIOD
   (a) Uses of tax increments. A municipality may apply tax increments
retained pursuant to this subchapter to debt incurred within the period
permitted under section 1910a of this subchapter, to related costs, and to the
direct payment of the cost of a housing infrastructure project. A municipality
may provide tax increment to a sponsor only upon receipt of an invoice for
payment of the financing, and the sponsor shall confirm to the municipality
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once the tax increment has been applied to the financing. Any direct payment
shall be subject to the same public vote provisions of section 1910a of this
subchapter as apply to debt.
   (b) Education property tax increment.
      (1) For a housing infrastructure project that does not satisfy the
affordability criterion of section 1910 of this subchapter, up to 75 percent of
the education property tax increment may be retained for up to 20 years,
beginning the first year in which debt is incurred for the housing infrastructure
project.
      (2) For a housing infrastructure project that satisfies the affordability
criterion of section 1910 of this subchapter, up to 85 percent of the education
property tax increment may be retained for up to 20 years, beginning the first
year in which debt is incurred for the housing infrastructure project.
      (3) Upon incurring the first debt, a municipality shall notify the
Department of Taxes and the Vermont Economic Progress Council of the
beginning of the retention period of the education property tax increment.
   (c) Municipal property tax increment. Not less than 85 percent of the
municipal property tax increment may be retained, beginning the first year in
which debt is incurred for the housing infrastructure project.
   (d) Excess tax increment.
      (1) Of the municipal and education property tax increments received in
any tax year that exceed the amounts committed for the payment of the
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financing and related costs for a housing infrastructure project, equal portions
of each increment may be retained for the following purposes:
           (A) to prepay principal and interest on the financing;
           (B) to place in a special tax increment financing account required
pursuant to subsection 1910b(e) of this subchapter and use for future financing
payments; or
           (C) to use for defeasance of the financing.
      (2) Any remaining portion of the excess education property tax
increment shall be distributed to the Education Fund. Any remaining portion
of the excess municipal property tax increment shall be distributed to the city,
town, or village budget in the proportion that each budget bears to the
combined total of the budgets unless otherwise negotiated by the city, town, or
village.
   (e) Adjustment of percentage. During the 10th year following the creation
of a housing development site, the municipality shall submit an updated tax
increment financing plan to the Vermont Economic Progress Council that shall
include adjustments and updates of appropriate data and information sufficient
for the Vermont Economic Progress Council to determine, based on tax
increment financing debt actually incurred and the history of increment
generated during the first 10 years, whether the percentages approved under
this section should be continued or adjusted to a lower percentage to be
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retained for the remaining duration of the retention period and still provide
sufficient municipal and education increment to service the remaining debt.
§ 1910d. INFORMATION REPORTING
   (a) A municipality with an active housing infrastructure project shall:
      (1) develop a system, segregated for the housing infrastructure project,
to identify, collect, and maintain all data and information necessary to fulfill
the reporting requirements of this section;
      (2) provide timely notification to the Department of Taxes and the
Vermont Economic Progress Council of any housing infrastructure project
debt, public vote, or vote by the municipal legislative body immediately
following the debt incurrence or public vote on a form prescribed by the
Council, including copies of public notices, agendas, minutes, vote tally, and a
copy of the information provided to the public pursuant to subsection 1910a(e)
of this subchapter; and
      (3) annually on or before February 15, submit on a form prescribed by
the Vermont Economic Progress Council an annual report to the Council and
the Department of Taxes, including the information required by subdivision (2)
of this subsection if not previously submitted, the information required for
annual audit under section 1910e of this subchapter, and any information
required by the Council or the Department of Taxes for the report required
pursuant to subsection (b) of this section.
