H 938

No. 143  Page 1 of 40
2026
No. 143. An act relating to establishing the Vermont Homelessness
Response Continuum.
                                    (H.938)
It is hereby enacted by the General Assembly of the State of Vermont:
             * * * Findings, Legislative Intent, and Purpose * * *
Sec. 1. FINDINGS
  The General Assembly finds that:
      (1) although an imperfect tool for measuring the true number of
unhoused Vermonters, the Vermont Homeless Management Information
System as of December 2025 indicated that there were 4,022 individuals who
were homeless in the State, 863 of whom were children under 18 years of age;
and
      (2) the 2024 Vermont Housing Needs Assessment notes that of the
36,000 primary homes needed in Vermont between 2025 and 2029, the number
needed to address homelessness is 3,295.
Sec. 2. LEGISLATIVE INTENT
  It is the intent of the General Assembly that:
      (1) unsheltered homelessness be eliminated and that homelessness in
Vermont be rare, brief, and nonrecurring;
      (2) Vermont reduce reliance on the inefficient use of hotel and motel
rooms for emergency housing;
                                                                VT LEG #390226 v.1
No. 143  Page 2 of 40
2026
      (3) utilization of an emergency housing benefit to access hotels and
motels through the General Assistance program end and be replaced by a
continuum of services; and
      (4) a continuum of supports and services be available and administered
flexibly in a manner that:
          (A) provides a stable pathway to permanent housing;
          (B) meets the specific needs of households experiencing
homelessness; and
          (C) supports community partners.
Sec. 3. PURPOSE
   It is the purpose of this act to:
      (1) establish a continuum of supports and services for households who
are experiencing homelessness or who are at risk of experiencing
homelessness;
      (2) ensure that tailored, temporary emergency housing assistance is
available to Vermonters in a manner that encourages efficient and accountable
use of taxpayer funds;
      (3) support self-sufficiency and reduce returns to homelessness by
developing personalized housing plans with required participation by
households;
      (4) establish clear eligibility criteria and require active household
participation;
                                                                   VT LEG #390226 v.1
No. 143  Page 3 of 40
2026
      (5) expand the use of alternative emergency housing models in
partnership with municipalities, nonprofit community-based providers, and
private landlords;
      (6) integrate supportive services to assist households to achieve
permanent housing stability;
      (7) establish transparent accountability measures, reporting
requirements, and oversight mechanisms;
      (8) increase Program efficiency and promote maximum flexibility in
administering services and supports in the continuum;
      (9) empower local communities to administer emergency housing
services with maximum flexibility; and
      (10) create a diversified system of emergency housing options,
including shelters, specialized shelters, shared housing arrangements, host-
home models, master-lease units, and rapid rehousing placements, that provide
cost-effective, sustainable, and supportive outcomes to households.
   * * * Creation of the Vermont Homelessness Response Continuum * * *
Sec. 4. 33 V.S.A. chapter 22 is added to read:
CHAPTER 22. VERMONT HOMELESSNESS RESPONSE CONTINUUM
§ 2201. DEFINITIONS
   As used in this chapter:
      (1) “Alternative housing options” means housing options including
shelters, specialized shelters, transitional housing, recovery residences, shared
                                                                   VT LEG #390226 v.1
No. 143  Page 4 of 40
2026
housing arrangements, host-home models, master-lease units, and rapid
rehousing placements.
      (2) “Applicant” means a household that applies for emergency housing
assistance.
      (3) “At risk of homelessness” means precariously housed without
sufficient income, resources, or support to prevent homelessness.
      (4) “Case management services” means individualized supportive
services.
      (5) “Coordinated entry” means a process that standardizes the way
households at risk of homelessness or experiencing homelessness access and
are assessed for and referred to the housing and services that a household needs
for housing stability.
      (6) “Department” means the Department for Children and Families.
      (7) “Disability” means a physical, sensory, cognitive, developmental, or
mental health condition or substance use disorder that substantially limits one
or more major life activities, or that requires ongoing support, accommodation,
or treatment to maintain an individual’s health, safety, or independence. The
term includes chronic or episodic conditions that significantly impact daily
functioning, regardless of whether the individual is receiving, or is eligible to
receive, federal disability benefits.
      (8) “Diversion” means a strategy aimed at preventing homelessness by
helping households find immediate alternative housing options instead of
                                                                    VT LEG #390226 v.1
No. 143  Page 5 of 40
2026
entering shelters. Diversion focuses on addressing the needs of those who
have recently lost their housing.
      (9) “Eligible household” means a household that is homeless and is
physically present and intends to reside in Vermont as evidenced by active
participation in a housing, employment, or other Agency of Human Services–
recognized plan.
      (10) “Emergency cold-weather shelter” means publicly funded shelter
beds made available to households during periods when the National Weather
Service is forecasting temperatures at or below 10 degrees Fahrenheit
including windchill for the majority of the State.
      (11) “Emergency housing” means temporary shelter, lodging, or other
housing support, or related services provided to eligible households to protect
the health, safety, and welfare of an eligible household when no safe housing
option is immediately available.
      (12) “Highly structured shelter” means a shelter that provides
programming that emphasizes case management, housing stability,
employment, education, or treatment services, as well as other services as
appropriate, in a manner that accommodates an eligible household’s disability,
if any.
      (13) “Homeless” means:
          (A) lacking a fixed, regular, and adequate nighttime residence;
          (B) facing imminent loss of a primary nighttime residence;
                                                                  VT LEG #390226 v.1
No. 143  Page 6 of 40
2026
          (C) fleeing or attempting to flee domestic violence, dating violence,
sexual assault, stalking, and other dangerous or life-threatening conditions that
relate to violence against a household or household member that either takes
place in the primary nighttime residence or causes the household or household
member to be afraid to return to the primary nighttime residence;
          (D) residing in a place not meant for human habitation, such as cars,
parks, abandoned buildings, or streets; or
          (E) otherwise defined as homeless under federal law.
