An act relating to housing and common interest communities
Sponsored By: Sponsor information unavailable
Signed by Governor
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Bill Overview
Analyzed Economic Effects
10 provisions identified: 9 benefits, 0 costs, 1 mixed.
Affordable rental loans and rent protections
The Vermont Housing Finance Agency provides subsidized loans for rental projects adding at least two units. At least 25% of project units must be affordable to households earning up to 150% of area median income. Eligible projects include new construction, purchase with major repairs, and preservation of existing affordable housing. Loans cover only affordable-unit costs, capped at the lesser of 35% of those costs or the combined per-unit limits. Those limits are $150,000 for units serving households earning up to 80% of area median income, and $100,000 for 81–150%. The agency adjusts these limits for inflation at least annually. Enhanced subsidies must be available for qualifying projects, including employer or municipal/regional housing fund contributions covering at least 5% of total funding. Other qualifying projects use tax-exempt bonds or federal low-income housing tax credits for at least 20% of units, or small infill projects in historic settlement patterns. Subsidies can include lower interest, deferred principal payments, or partial loan forgiveness. Supported units stay affordable for seven years or until full loan repayment plus three years, whichever is longer. During that period, annual rent increases cannot exceed 3% unless the agency authorizes another amount. Loans issued before July 1, 2026 keep their signed terms. The agency must streamline applications, consult stakeholders, and spread investments fairly statewide, emphasizing areas with greater economic and employment needs. Loan repayments, interest, and fees support future loans, and the agency reports on the program annually.
Towns must allow more housing types
Beginning July 1, 2026, towns cannot exclude mobile, modular, manufactured, or prefabricated homes from districts allowing year-round housing. Existing state-law exceptions still apply. Towns must also permit duplexes in those districts, without stricter lot or size rules than for single-unit homes. Through December 31, 2027, residential districts with municipal sewer and water must permit homes with four or fewer units on single-home-sized lots. The exception for districts requiring more than four units returns January 1, 2028. Towns cannot reject one accessory dwelling unit in or attached to a single-family home just because the lot is not owner-occupied. Flood and stream-erosion bylaws are excepted, and other applicable approval requirements remain.
Housing council pays otherwise unpaid members
Service-Supported Housing Advisory Council members receive meeting pay when they are not otherwise compensated for their time. Payments follow the state's per-day compensation rules. The Department of Disabilities, Aging, and Independent Living pays from its base budget. This provision does not state a payment amount.
Towns must track housing needs
Beginning July 1, 2026, municipal housing plans must address regional housing needs and targets, including year-round and seasonal homes. Plans must identify zoning, labor, and physical barriers to building, rebuilding, or repairing enough homes. They must describe actions to meet projected needs, including those of low- and moderate-income households. Towns must document progress toward housing targets and update it as appropriate when plans are amended or readopted.
Treasurer gets more state lending capacity
The Vermont Treasurer can establish a general credit facility capped at 12.5% of the State's average cash balance. That raises the previous 10% limit while keeping a firm ceiling. A separate facility capped at 2.5% remains limited to climate infrastructure and resilience projects. The Treasurer must follow prudent investment rules and the Uniform Prudent Investor Act.
Easier designation for existing town centers
Beginning July 1, 2026, recognized preexisting designated new town centers receive an exception to the historic-place test. They do not need National Register listing or eligibility for Step Two village or Step Three downtown designation. The exception applies only to centers the program recognizes in that preexisting category.
More financing options for larger housing
The Vermont Economic Development Authority can finance housing developments with five or more units. A lender must request the financing and jointly fund the project. When both it and the Vermont Housing Finance Agency can finance an application, the authority must consult and defer to the agency. The authority cannot finance portions or phases the agency determines are mainly for low- or moderate-income occupancy. It also cannot finance portions or phases using the agency's debt or tax credits.
