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Bill > H0874


VT H0874

VT H0874
An act relating to municipal acquisition of abandoned residential and commercial property, municipal regulation of housing, and State funding for housing development


summary

Introduced
02/04/2026
In Committee
02/04/2026
Crossed Over
Passed
Dead

Introduced Session

2025-2026 Session

Bill Summary

This bill proposes to authorize a municipality to acquire through voluntary sale, judicial foreclosure, or other lawful means, or alternatively to impose incrementally increasing fines on, any residential property located within a designated downtown or village area that has been abandoned. Property acquired would be used solely for a public purpose, such as medical housing, transitional housing, rehabilitative or respite housing, or youth or community facilities. Separately, the bill proposes to authorize a municipality to acquire abandoned commercial property located within a designated downtown or village area and dispose of the commercial property to purchasers who demonstrate a material local economic presence or commitment, operate or intend to operate a startup or small business, and contribute to the downtown or village economic revitalization. In addition, the bill proposes to authorize municipalities to enforce habitability standards for H.874 residential and commercial rental properties and to adopt controls on annual rent increases subject to certain limitations. The bill proposes to limit funding under the Vermont Rental Housing Improvement Program to individuals improving individually owned residential properties, provide additional funding for first-time homebuyers purchasing residential properties needing repairs, and provide funding incentives for housing developments built specifically for senior citizens if the development includes housing for visiting relatives, housing for medical personnel, or respite housing. Finally, the bill proposes to require that all housing developments receiving State funds incorporate universal design principles in the designs of the housing development, to require that a certain number of housing units be fully compliant with the Americans with Disabilities Act, and to give priority to applicants with a disability for units designated for individuals exiting homelessness.

AI Summary

This bill allows municipalities to address abandoned residential and commercial properties in designated downtown or village areas by either acquiring them through voluntary sales or foreclosures for public use like transitional housing or community facilities, or by imposing escalating fines on owners of abandoned residential properties. For abandoned commercial properties, municipalities can acquire and then sell them to buyers with a local economic connection, startups, or small businesses that will help revitalize the downtown or village. The bill also empowers municipalities to enforce housing habitability standards and regulate annual rent increases for rental properties, with certain limitations. Furthermore, it modifies the Vermont Rental Housing Improvement Program to focus on individuals improving their own homes, provides extra funding for first-time homebuyers purchasing fixer-upper homes, and offers incentives for senior housing developments that include accommodations for visiting relatives, medical staff, or respite care. Finally, all state-funded housing developments must incorporate universal design principles, ensure a number of units are fully compliant with the Americans with Disabilities Act (ADA), and prioritize individuals with disabilities exiting homelessness for designated units.

Committee Categories

Housing and Urban Affairs

Sponsors (1)

Last Action

House Committee on General and Housing Hearing (15:15:00 2/26/2026 Room 31) (on 02/26/2026)

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