      (14) “Household” means an individual or group of individuals, with or
without children, including individuals who reside together as one economic
unit, who are married, parties to a civil union, or unmarried.
      (15) “Low-barrier shelter” means a shelter that minimizes barriers to
entry by reducing the rules and programmatic requirements found in highly
structured shelters, while still providing case management and other housing
support services in a manner that accommodates an eligible household’s
disability, if any.
      (16) “Minor child” means an individual under 18 years of age.
      (17) “Office” means the Office of Economic Opportunity.
      (18) “Permanent supportive housing” means long-term housing with
wraparound services for individuals with complex health and social needs.
                                                                  VT LEG #390226 v.1
No. 143  Page 7 of 40
2026
      (19) “Prevention” means services intended to prevent a household from
becoming homeless, including housing relocation or stabilization services or
short-term rental assistance, including rental arrearage.
      (20) “Program” means the Vermont Homelessness Response
Continuum.
      (21) “Rapid rehousing” means short- to medium-term rental assistance
and supportive services aimed at assisting a household to quickly exit
homelessness.
      (22) “Shelter” means a facility that meets the Department’s shelter
standards.
      (23) “Specialized shelter” means a facility that meets the Department’s
shelter standards and applicable standards for the delivery of additional
services, including health care, mental health services, or services related to
substance use disorder.
      (24) “Supportive services” means individualized supports that assist a
household in obtaining and maintaining housing, including:
          (A) intake assessments and services for diversion from homelessness;
          (B) household needs assessments;
          (C) case management;
          (D) individualized household plans to address identified needs;
          (E) housing navigation services;
                                                                   VT LEG #390226 v.1
No. 143  Page 8 of 40
2026
          (F) assistance obtaining and retaining housing, including financial
assistance;
          (G) landlord-tenant outreach, education, and conflict resolution;
          (H) navigation to other services and supports as identified in the
household’s housing plan, including economic benefits, peer-supported
services, job training and employment services, services related to disability
and independent living advocacy, and referral to health care assistance,
including treatment for mental health conditions and substance use disorder;
          (I) progress monitoring of interventions; and
          (J) services to ensure continuity after a permanent placement.
      (25) “Unsheltered homelessness” means sleeping in a location not
designed for or ordinarily used as a regular sleeping accommodation, including
cars, parks, abandoned buildings, or streets.
§ 2202. ESTABLISHMENT; VERMONT HOMELESSNESS RESPONSE
          CONTINUUM
   (a) The Vermont Homelessness Response Continuum is established to
create an array of services that prevent and address homelessness in Vermont.
The Program shall be administered by the Department’s Office of Economic
Opportunity.
   (b) The Office shall maintain a continuum of services that is flexible,
housing focused, and designed to prevent homelessness whenever possible.
                                                                  VT LEG #390226 v.1
No. 143  Page 9 of 40
2026
The continuum shall prioritize early intervention, rapid resolution of housing
crises, and equitable access to emergency and permanent housing.
   (c) The Program shall:
      (1) provide temporary emergency housing to eligible households
experiencing homelessness or at imminent risk of homelessness;
      (2) reduce reliance on hotels and motels for emergency housing
assistance;
      (3) expand the use of alternative housing options in partnership with
community organizations, municipalities, and private landlords;
      (4) integrate case management and individualized housing plans into all
emergency housing placements; and
      (5) ensure accountability, transparency, and cost efficiency in the use of
public funds.
   (d) All funding opportunities available under the Program shall be open to
any entity or community partner, including those that did not previously
receive funding.
§ 2203. PROGRAM COMPONENTS
   (a) The continuum of services shall consist of the following:
      (1) level 1: prevention and diversion services;
      (2) level 2: shelter services:
          (A) level 2A: highly structured shelter services; and
          (B) level 2B: low-barrier shelter services;
                                                                   VT LEG #390226 v.1
No. 143  Page 10 of 40
2026
      (3) level 3: specialized shelter services;
      (4) level 4: hotels and motels;
      (5) permanent supportive housing services; and
      (6) other emergency housing services.
   (b) The Office shall address each of the services in subsection (a) of this
section by separate line items in its budget. The Department shall be
responsible for any transfers to other Agency of Human Services departments
necessary to implement the services listed in subsection (a) of this section.
The Department and other departments within the Agency of Human Services
shall maximize federal receipts, as applicable, for services listed in subsection
(a) of this section.
   (c) Upon assessing a household’s needs, the Office or community partners
shall offer to place the household in the appropriate level of care to address the
household’s specific needs if capacity, staffing, and geographic accessibility
are available.
§ 2204. PREVENTION AND DIVERSION SERVICES
   Level 1: prevention and diversion services.
      (1) Prevention and diversion services shall function as the primary entry
point to the Vermont Homelessness Response Continuum for all households,
although connection may be made at any level. The Office shall ensure that
prevention and diversion services are provided through an agreement with one
or more community partners in each region of the State in a manner that
                                                                   VT LEG #390226 v.1
No. 143  Page 11 of 40
2026
accommodates an eligible household’s disability, if any. All households, upon
request for assistance, shall receive a brief, standardized initial prevention and
diversion assessment to identify safe alternatives to homelessness and resolve
immediate housing barriers.
      (2) Prevention includes activities to avert entry into homelessness.
Diversion includes problem-solving interventions and supports that safely
resolve a housing crisis without the use of shelter or hotel or motel placements.