Pilot tests cheaper ways to build
The Vermont Treasurer can run a pilot testing whether modular and other off-site construction can lower housing development costs. It can explore bulk buying, construction-loan loss reserves, and a statewide purchasing group. The Treasurer can use authorized state credit funds, subject to their existing requirements; no specific funding amount is stated. Before distributing funds, the Treasurer must consult state housing and community development officials, the Vermont Economic Progress Council, and three state housing agencies. Pilot contracts with manufacturers or developers are exempt from the contracting requirements in state law's chapter 14.
Public guidance for shared-property communities
The Vermont Secretary of State must provide or distribute public information about common interest communities. This includes the state laws governing these communities. Residents and others gain a public source for understanding the rules.
Local improvements funded by property assessments
Beginning July 1, 2026, municipalities can issue bonds for public improvements benefiting a limited area. Special assessments on properties served repay the bonds, so owners in that area may face charges. The municipal legislative body must approve issuance and obtain a qualifying lender commitment or a rating of at least BBB. Qualifying lenders include the Vermont Bond Bank, insured banks, and regulated credit unions. The bonds are not general municipal debt, and bondholders cannot force the town to levy taxes. Assessments securing these bonds are not treated as property taxes under specified district and housing-site rules. That classification does not set or reduce what owners pay.
Sponsors & Cosponsors
Sponsors
There is no primary sponsor on record.
Cosponsors
There are no cosponsors for this bill.
Roll Call Votes
No roll call votes available for this bill.
Actions Timeline
Senate Message: Signed by Governor June 18, 2026
5/29/2026SenateSigned by Governor on June 18, 2026
5/29/2026SenateDelivered to Governor on June 12, 2026
5/29/2026SenateAs passed by Senate and House
5/28/2026SenateHouse message: House concurred in Senate proposal of amendment
5/28/2026HouseSenate proposal of amendment to House proposal of amendment concurred in
5/27/2026HouseRules suspended and taken up for immediate consideration as moved by Rep. McCoy of Poultney
5/27/2026HouseNotice Calendar: Senate Proposal of Amendment to House Proposal of Amendment
5/27/2026HouseSenate Message: House proposal of amendment concurred in with further proposal of amendment thereto
5/26/2026SenateRules suspended & messaged to House forthwith, on motion of Senator Baruth
5/26/2026SenateHouse proposal of amendment concurred in with further proposal of amendment as moved by Senator(s) Clarkson, Brock, Chittenden, Ram Hinsdale, and Weeks
5/26/2026SenateHouse proposal of amendment; text
5/26/2026SenateHouse proposal of amendment
5/26/2026SenateHouse proposal of amendment
5/22/2026SenateEntered on Notice Calendar
5/22/2026SenateHouse message: House passed bill in concurrence with proposal(s) of amendment
5/21/2026HouseRules suspended and bill messaged forthwith to the Senate as moved by Rep. McCoy of Poultney
5/20/2026HouseRead third time and passed in concurrence with proposal of amendment
5/20/2026HouseRules suspended and bill placed in all remaining stages of passage as moved by Rep. McCoy of Poultney
5/20/2026HouseThird Reading ordered
5/20/2026HouseReport of Committee on General and Housing, as amended, agreed to
5/20/2026HouseReport of the Committee on General and Housing, as amended, amended as recommended by the Committee on Appropriations
5/20/2026HouseReport of the Committee on General and Housing amended as recommended by the Committee on Ways and Means
5/20/2026HouseRep. Dickinson of St. Albans Town recommended for the Committee on Appropriations
5/20/2026HouseRep. Kimbell of Woodstock recommended for the Committee on Ways and Means
5/20/2026House
Bill Text
As Enacted (ACT 179)Opens in a new window
6/22/2026
As Passed by Both Chambers
6/5/2026
As Passed by Both Chambers (Unofficial)
6/5/2026
House Proposal of Amendment
5/27/2026
House Proposal of Amendment (Unofficial)
5/27/2026
As Passed by the Senate
3/31/2026
As Passed by the Senate (Unofficial)
3/31/2026
As Introduced
1/29/2026
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