Bill > H0378

This bill establishes a new Housing Infrastructure Tax Increment Financing (TIF) program in Vermont, administered by the Vermont Economic Progress Council, which allows municipalities to use a portion of their education and municipal property tax increments to finance infrastructure projects that will stimulate housing development. The program enables municipalities to create housing development sites in designated areas such as Tier 1 zones, existing settlements, or areas near settlements, and allows them to retain up to 80% of education property tax increments and at least 80% of municipal property tax increments for up to 20 years to fund housing infrastructure improvements. To participate, municipalities must develop a comprehensive housing development plan, hold public hearings, execute a public infrastructure agreement with a developer or sponsor, and receive approval from the Vermont Economic Progress Council. The bill requires municipalities to ensure that at least 50% of the projected private development is dedicated to housing and provides detailed guidelines for debt incurrence, tax increment retention, reporting, and auditing. The program aims to incentivize housing development by providing financial flexibility for infrastructure investments, with specific protections for municipalities and transparency requirements. The bill will take effect on July 1, 2025, and adds a new subchapter to Vermont's municipal law to govern this innovative financing approach.

Budget and Finance

https://legislature.vermont.gov/bill/status/2026/H.378