      (3) Funds administered for prevention and diversion services shall have
maximum flexibility.
§ 2205. SHELTER SERVICES
   (a) Level 2A: highly structured shelter services.
      (1) To the extent funds are appropriated for this purpose, the Office shall
determine the need for highly structured shelter services and develop sufficient
highly structured shelter beds to address that need. The Department through
the Office shall enter into agreements for a period of not less than two years at
a time with community partners for the provision of highly structured shelter
services.
      (2) Highly structured shelters shall offer programming that emphasizes
case management, housing stability, employment, education, or treatment
services, as well as other services as appropriate, in a manner that
accommodates an eligible household’s disability, if any. Eligible households
                                                                    VT LEG #390226 v.1
No. 143  Page 12 of 40
2026
receiving highly structured shelter services shall participate in case
management and other services to the extent of their ability.
      (3) The Office shall ensure that highly structured shelter services meet
the Department of Public Safety, Vermont Fire and Building Safety Code
(CVR 28-070-001).
      (4) If an eligible household’s needs cannot be met with the level 1
prevention and diversion services in section 2204 of this chapter, highly
structured shelter services are the preferred initial placement if capacity,
staffing, and geographic accessibility are available.
   (b) Level 2B: low-barrier shelter services.
      (1) To the extent funds are appropriated for this purpose, the Office shall
determine the need for low-barrier shelter services and develop sufficient low-
barrier shelters to address that need. The Department through the Office shall
enter into agreements for a period of not less than two years at a time with
community partners for the provision of low-barrier shelter services.
      (2) Low-barrier shelters shall minimize barriers to entry by reducing the
rules and programmatic requirements found in highly structured shelters, while
still providing case management and other housing support services in a
manner that accommodates an eligible household’s disability, if any. Stays in
low-barrier shelters shall be time limited, and eligible households shall be
transitioned to highly structured shelter services or permanent housing as soon
as feasible.
                                                                    VT LEG #390226 v.1
No. 143  Page 13 of 40
2026
      (3) The Office shall ensure that low-barrier shelter services meet the
Department of Public Safety, Vermont Fire and Building Safety Code (CVR
28-070-001).
      (4) If an eligible household’s needs cannot be met with the level 1
prevention and diversion services in section 2204 of this chapter or the highly
structured shelter services in subsection (a) of this section, low-barrier shelter
services may be utilized if capacity, staffing, and geographic accessibility are
available.
§ 2206. SPECIALIZED SHELTER SERVICES
   Level 3: specialized shelter services.
      (1) To the extent funds are appropriated for this purpose:
          (A) the relevant Agency of Human Services departments shall
determine the need for and, to the extent funds permit, develop specialized
shelter services that comply with the Department of Public Safety, Vermont
Fire and Building Safety Code (CVR 28-070-001), as well as any other
applicable standards relevant to the specialty population; and
          (B) the relevant Agency of Human Services departments shall enter
into agreements for a period of not less than two years at a time with
community partners for the provision of specialized shelter services.
      (2) Specialized service shelters shall offer services delivered in a highly
structured shelter as well as additional specialty services, such as services for
substance use disorder and mental and physical health conditions. Eligible
                                                                    VT LEG #390226 v.1
No. 143  Page 14 of 40
2026
households receiving specialized shelter services shall participate in case
management and other services to the extent of their ability.
         (3) If an eligible household’s needs cannot be met with the level 1
prevention and diversion services in section 2204 of this chapter or the level 2
shelter services in section 2205 of this chapter, a specialized service shelter
may be utilized if capacity, staffing, and geographic accessibility are available
and the eligible household requires specialized services.
§ 2207. HOTELS AND MOTELS
   Level 4: hotels and motels.
         (1) It is the intent of the General Assembly to decrease reliance on hotel
and motel rooms. However, until sufficient permanent affordable housing or
shelter services are available, the use of hotel and motel services shall be
permitted.
         (2) If a hotel or motel is utilized pursuant to this section, the Department
shall:
            (A) enter into an agreement with one or more community partners to
provide relevant supportive services to eligible households;
            (B) permit a population-specific placement to the extent certain
populations are not isolated from the wider community served through the
Program;
            (C) propose hotel and motel rates as part of its budget presentation
for the General Assembly’s consideration;
                                                                      VT LEG #390226 v.1
No. 143  Page 15 of 40
2026
          (D) use only hotel and motel rates established by the General
Assembly;
          (E) enter into agreements for the use of blocks of hotel and motel
rooms and negotiate conditions of use for those blocks, including access to
providers of case management and other supportive services, with space to
provide services as negotiated; and
          (F) ensure that services are not provided pursuant to this section on a
night-by-night basis.
      (3) If a hotel or motel is utilized pursuant to this section, the eligible
household shall participate in case management services, planning for housing
stability, and other services to the extent of the eligible household’s ability.
      (4) A hotel or motel used pursuant to this chapter shall comply with
Program rules and the following rules:
          (A) Department of Health, Licensed Lodging Establishment Rule
(CVR 13-140-023); and
          (B) Department of Public Safety, Vermont Fire and Building Safety
Code (CVR 28-070-001).
      (5)(A) To the extent funds are appropriated for this purpose:
             (i) between April 1 and November 30 of each year, the utilization
of hotel and motel rooms pursuant to this section shall be capped at 700 rooms
per night; and
                                                                     VT LEG #390226 v.1
No. 143  Page 16 of 40
2026
             (ii) between December 1 and March 31 of each year, the
utilization of hotel and motel rooms pursuant to this section shall be capped at
1,000 rooms per night.
          (B) Hotel and motel rooms utilized by individuals served under
section 602 of this title shall not be included in the room caps provided in this
subdivision (5).