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   (b) Annually on or before April 1, the Vermont Economic Progress Council
and the Department of Taxes shall submit a report to the Senate Committees on
Economic Development, Housing and General Affairs and on Finance and the
House Committees on Commerce and Economic Development, on General and
Housing, and on Ways and Means that provides the aggregate lifetime
education property tax increment retention approved that year, describes
common reasons applicants to the Community and Housing Infrastructure
Program fail to secure approval for tax increment financing, and includes for
each housing infrastructure project approved pursuant to this subchapter the
following:
      (1) the date of approval;
      (2) a description of the housing infrastructure project;
      (3) the original taxable value of the housing development site;
      (4) the scope and value of projected and actual improvements and
developments in the housing development site, including the number of
housing units created;
      (5) the sale prices for initial offerings of any housing units;
      (6) the number and types of housing units for which a permit is being
pursued under 10 V.S.A. chapter 151 (State land use and development plans)
and, for each applicable housing development, the current stage of the
permitting process;
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      (7) projected and actual incremental revenue amounts;
      (8) the allocation of incremental revenue, including the amount
allocated to related costs;
      (9) projected and actual financing; and
      (10) an evaluation of the amount of public funds flowing to private
ownership or usage.
   (c) On or before January 15, 2035, the Vermont Economic Progress
Council shall submit a report to the Senate Committees on Economic
Development, Housing and General Affairs and on Finance and the House
Committees on Commerce and Economic Development, on General and
Housing, and on Ways and Means evaluating the success of the Community
and Housing Infrastructure Program in achieving its purpose, as stated in
section 1907 of this chapter, including by identifying the amount and kinds of
housing produced through the Program and by determining whether housing
development pursued through the Program meets the project criteria of section
1910 of this chapter.
§ 1910e. AUDITING
   Annually on or before April 1 until the year following the end of the period
for retention of education property tax increment, a municipality with a
housing infrastructure project approved under this subchapter shall ensure that
the special tax increment financing account required by section 1910b of this
subchapter is subject to the annual audit prescribed in section 1681 or 1690 of
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this title and submit a copy to the Vermont Economic Progress Council. If an
account is subject only to the audit under section 1681 of this title, the Council
shall ensure a process is in place to subject the account to an independent audit.
Procedures for the audit must include verification of the original taxable value
and annual and total municipal and education property tax increments
generated, expenditures for financing and related costs, and current balance.
§ 1910f. RULEMAKING; GUIDANCE
   (a) Authority to adopt rules and guidance.
      (1) The Vermont Economic Progress Council may adopt rules that are
reasonably necessary to implement this subchapter.
      (2) The Vermont Economic Progress Council shall issue guidance to
implement this subchapter on or before November 15, 2025. Upon issuance,
the Vermont Economic Progress Council shall publicly post and submit to the
Senate Committees on Economic Development, Housing and General Affairs
and on Finance and the House Committees on Commerce and Economic
Development, on General and Housing, and on Ways and Means any guidance
documents.
   (b) Authority to issue decisions.
      (1) The Secretary of Commerce and Community Development, after
reasonable notice to a municipality and an opportunity for a hearing, may issue
decisions to a municipality on questions and inquiries concerning the
administration of housing infrastructure projects, statutes, rules,
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noncompliance with this subchapter, and any instances of noncompliance
identified in audit reports conducted pursuant to section 1910e of this
subchapter.
      (2) The Vermont Economic Progress Council shall prepare
recommendations for the Secretary of Commerce and Community
Development prior to any decision issued pursuant to subsection (b) of this
section. The Council may prepare recommendations in consultation with the
Commissioner of Taxes, the Attorney General, and the State Treasurer. In
preparing recommendations, the Council shall provide a municipality with a
reasonable opportunity to submit written information in support of its position.
      (3) The Secretary of Commerce and Community Development shall
review the recommendations of the Council and issue a final written decision
on each matter within 60 days following receipt of the recommendations. The
Secretary may permit an appeal to be taken by any party to a Superior Court
for determination of questions of law in the same manner as the Supreme Court
may by rule provide for appeals before final judgment from a Superior Court
before issuing a final decision.
   (c) Remedy for noncompliance. If the Secretary issues a decision under
subsection (b) of this section that includes a finding of noncompliance and that
noncompliance has resulted in the improper reduction in the amount due the
Education Fund, the Secretary, unless and until the Secretary is satisfied that
there is no longer any such failure to comply, shall request that the State
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Treasurer bill the municipality for the total identified underpayment. The
amount of the underpayment shall be due from the municipality upon receipt
of the bill. If the municipality does not pay the underpayment amount within
60 days, the amount may be withheld from any funds otherwise payable by the
State to the municipality or a school district in the municipality or of which the
municipality is a member.
