Bill > S0296

This bill requires developers involved in projects financed by tax increment financing (TIF) to include specific protections for municipalities in their development agreements, ensuring that the project generates enough tax revenue to cover the municipality's debt obligations related to the financing for the entire duration of the TIF district or housing development site, with this guarantee needing to be secured to the municipality's satisfaction through various means like a letter of credit or a mortgage. Additionally, developers must provide at least one of three other protections: safeguarding the property's taxable value, allowing the municipality to proceed with the project independently if the developer fails, or giving the municipality an equity stake in the developer, such as through profit sharing. The bill also amends existing law concerning housing infrastructure agreements to mandate compliance with these new development agreement requirements and clarifies that these provisions take effect immediately upon passage.

Budget and Finance

https://legislature.vermont.gov/bill/status/2026/S.296