      (6) If an eligible household’s needs cannot be met by levels 1–3 of the
Program as described in sections 2204–2206 of this chapter, the Office may
utilize hotels and motels if capacity, staffing, and geographic accessibility are
available.
§ 2208. PERMANENT SUPPORTIVE HOUSING SERVICES
   The Agency of Human Services’ departments or their community partners
shall offer to provide permanent supportive housing services to an eligible
household participating in the Program. Permanent supportive housing
services provided pursuant to this section shall combine long-term,
community-based rental assistance with voluntary, flexible supportive services,
such as family supportive housing and other supportive housing services
funded in whole or in part by Medicaid, if the household and services are
eligible for Medicaid. An eligible household receiving permanent supportive
housing services shall participate in case management, planning for housing
stability, and other services to the extent of the eligible household’s ability.
                                                                     VT LEG #390226 v.1
No. 143  Page 17 of 40
2026
Permanent supportive housing services may be utilized by an eligible
household for as long as the eligible household’s plan indicates it is necessary.
§ 2209. OTHER EMERGENCY HOUSING SERVICES
   (a) Municipal supports. The Department through the Office shall provide
grants to municipalities in areas of the State with a high volume of unsheltered
homelessness, including municipalities underserved by traditional funding
sources. An eligible municipality may submit to the Office a grant application
containing the estimated cost of the municipality’s proposal and other
identified funding sources. The use of grant funding awarded pursuant to this
subsection is at the discretion of the municipality and shall include the
provision of basic life-sustaining shelter when the National Weather Service
declares a cold weather advisory. Shelter provided pursuant to this subsection
shall be time limited, shall not require a coordinated entry assessment or case
management, and shall have minimal data reporting requirements.
   (b) Emergency cold-weather shelters. Emergency cold-weather shelters
shall be managed through an agreement between the Office and one or more
community partners to provide overnight, low-barrier shelter when weather
conditions warrant. The Office and community partners shall ensure equitable
access to emergency cold-weather shelters for communities with a high
number of households experiencing unsheltered homelessness. Shelter
provided pursuant to this subsection shall be time limited, shall not require a
                                                                   VT LEG #390226 v.1
No. 143  Page 18 of 40
2026
coordinated entry assessment or case management, and shall have minimal
data reporting requirements.
   (c) Alternative Agency of Human Services housing solutions. The Agency
of Human Services, through its various departments, provides households with
other time-limited or permanent housing. Such services include recovery
housing, various residential supports for individuals with intellectual or
developmental disabilities, home care services for older Vermonters and
individuals with physical disabilities, transitional housing for individuals
exiting correctional custody, and residential options for individuals with
mental health challenges. Emergency housing provided through the Program
is not intended to take the place of any other Agency of Human Services time-
limited or permanent housing.
§ 2210. HOUSEHOLD RESPONSIBILITIES
   (a) Within the funds appropriated for this purpose, a household shall
qualify for services under the Program if the household:
      (1) is physically present and intends to reside in Vermont as evidenced
by active participation in a housing, employment, or other Agency of Human
Services–recognized plan;
      (2) agrees to a coordinated entry assessment that prioritizes the
household for permanent housing, unless explicitly exempt under this chapter;
                                                                   VT LEG #390226 v.1
No. 143  Page 19 of 40
2026
      (3) agrees to engage with a case manager to develop a housing plan,
unless explicitly exempt from case management requirements under this
chapter or by federal law; and
      (4) abides by Program rules and refrains from misconduct.
   (b)(1) The Office or a community partner shall provide clear written notice
to all applicants regarding penalties for fraud at the time of application.
      (2) The Office or a community partner shall not impose a penalty upon a
household for a good faith, immaterial error that was corrected upon notice
within a reasonable period of time.
      (3) A household that knowingly provides false, misleading, or
incomplete information regarding residency, disability status, household
composition, or other eligibility criteria shall be subject to termination of
services within 30 days after receiving written notice from the Department or a
community partner.
      (4) Pending the outcome of a relevant Human Services Board hearing,
the Office may refer cases of suspected fraud to the Office of the Attorney
General or a State’s Attorney for investigation and prosecution under
applicable State law.
   (c) A household may be terminated from the Program for repeatedly
refusing suitable placements following documented suitability assessments and
reasonable accommodations.
                                                                    VT LEG #390226 v.1
No. 143  Page 20 of 40
2026
     (d) A member or members of an eligible household may be subject to
immediate termination of services as necessary for the safety of others if the
member or members are engaged in:
        (1) criminal activity; or
        (2) misconduct that is not related to a disability or to victimization
related to abuse, sexual assault, or stalking.
     (e) As used in this section, “misconduct” means documented behaviors that
materially endanger the safety of others, involve the intentional destruction of
property, or constitute illegal activity.
§ 2211. PRIORITIZATION
     (a) The Office, either directly or through community partners, shall
prioritize services within the funds appropriated for this purpose to eligible
households who are homeless or at risk of becoming homeless and have a
member who:
        (1) is 65 years of age or older;
        (2) has a disability;
        (3) is a minor child;
        (4) is pregnant;
        (5) is experiencing domestic violence, dating violence, sexual assault,
stalking, human trafficking, or other dangerous or life-threatening conditions;
or
                                                                     VT LEG #390226 v.1
No. 143  Page 21 of 40
2026
      (6) is under court-ordered eviction or constructive eviction due to
circumstances over which the household has no control.
   (b)(1) Proof of an eligible household’s disability shall be verified by:
          (A) a health care provider licensed or certified and practicing in
Vermont;
          (B) a determination or certification from a State- or federally
recognized agency or program that provides services to individuals with
disabilities; or
          (C) self-attestation by the eligible household, subject to verification
by the State or community partner within 30 days when other documentation is
not reasonably available at the time of application.