   (d) Referral; Attorney General. In lieu of or in addition to any action
authorized in subsection (c) of this section, the Secretary of Commerce and
Community Development or the State Treasurer may refer the matter to the
Office of the Attorney General with a recommendation that an appropriate civil
action be initiated.
   (e) Appeal; hearing officer. A hearing that is held pursuant to this section
shall be subject to the provisions of 3 V.S.A. chapter 25 relating to contested
cases. The hearing shall be conducted by the Secretary or by a hearing officer
appointed by the Secretary. If a hearing is conducted by a hearing officer, the
hearing officer shall have all authority to conduct the hearing that is provided
for in the applicable contested case provisions of 3 V.S.A. chapter 25,
including issuing findings of fact, hearing evidence, and compelling, by
subpoena, the attendance and testimony of witnesses.
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Sec. 21. 32 V.S.A. § 3325 is amended to read:
§ 3325. VERMONT ECONOMIC PROGRESS COUNCIL
   (a) Creation. The Vermont Economic Progress Council is created to
exercise the authority and perform the duties assigned to it, including its
authority and duties relating to:
      (1) the Vermont Employment Growth Incentive Program pursuant to
subchapter 2 of this chapter; and
      (2) tax increment financing districts pursuant to 24 V.S.A. chapter 53,
subchapter 5 and section 5404a of this title; and
      (3) the Community and Housing Infrastructure Program pursuant to 24
V.S.A. chapter 53, subchapter 7.
   (b) Membership.
      (1) The Council shall have 11 voting members:
         (A) nine residents of the State appointed by the Governor with the
advice and consent of the Senate who are knowledgeable and experienced in
the subjects of community development and planning, education funding
requirements, economic development, State fiscal affairs, property taxation, or
entrepreneurial ventures and represent diverse geographical areas of the State
and municipalities of various sizes;
         (B) one member of the Vermont House of Representatives appointed
by the Speaker of the House; and
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         (C) one member of the Vermont Senate appointed by the Senate
Committee on Committees.
      (2)(A) The Council shall have two regional members from each region
of the State, one appointed by the regional development corporation of the
region and one appointed by the regional planning commission of the region.
         (B) A regional member shall be a nonvoting member and shall serve
during consideration by the Council of an application from his or her the
member’s region.
      (3) Exclusively for purposes of reviewing and approving housing
infrastructure project applications under the Community and Housing
Infrastructure Program, the Council shall additionally have three nonvoting
members:
         (A) the Executive Director of the Vermont Housing Finance Agency
or designee;
         (B) the Executive Director of the Vermont Housing and Conservation
Board or designee; and
         (C) the Commissioner of Housing and Community Development or
designee.
                                     ***
   (g) Decisions not subject to review. A decision of the Council to approve
or deny an application under subchapter 2 of this chapter, or to approve or
deny a tax increment financing district pursuant to 24 V.S.A. chapter 53,
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subchapter 5 and section 5404a of this title, or to approve or deny a housing
infrastructure project pursuant to 24 V.S.A. chapter 53, subchapter 7 is an
administrative decision that is not subject to the contested case hearing
requirements under 3 V.S.A. chapter 25 and is not subject to judicial review.
Sec. 22. COMMUNITY AND HOUSING INFRASTRUCTURE
         PROGRAM; VERMONT ECONOMIC PROGRESS COUNCIL;
         HOUSING DEVELOPMENT SITE; REPORT
   On or before December 15, 2025, the Vermont Economic Progress Council
shall report to the Senate Committees on Economic Development, Housing and
General Affairs and on Finance and the House Committees on Commerce and
Economic Development, on General and Housing, and on Ways and Means on
considerations for amending the definition of “housing development site”
under 24 V.S.A. §§ 1906 and 1908 to support the Community and Housing
Infrastructure Program, including a recommendation on whether to include
immediately contiguous parcels in the definition.
