VermontS.1272025-2026 SessionSenateWALLET

An act relating to housing and housing development

Sponsored By: Sponsor information unavailable

Signed by Governor

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Bill Overview

Analyzed Economic Effects

12 provisions identified: 8 benefits, 0 costs, 4 mixed.

Grants to fix manufactured homes

Beginning July 1, 2025, the state funds nonprofits to help manufactured homeowners and park owners. Homeowners can get up to $15,000 for a primary home to pay for a foundation or HUD‑approved slab, site work, skirting, tie‑downs, and utility hookups, plus habitability and accessibility fixes. Park owners can get up to $20,000 for small capital needs to fill vacant lots, like removing abandoned homes, grading, electrical and septic work, and flood relocations. The Department may set detailed rules for who qualifies and how awards are made.

More rental homes with rent caps

Beginning July 1, 2025, units funded with 10‑year forgivable loans must keep total tenant cost (rent plus utilities) at or below HUD fair market rent, unless a voucher pushes it higher. Landlords must accept vouchers and first offer these units to people exiting homelessness, households in refugee or immigrant resettlement, and people who get or qualify for Medicaid home‑based services; other groups can qualify with approval if none are available. For five‑year grants or loans, landlords must lease to these priority groups for at least five years and coordinate with local homelessness and nonprofit partners.

Bigger rehab help for landlords

Beginning July 1, 2025, VRHIP awards can cover up to $70,000 per unit for accessible units or $50,000 for other units, plus up to $20,000 more for visitability upgrades. A landlord who converts a grant to a forgivable loan gets a 10% forgiveness credit for each year in the program. At least 30% of yearly funds are set aside for five‑year awards, and unused set‑aside money after nine months shifts to 10‑year loans. Program operators are exempt from licensed‑lender laws for program actions, repayments recycle back into the Fund, and the Department must publish annual results by award type, rent levels vs. HUD, and turnover.

Rent hikes capped in VHFA units

For VHFA‑backed middle‑income rentals, a subsidized unit must stay affordable for the longer of seven years or until the loan is repaid plus three years. During that time, annual rent increases are capped at 3% unless VHFA authorizes a different amount. This section takes effect on passage of the Act, not July 1, 2025.

Faster cleanup to build housing

Beginning July 1, 2025, the state prioritizes brownfield cleanups for sites that have or will have housing. Up to $2 million in FY2026 is available for brownfield assessment, planning, and cleanup. Developers may manage certain development soils under approved plans if soils are tested, capped as required, and recorded in land records.

Plan 600 supported homes for disabilities

Beginning July 1, 2025, a state committee must create an actionable plan to add at least 600 supported housing units for people with developmental disabilities. The Secretary of Human Services must call the first meeting by July 15, 2025. The committee must report to lawmakers by November 15, 2025 and then ends on November 30, 2025.

Low‑cost town loans for housing

Beginning July 1, 2025, the Vermont Bond Bank runs an Infrastructure Sustainability Fund to give low‑interest loans or buy municipal bonds for water, sewer, stormwater, broadband, and similar projects that unlock housing. Projects must show clear ties to new homes and a town commitment to own and run the systems. The Fund is revolving, so repayments finance future projects. Terms may include interest caps and forgiveness as set by the Bank.

Stronger fair housing and access

Beginning July 1, 2025, it is illegal to refuse housing, loans, services, or ads because of traits like race, disability, having kids, income, or immigration or citizenship status. The law also protects you from harassment that interferes with renting or buying, and it bars discrimination in land‑use permitting. Public places cannot deny you service because of the listed traits. When federal law requires it, checking immigration status or treating applicants differently is not a violation, and lenders may consider immigration status only as federal rules allow.

Primary‑home rule and limited appeals

Beginning July 1, 2025, homes in CHIP‑supported developments must be offered only as primary residences until the project debt is paid off; compliance can be shown with a landlord certificate or a homestead declaration every two years. VEPC runs the housing review process with added nonvoting housing experts. Council approvals or denials for these projects are administrative and cannot be appealed in court.

New town tax tool for housing

Beginning July 1, 2025, towns can create housing infrastructure sites and keep the growth in education property tax (“tax increment”) to pay for project costs. Towns must still pay the Education Fund the tax on the site’s original value each year, and the increment can only fund the project. Borrowing to build infrastructure is allowed for five years after site creation (with up to a three‑year extension) but each borrowing must be approved by local voters. VEPC must approve projects, decide within 90 days after a site visit, apply a but‑for test except for affordable housing, and may only approve applications filed by December 31, 2035. Each year, VEPC cannot approve more than $200 million in total lifetime education tax increment retention across projects.