      (2) The presence of an eligible household member’s disability shall be
verified by the Office or a community partner during the household’s initial
application process and shall be redetermined annually if the household is still
receiving services. An eligible household with a member who has a lifelong
disability, such as an intellectual or developmental disability, shall not be
required to have the disability redetermined.
   (c) The Office and community partners shall comply with the Americans
with Disabilities Act, 42 U.S.C. §§ 12101–12213, and section 504 of the
Rehabilitation Act of 1973, 29 U.S.C. § 794, for the purposes of providing
reasonable modifications, effective communication, and accessible placements.
Program rules and case management requirements shall be reasonably
                                                                    VT LEG #390226 v.1
No. 143  Page 22 of 40
2026
modified, including with the use of plain language, as necessary to avoid
discrimination against eligible households with a member who has a disability.
§ 2212. TIME LIMITS FOR PROGRAM PARTICIPATION
   (a) Time limits for Program participation shall be governed by the level of
service provided as follows:
      (1) Level 1: Any temporary housing that is not provided in the form of
temporary rental assistance through the Program’s prevention and diversion
services shall not exceed 30 days per rolling 12-month period.
      (2) Level 2: The Office, in collaboration with shelter providers, shall
establish the maximum length of stay in highly structured shelters and low-
barrier shelters in rule or shelter standards.
      (3) Level 3: The Department, in collaboration with other relevant
Agency of Human Services departments, shall establish the maximum length
of stay in specialized shelters in rule or shelter standards.
      (4) Level 4: Hotels and motels:
          (A) Between April 1 and November 30 of each year, eligible
households may receive housing at hotels and motels with supportive services
for not more than 70 days per rolling 12-month period as calculated from the
date of the eligible household’s application through the same day of the month
12 months later.
          (B) Between December 1 and March 31 of each year, eligible
households may receive continuous services in cold-weather-use hotels and
                                                                 VT LEG #390226 v.1
No. 143  Page 23 of 40
2026
motels, which shall not be applied toward the time limit established in
subdivision (A) of this subdivision (4).
   (b) The Department may grant extensions to the time limits established in
subsection (a) of this section pursuant to criteria adopted in rule, including for:
      (1) an eligible household actively awaiting a placement in housing,
treatment, or other services;
      (2) medical necessity;
      (3) lack of reasonable alternative accessible placements for a member of
the eligible household with a disability; and
      (4) imminent risk to the health or safety of one or more of the eligible
household’s members.
§ 2213. CASE MANAGEMENT SERVICES
   Each eligible household shall be assigned a case manager, except where
specifically exempted for certain services, which may be from any Agency of
Human Services department or a community partner. Case management
services provided pursuant to this chapter shall be informed by the acuity level
of the eligible household and include individualized supports that connect an
eligible household to public assistance, health care, employment, permanent
housing, and other services. A household may request, but is not guaranteed, a
specific case manager or change in case manager.
                                                                    VT LEG #390226 v.1
No. 143  Page 24 of 40
2026
§ 2214. NEEDS ASSESSMENT
   The Office and community partners shall provide advice and consultation to
the Department of Housing and Community Development in its completion of
a needs assessment that identifies gaps in services for households that are
homeless in the State and includes recommendations to ensure the provision of
equitable services throughout the State.
§ 2215. NOTICE; APPEALS; RIGHT TO FAIR HEARING
   (a) The Office or a community partner shall provide written notice to any
applicant or household whose participation in the Program is denied, reduced,
suspended, or terminated. Notice shall include:
      (1) the specific factual and legal basis for the Office or community
partner’s decision;
      (2) the effective date of the action, which in the case of termination,
reduction, or suspension of services shall provide timely written notice by
email or U.S. mail;
      (3) a statement of the right to request a fair hearing pursuant to this
section; and
      (4) clear instructions, in plain language, on the process and deadlines for
filing an appeal.
   (b) An applicant for or a recipient of assistance pursuant to this chapter
may file a request for a fair hearing with the Human Services Board pursuant
to 3 V.S.A. § 3091 when:
                                                                   VT LEG #390226 v.1
No. 143  Page 25 of 40
2026
        (1) an application for assistance under the Program is denied in whole or
part;
        (2) a household’s benefits are terminated, reduced, or suspended; or
        (3) the household believes that benefits have not been provided in
accordance with applicable rules or policies.
   (c) An applicant or household shall file a request for a fair hearing with the
Human Services Board within 60 days after the date of the written notice
pursuant to subsection (a) of this section.
   (d) If a household files a request for a fair hearing within 14 days after
receiving notice pursuant to subsection (a) of this section, the Office or
community partner providing notice shall continue to provide services under
the Program without interruption until a decision is issued by the Human
Services Board, unless:
        (1) the household voluntarily waives continued services; or
        (2) a household or household member’s continued receipt of services
poses a risk of safety to others.
   (e) Fair hearings held pursuant to this section shall be conducted in
accordance with 3 V.S.A. §§ 3090–3091.