               * * * Smoke and Carbon Monoxide Alarms * * *
Sec. 23. 9 V.S.A. chapter 77 is amended to read:
     CHAPTER 77. SMOKE DETECTORS ALARMS AND CARBON
                    MONOXIDE DETECTORS ALARMS
§ 2881. DEFINITIONS
   As used in this chapter:
                                      ***
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      (2) “Smoke detector alarm” means a device that detects visible or
invisible particles of combustion and sounds a warning alarm, is operated from
a power supply within the unit or wired to it from an outside source, and is
approved or listed for the purpose by Underwriters Laboratory or by another
nationally recognized independent testing laboratory.
      (3) “Carbon monoxide detector alarm” means a device with an assembly
that incorporates a sensor control component and an alarm notification that
detects elevations in carbon monoxide levels and sounds a warning alarm, is
operated from a power supply within the unit or wired to it from an outside
source, and is approved or listed for the purpose by Underwriters Laboratory or
by another nationally recognized independent testing laboratory.
§ 2882. INSTALLATION
   (a) A person who constructs a single-family dwelling shall install
photoelectric-only-type photoelectric-type or UL 217 compliant smoke
detectors alarms in the vicinity of any bedrooms and on each level of the
dwelling, and one or more carbon monoxide detectors alarms in the vicinity of
any bedrooms in the dwelling in accordance with the manufacturer’s
instructions. In a dwelling provided with electrical power, detectors alarms
shall be powered by the electrical service in the building and by battery.
   (b) Any single-family dwelling when transferred by sale or exchange shall
contain photoelectric-only-type photoelectric-type or UL 217 compliant smoke
detectors alarms in the vicinity of any bedrooms and on each level of the
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dwelling installed in accordance with the manufacturer’s instructions and one
or more carbon monoxide detectors alarms installed in accordance with the
manufacturer’s instructions. A single-family dwelling constructed before
January 1, 1994 may contain smoke detectors alarms powered by the electrical
service in the building or by battery, or by a combination of both. In a single-
family dwelling newly constructed after January 1, 1994 that is provided with
electrical power, smoke detectors alarms shall be powered by the electrical
service in the building and by battery. In a single-family dwelling newly
constructed after July 1, 2005 that is provided with electrical power, carbon
monoxide detectors alarms shall be powered by the electrical service in the
building and by battery.
   (c) Nothing in this section shall require an owner or occupant of a single-
family dwelling to maintain or use a smoke detector alarm or a carbon
monoxide detector alarm after installation.
§ 2883. REQUIREMENTS FOR TRANSFER OF DWELLING
   (a) The seller of a single-family dwelling, including one constructed for
first occupancy, whether the transfer is by sale or exchange, shall certify to the
buyer at the closing of the transaction that the dwelling is provided with
photoelectric-only-type photoelectric-type or UL 217 compliant smoke
detectors alarms and carbon monoxide detectors alarms in accordance with this
chapter. This certification shall be signed and dated by the seller.
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   (b) If the buyer notifies the seller within 10 days by certified mail from the
date of conveyance of the dwelling that the dwelling lacks any photoelectric-
only-type photoelectric-type or UL 217 compliant smoke detectors alarms, or
any carbon monoxide detectors alarms, or that any detector alarm is not
operable, the seller shall comply with this chapter within 10 days after
notification.
                                       ***
Sec. 24. 20 V.S.A. § 2731 is amended to read:
§ 2731. RULES; INSPECTIONS; VARIANCES
                                       ***
   (j) Detectors Alarms. Rules adopted under this section shall require that
information written, approved, and distributed by the Commissioner on the
type, placement, and installation of photoelectric photoelectric-type or UL 217
compliant smoke detectors alarms and carbon monoxide detectors alarms be
conspicuously posted in the retail sales area where the detectors alarms are
sold.
                                       ***
                           * * * Effective Dates * * *
Sec. 25. EFFECTIVE DATES
   This act shall take effect on July 1, 2025, except that Sec. 4 (Rental Housing
Revolving Loan Program), Sec. 7 (repeal; Act 181 prospective landlord
certificate changes), and this section shall take effect on passage.
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Date Governor signed bill: June 12, 2025
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