Faster study on Act 250 appeals

Beginning July 1, 2025, the Land Use Review Board must finish its Act 250 appeals report by November 15, 2025. The Board must include a broad stakeholder group and allow public comment. The goal is to speed and improve housing‑related appeals decisions.

Smoke and CO alarms for homes

Beginning July 1, 2025, single‑family homes must have photoelectric or UL 217 smoke alarms near bedrooms and on each level, and carbon monoxide alarms near bedrooms. If the home has electricity, alarms must use house power and a battery; homes built before January 1, 1994 may follow earlier power rules. At a sale closing, the seller must certify alarms are present and must fix missing or broken alarms within 10 days after timely notice. Builders must install these alarms in new homes. Stores must post state‑approved info about alarm type, placement, and installation. Owners and occupants are not legally required to maintain or use the alarms after installation.

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Sponsors & Cosponsors

Cosponsors

There are no cosponsors for this bill.

Roll Call Votes

All Roll Calls

Yes: 290 • No: 124

House vote • 5/30/2025

Which was agreed to on a Roll Call Passed -- Needed 70 of 139 to Pass -- Yeas = 137, Nays = 2

Yes: 137 • No: 2 • Other: 1

House vote • 5/23/2025

Which was disagreed to on a Roll Call Failed -- Needed 70 of 139 to Pass -- Yeas = 53, Nays = 86

Yes: 53 • No: 86 • Other: 1

House vote • 5/23/2025

Which was agreed to on a Roll Call Passed -- Needed 68 of 136 to Pass -- Yeas = 100, Nays = 36

Yes: 100 • No: 36 • Other: 1

Actions Timeline

Senate Message: Signed by Governor June 12, 2025
6/13/2025House
Signed by Governor on June 12, 2025
6/13/2025Senate
Delivered to Governor on June 6, 2025
6/6/2025Senate
Senate Message: Report of Committee of Conference adopted
5/30/2025House
Rules suspended & ordered delivered to Governor forthwith, on motion of Senator Baruth
5/30/2025Senate
As passed by Senate and House
5/30/2025Senate
Committee of Conference report adopted
5/30/2025Senate
Committee of Conference report submitted by Senator Ram Hinsdale for Committee, text
5/30/2025Senate
Rules suspended & taken up for immediate consideration, on motion of Senator Baruth
5/30/2025Senate
House message: House adopted Conference Committee report
5/30/2025Senate
Rules suspended and bill messaged forthwith to the Senate as moved by Rep. McCoy of Poultney
5/30/2025House
Which was agreed to on a Roll Call Passed -- Needed 70 of 139 to Pass -- Yeas = 137, Nays = 2
5/30/2025House
Committee of Conference report adopted (Senate bill)
5/30/2025House
Rep. Mihaly of Calais demanded yeas and nays
5/30/2025House
Rules suspended and taken up for immediate consideration, pending entry on Notice Calendar, as moved by Rep. McCoy of Poultney
5/30/2025House
House message: House appointed Conference Committee members
5/28/2025Senate
Speaker appointed Reps. Mihaly of Calais, Kimbell of Woodstock, and Marcotte of Coventry as members of the Committee of Conference on the part of the House
5/28/2025House
Senate Message: House proposal of amendment not concurred in and Committee of Conference appointed
5/28/2025House
Rules suspended & messaged to House forthwith, on motion of Senator Baruth
5/28/2025Senate
Committee of Conference appointed: Senators Clarkson, Ram Hinsdale, and Mattos
5/28/2025Senate
House proposal of amendment not concurred in; Committee of Conference requested, on motion of Senator Clarkson
5/28/2025Senate
House proposal of amendment; text
5/28/2025Senate
Rules suspended & taken up for immediate consideration, on motion of Senator Baruth
5/28/2025Senate
House proposal of amendment
5/28/2025Senate
Entered on Notice Calendar
5/28/2025Senate

Bill Text

As Enacted (ACT 69)
6/19/2025
PDF
As Passed by Both Chambers
6/4/2025
PDF
As Passed by Both Chambers (Unofficial)
6/4/2025
PDF
House Proposal of Amendment
5/28/2025
PDF
House Proposal of Amendment (Unofficial)
5/28/2025
PDF
As Passed by the Senate
4/4/2025
PDF
As Passed by the Senate (Unofficial)
4/4/2025
PDF
As Introduced
3/17/2025
PDF

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