§ 2216. RULEMAKING
   The Department shall adopt rules pursuant to 3 V.S.A. chapter 25 for the
implementation of the Vermont Homelessness Response Continuum,
addressing at a minimum:
                                                                   VT LEG #390226 v.1
No. 143  Page 26 of 40
2026
      (1) requirements for community providers participating in the Program;
      (2) standards for highly structured, low-barrier, and specialized shelters;
      (3) documentation requirements for household eligibility, including
disability;
      (4) required elements for supportive services, including case
management;
      (5) the creation of a brief, standardized initial assessment form that may
be completed by hand, electronically, or by telephone;
      (6) a process for issuing timely, written approval or denial notifications
to applicants;
      (7) a process for issuing advance notice to households when the
household is being terminated from the Program;
      (8) applicant and household appeal procedures;
      (9) time limits for Program participation, including procedures for
extensions;
      (10) a process for reinstatement of services after a household’s
termination from the Program;
      (11) expectations for the Office’s oversight and quality monitoring,
including performance measurements applicable to all community partners and
grantees; and
                                                                  VT LEG #390226 v.1
No. 143  Page 27 of 40
2026
      (12) other subjects as deemed necessary.
§ 2217. REPORTING
   (a) Annually, as part of the Department’s budget presentation, the
Department shall provide a status report addressing each level of the Vermont
Homelessness Response Continuum. Minimally, the status report shall
address:
      (1) the number of households served within each level of the Program;
      (2) the average length of participation for households within each level
of the Program and the rate at which households successfully transition to
permanent housing;
      (3) the number of households diverted from entering shelters or hotel
and motel placements through prevention and diversion services;
      (4) the utilization of hotels and motels, including:
           (A) the average nightly number of rooms used;
           (B) the average and median length of stay;
           (C) the extent to which hotel and motel usage has decreased relative
to the prior fiscal year; and
           (D) the number of eligible households denied a hotel or motel room
due to authorized rooms being fully occupied;
                                                                  VT LEG #390226 v.1
No. 143  Page 28 of 40
2026
      (5) housing stability outcomes, including rates of return to homelessness
within six and 12 months following exit from the Program;
      (6) an assessment of regional capacity and access to services, including
identification of geographic areas with unmet needs or disproportionate
utilization of emergency housing resources;
      (7) total expenditures by Program level and funding source, including
State, federal, and other funds, and an analysis of cost efficiency across
housing models; and
      (8) any operational barriers to implementation of the Program, along
with recommendations for administrative or legislative action.
   (b) Annually, as part of the Department’s budget presentation, the
Department shall set goals for increased housing capacity, including permanent
supportive housing, permanent affordable housing, and shelter beds. The
Department shall provide data pertaining to the increased shelter capacity and
the extent to which shelter capacity meets the needs of eligible households
experiencing homelessness each year.
   (c) On or before the last day of each month, the Office, or other relevant
agency or department, shall post on its website a substantially similar report to
that due pursuant to 2023 Acts and Resolves No. 81, Sec. 6(b), including the
Office’s monthly expenditure on the Program by level.
                                                                   VT LEG #390226 v.1
No. 143  Page 29 of 40
2026
               * * * Continuums of Care; Required Merger * * *
Sec. 5. MERGER OF CONTINUUMS OF CARE
   (a) In order to promote the effective use of resources and continuity of care,
the Department for Children and Families’ Office of Economic Opportunity
shall work in collaboration with the Chittenden County Homeless Alliance, the
Balance of State Continuum of Care, and the U.S. Department of Housing and
Urban Development to establish a single continuum of care in the State on or
before October 1, 2028.
   (b) On or before January 15, 2028, the Office shall submit a written report
to the House Committee on Human Services and to the Senate Committee on
Health and Welfare summarizing efforts to establish a single continuum of care
pursuant to this section.
       * * * Effective October 1, 2028; Requirements of Grantees * * *
Sec. 6. 33 V.S.A. § 2218 is added to read:
§ 2218. GRANT REQUIREMENTS
   Any grant or other agreement executed by the Agency of Human Services
or its departments shall require a community partner, as appropriate, to:
      (1) participate in the local housing coalition or other group established
to assist eligible households who are homeless;
      (2) utilize the coordinated entry assessment for eligible households who
are homeless or at risk of homelessness;
                                                                  VT LEG #390226 v.1
No. 143  Page 30 of 40
2026
      (3) utilize the appropriate planning process and options for an eligible
household transitioning into permanent housing, including for eligible
households with an individual who has an intellectual or developmental
disability, older Vermonters, or individuals transitioning from a correctional
facility or hospital; and
      (4) measure performance outcomes, including diversion success, time to
housing, and housing retention.
    * * * Fiscal Year 2027 Time Limits for Use of Hotels and Motels * * *
Sec. 6a. FISCAL YEAR 2027 TIME LIMITS; HOTELS AND MOTELS
   In fiscal year 2027, an eligible household utilizing General Assistance
emergency housing in a hotel or motel during the previous fiscal year shall not
be subject to a reset of the 70-day limit established in 33 V.S.A.
§ 2212(a)(4)(A) until the 12-month anniversary of the eligible household’s
fiscal year 2026 application.
          * * * Transition and Rulemaking; Vermont Homelessness Response
                                Continuum * * *
Sec. 7. TRANSITION TO THE VERMONT HOMELESSNESS RESPONSE
          CONTINUUM
   Recognizing that the Department and community partners do not have the
capacity to fully implement the Vermont Homelessness Response Continuum
established in 33 V.S.A. chapter 22 on July 1, 2026, the Department through
the Office and community partners shall implement the Program to the fullest
                                                                     VT LEG #390226 v.1
No. 143  Page 31 of 40
2026
extent of their ability in fiscal year 2027 while developing the capacity to fully
implement the Program in fiscal year 2028.
Sec. 8. INTERIM EMERGENCY RULEMAKING; DEADLINE FOR
          ADOPTION OF PERMANENT RULES
   (a)(1) Pending the adoption of permanent rules on the Vermont
Homelessness Response Continuum, the Commissioner for Children and
Families shall adopt and maintain emergency rules pursuant to 3 V.S.A. § 844,
which shall be deemed to meet the standard for emergency rulemaking
pursuant to 3 V.S.A. § 844(a). Emergency rules required by this subsection
shall take effect on September 1, 2026, and shall, at a minimum, address the
required topics listed in 33 V.S.A. § 2216.
      (2) Between July 1, 2026, and August 31, 2026, the Commissioner for
Children and Families shall administer the Vermont Homelessness Response
Continuum by applying the General Assistance Emergency Housing rules
approved by the Legislative Committee on Administrative Rules on March 13,
2025, for the administration of this act.
   (b)(1) Unless extended by the Legislative Committee on Administrative
Rules pursuant to 3 V.S.A. § 843(c), the Department shall, on or before
October 1, 2027, adopt permanent rules pursuant to 3 V.S.A. chapter 25 on the
Vermont Homelessness Response Continuum as required by 33 V.S.A. § 2216.
      (2) Prior to filing the permanent rule with the Secretary of State
pursuant to 3 V.S.A. § 838, the Department shall:
                                                                   VT LEG #390226 v.1
No. 143  Page 32 of 40
2026
          (A) work in collaboration with stakeholders to develop the rule,
including holding at least five regional stakeholder hearings throughout the
State; and
          (B) on or before April 1, 2027, submit a draft of the rules to the
House Committee on Human Services and the Senate Committee on Health
and Welfare for review and consideration of Committee comments.
Sec. 9. IMPLEMENTATION STATUS REPORT; VERMONT
          HOMELESSNESS RESPONSE CONTINUUM
   On or before February 15, 2027, the Department for Children and Families’
Office of Economic Opportunity shall present a progress report to the House
Committee on Human Services and to the Senate Committee on Health and
Welfare on the Office’s implementation of the Vermont Homelessness
Response Continuum established pursuant to 33 V.S.A. chapter 22. The
Office’s presentation shall include an initial draft of the Department’s
permanent rules for the implementation of the Vermont Homelessness
Response Continuum and any recommendations for legislative action.
* * * Supportive and Shelter Services for Households Experiencing Domestic
                            or Sexual Violence * * *
Sec. 10. 33 V.S.A. chapter 6 is amended to read:
 CHAPTER 6. PREVENTION AND TREATMENT OF SEXUAL ABUSE
                AND DOMESTIC AND SEXUAL VIOLENCE
                                       ***
                                                                   VT LEG #390226 v.1
No. 143  Page 33 of 40
2026
§ 602. SUPPORTIVE SERVICES AND SHELTER FOR HOUSEHOLDS
        EXPERIENCING DOMESTIC OR SEXUAL VIOLENCE
   The Department shall select and enter into an agreement with a statewide
organization to provide or cause to be provided supportive services and shelter
to those households that are experiencing or that have experienced domestic or
sexual violence. If the statewide organization cannot fulfill its responsibilities
under this section, the Department shall work with another entity to ensure that
there is not a gap in services.
            * * * Vermont Rental Assistance Bridge Program * * *
Sec. 11. VERMONT RENTAL ASSISTANCE BRIDGE PROGRAM
   (a) The Vermont Rental Assistance Bridge Program is established within
the Vermont State Housing Authority for the purpose of linking households
who require rental assistance to permanent housing when the household does
not otherwise have access to relevant U.S. Department of Housing and Urban
Development rental assistance.
   (b)(1) The Agency shall collaborate with the Vermont State Housing
Authority to develop a framework for establishing a unified housing voucher
program that consolidates the voucher assistance currently provided though the
Agency’s departments. In developing this framework, the Agency and the
Vermont State Housing Authority shall:
                                                                   VT LEG #390226 v.1
No. 143  Page 34 of 40
2026
          (A) analyze the fiscal implications of consolidating existing voucher
programs into a unified program, including projected costs, potential
efficiencies, and impacts on funding sources;
          (B) assess the projected impact on the total number of individuals
served and on distinct populations, including:
             (i) individuals exiting homelessness;
             (ii) individuals facing eviction;
             (iii) individuals with mental health challenges;
             (iv) individuals with disabilities; and
             (v) any other population served by the department-administered
voucher programs;
          (C) identify administrative, operational, and statutory changes
required to implement a unified program; and
          (D) propose options and recommendations for the structure,
governance, and implementation of the unified program.
      (2) The Agency and the Vermont State Housing Authority shall report
their findings and recommendations to the House Committee on Human
Services and to the Senate Committee on Health and Welfare on or before
January 15, 2027.
   (c) The Vermont State Housing Authority and relevant departments of the
Agency of Human Services shall jointly work to:
                                                                  VT LEG #390226 v.1
No. 143  Page 35 of 40
2026
      (1) incorporate existing rental assistance that is funded by the Agency
and its departments and designated for Vermonters exiting homelessness into
the Program established in this section; and
      (2) establish eligibility criteria, any prioritization that may be necessary
for this use of funds appropriated for this Program, and the appropriate length
of assistance under this section.
   (d) The Program shall not provide the full amount of a household’s rental
payment and shall not be a permanent voucher. Program priority shall be
given to current recipients of the HOME Program, established pursuant to
10 V.S.A. § 321(b)(2), who have not yet reached 24 months of rental
assistance. Program payments shall be made directly from the Vermont State
Housing Authority to a household’s landlord.
   (e) The Program shall be accessible to eligible households served by each
of the Agency’s departments, with priority given to those exiting homelessness
and not to the exclusion of other eligible populations.
    * * * Payment Rate Structure and Fiscal Year 2027 Expenditures * * *
Sec. 12. PAYMENT RATE STRUCTURE; SHELTER SERVICES
   The Department for Children and Families, in collaboration with the
Agency of Human Services and relevant community partners, shall propose a
payment rate structure, including periodic rate reviews, for all shelter services
required by this act. The structure shall include a base rate and potential for
supplemental payment to the base if necessary and appropriate.
                                                                    VT LEG #390226 v.1
No. 143  Page 36 of 40
2026
     (1) On or before April 1, 2027, the Department shall submit an interim
report to the House Committee on Human Services and to the Senate
Committee on Health and Welfare regarding the implementation of the
payment rate structure and the Department’s proposed timeline for
implementation.
     (2) On or before November 1, 2027, the Department shall submit a final
report to the Joint Fiscal Committee regarding the implementation of the
payment rate structure and the Department’s proposed timeline for
implementation.
Sec. 13. FISCAL YEAR 2027 CAPPED ROOM RATES
  In fiscal year 2027, the Department for Children and Families or
community partners shall pay a hotel or motel establishment providing
emergency housing not more than the hotel’s lowest advertised room rate and
not more than $80.00 a day per room to shelter a household participating in the
Vermont Homelessness Response Continuum. The Department for Children
and Families or community partners may shelter a household in more than one
hotel or motel room depending on the household’s size and composition.
Sec. 14. EXPENDITURES; VERMONT HOMELESSNESS RESPONSE
          CONTINUUM
  (a) This act provides for the fiscal year 2027 expenditure of $82,634,153.00
for the provision of services, implementation of the Vermont Homelessness
                                                                VT LEG #390226 v.1
No. 143  Page 37 of 40
2026
Response Continuum, shelter development and operation, rental assistance,
and supportive services, including case management, as follows:
     (1) $39,284,606.00 for the Housing Opportunity Grant Program
operations, of which $38,251,696.00 is base funding from the General Fund,
$830,422.00 is federal funding, and $202,488.00 is from the Global
Commitment Fund;
     (2) $4,400,000.00 for the shelter development, of which $1,400,000.00
is base funding from the General Fund and $3,000,000.00 is one-time funding
from the General Fund;
     (3) $23,370,000.00 for emergency housing in hotels and motels, of
which $9,251,120.00 is base funding from the General Fund and
$14,118,880.00 is one-time funding from the General Fund;
     (4) $2,400,000.00 for case management, of which $2,400,000.00 is base
funding from the General Fund;
     (5) $4,200,000.00 for permanent supportive housing and family
supportive housing, of which $778,987.00 is base funding from the General
Fund and $3,421,013.00 is from the Global Commitment Fund;
     (6) $3,000,000.00 for rental assistance, of which $3,000,000.00 is base
funding from the General Fund;
     (7) $500,000.00 for grants to municipalities pursuant to 33 V.S.A.
§ 2209(a), of which $500,000.00 is one-time funding from the General Fund;
                                                                  VT LEG #390226 v.1
No. 143  Page 38 of 40
2026
      (8) $1,500,000.00 for emergency cold-weather shelters, of which
$1,500,000.00 is one-time funding from the General Fund;
      (9) $314,618.00 for other expenses, of which $314,618.00 is from
federal funding;
      (10) $3,164,929.00 for staffing, grants, and contracts, of which
$1,100,000.00 is base funding from the General Fund and $2,064,929.00 is
one-time funding from the General Fund; and
      (11) $500,000.00 for the Community Resource Center, of which
$500,000.00 is base funding from the General Fund.
   (b) Any funds that remain unspent at the end of fiscal year 2027 shall be
carried forward for the same purpose for which they were originally
appropriated.
   (c) Any funds appropriated for General Assistance emergency housing or
the Housing Opportunity Grant Program that remain unspent at the end of
fiscal year 2026 shall be carried forward for investment in the Vermont
Homelessness Response Continuum in fiscal year 2027.
   (d) On or before October 1, 2026; January 1, 2027; and April 1, 2027, the
Office shall submit a written report to the House Committees on
Appropriations and on Human Services and to the Senate Committee on
Appropriations and on Health and Welfare describing how the funds
referenced in subsection (a) of this section have been utilized to date, including
                                                                   VT LEG #390226 v.1
No. 143  Page 39 of 40
2026
whether expended funds were one-time or base General Fund, federal funds, or
Global Commitment funds.
               * * * Removing General Assistance Annual Report * * *
Sec. 15. 33 V.S.A. § 2115 is amended to read:
§ 2115. GENERAL ASSISTANCE PROGRAM REPORT
   On or before September 1 of each year, the Commissioner for Children and
Families shall submit a written report to the Joint Fiscal Committee; the House
Committees on Appropriations, on General, Housing, and Military Affairs, and
on Human Services; and the Senate Committees on Appropriations and on
Health and Welfare. The report shall contain the following:
      (1) an evaluation of the General Assistance program during the previous
fiscal year;
      (2) any recommendations for changes to the program;
      (3) a plan for continued implementation of the program;
      (4) statewide statistics using deidentified data related to the use of
emergency housing vouchers during the preceding State fiscal year, including
demographic information, client data, shelter and motel usage rates, clients’
primary stated cause of homelessness, and average lengths of stay in
emergency housing by demographic group and by type of housing; and
      (5) other information the Commissioner deems appropriate. [Repealed.]
                                                                   VT LEG #390226 v.1
No. 143  Page 40 of 40
2026
                          * * * Effective Dates * * *
Sec. 16. EFFECTIVE DATES
  (a) This section and Sec. 8 (deadline for adoption of permanent rules;
interim emergency rulemaking) shall take effect on passage.
  (b) Sec. 6 (grant requirements) shall take effect on October 1, 2028.
  (c) All remaining sections shall take effect on July 1, 2026.
Date Governor signed bill: June 16, 2026
                                                                  VT LEG #390226 v.1