VermontVermont towns must allow factory-built homes in some residential districts
Vermont towns must allow factory-built homes in some residential districts, while the law also describes housing planning and financing provisions.
What it does
Towns must allow mobile, modular, manufactured, and prefabricated homes in districts that allow year-round housing.
Municipal plans must assess barriers to meeting local housing needs and describe possible actions, including progress toward building needed homes.
The law authorizes a larger State Treasurer credit facility, a pilot to explore modular construction, and financing for some developments of five or more homes. The financing has limits, including a bar on projects mainly for low- or moderate-income households or using VHFA funds.
VHFA's housing loan program may fund projects serving people who earn up to 80 or 150 percent of the area's median income, depending on program requirements.
With approval from its legislative body and subject to a marketability safeguard, a municipality may issue bonds backed only by special assessments for the purpose those assessments fund.
Argument forAllowing factory-built homes in more residential districts could give builders more options for adding homes where year-round housing is allowed.
Argument againstCities and towns could lose some control over local housing rules, and two limits on their zoning rules end on January 1, 2028.
More detail
Municipal bylaws must allow mobile, modular, manufactured, and prefabricated homes in districts that allow year-round housing. The rule applies in districts where year-round residential development is allowed. The act has multiple effective dates beginning July 1, 2026, but the summary does not give this rule's start date.
A municipal plan's housing section must analyze barriers to building enough homes and describe possible actions to meet projected needs. The analysis covers regulatory, labor, and physical barriers to meeting the municipality's housing needs and targets. The summary gives no specific start date for this planning requirement.
The law authorizes housing finance tools, including a larger State Treasurer credit facility, an off-site construction pilot, and financing for some housing projects. The credit facility increase applies to the Office of the State Treasurer; the pilot explores modular construction, and the Authority's financing applies to qualifying multiunit developments. The Vermont Economic Development Authority may finance developments of five or more homes only when stated conditions are met. It must defer to VHFA and cannot fund projects mainly for low- or moderate-income households or projects using VHFA funds. The off-site construction program is a pilot to explore whether modular construction could reduce housing costs. The act has multiple effective dates beginning July 1, 2026, but the summary does not give these provisions' start dates.
The Rental Housing Revolving Loan Program may fund housing serving people with incomes up to 80 or 150 percent of area median income, as program requirements allow. The provision concerns housing funded through VHFA's Rental Housing Revolving Loan Program for low-income individuals. Which income limit applies depends on the Program requirements. The act has multiple effective dates beginning July 1, 2026, but the summary does not give this provision's start date.
A municipality may issue revenue bonds backed only by special assessments for the same purpose those assessments fund. This authority applies to municipalities issuing revenue bonds backed solely by special assessments. The municipality's legislative body must approve the bonds, and a marketability safeguard applies. Special assessments backing these bonds are not treated as property taxes retained for tax increment financing. The act has multiple effective dates beginning July 1, 2026, but the summary does not give this provision's start date.
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Where it stands
- Introduced
- Passed 1st Chamber
- Passed 2nd Chamber
- To Governor
- Became Law
Looking ahead
No hearings or votes scheduled.
History
- 2026
- May 29Senate Message: Signed by Governor Phil Scott June 18, 2026Latest
- May 29Signed by Governor Phil Scott on June 18, 2026Became Law
- May 29Delivered to Governor on June 12, 2026To Governor
- May 28As passed by Senate and HouseMajor
- May 28House message: House concurred in Senate proposal of amendmentMinor
- May 27Senate proposal of amendment to House proposal of amendment concurred inMinor
- May 27Rules suspended and taken up for immediate consideration as moved by Rep. McCoy of Poultney
- May 27Notice Calendar: Senate Proposal of Amendment to House Proposal of AmendmentMinor
- May 26Senate Message: House proposal of amendment concurred in with further proposal of amendment theretoMinor
- May 26Rules suspended & messaged to House forthwith, on motion of Senator Baruth
- May 26House proposal of amendment concurred in with further proposal of amendment as moved by Senator(s) Clarkson, Brock, Chittenden, Ram Hinsdale, and WeeksMinor
- May 26House proposal of amendment; textMinor
- May 26House proposal of amendmentMinor
- May 22House proposal of amendmentMinor
- May 22Entered on Notice Calendar
- May 21House message: House passed bill in concurrence with proposal(s) of amendment
- May 20Rules suspended and bill messaged forthwith to the Senate as moved by Rep. McCoy of Poultney
- May 20Read third time and passed in concurrence with proposal of amendmentPassed 2nd Chamber
- May 20Rules suspended and bill placed in all remaining stages of passage as moved by Rep. McCoy of Poultney
- May 20Third Reading orderedMinor
- May 20Report of Committee on General and Housing, as amended, agreed to
- May 20Report of the Committee on General and Housing, as amended, amended as recommended by the Committee on Appropriations
- May 20Report of the Committee on General and Housing amended as recommended by the Committee on Ways and Means
- May 20Rep. Dickinson of St. Albans Town recommended for the Committee on Appropriations
- May 20Rep. Kimbell of Woodstock recommended for the Committee on Ways and Means
- May 20Rep. Charlton of Chester reported for the Committee on General and Housing
- May 20Read second timeMinor
- May 20Rules suspended and taken up for immediate consideration, pending entry on Notice Calendar, as moved by Rep. McCoy of Poultney
- May 13Pending entry on Notice Calendar, referred to Committee on Appropriations per Rule 35(a)
- Apr 30Referred to Committee on Ways and Means per Rule 35(a)
- Apr 30Notice Calendar: Favorable with Amendment
- Mar 31Read first time and referred to the Committee on General and HousingMinor
- Mar 26Read 3rd time & passedPassed 1st Chamber
- Mar 26Pending third reading, bill amended as moved by Senator(s) PerchlikMinor
- Mar 26Pending third reading, bill amended as moved by Senator(s) Ram Hinsdale, Brock, Chittenden, Clarkson, and WeeksMinor
- Mar 26Senator(s) Ram Hinsdale, Brock, Chittenden, Clarkson, and Weeks to substitute amendment agreed to
- Mar 26Pending third reading, motion to amend bill offered by Senator(s) Watson, Hardy, Beck, Bongartz, and WilliamsMinor
- Mar 26Recommendation of amendment to be offered by Senator(s) Watson
- Mar 26New Business/Third ReadingMinor
- Mar 253rd reading ordered
- Mar 25Recommendation of amendment by Committee on Economic Development, Housing and General Affairs, as amended, agreed to
- Mar 25Recommendation of amendment by Committee on Economic Development, Housing and General Affairs amended as recommended by Committee on Appropriations
- Mar 25Reported favorably by Senator Watson for Committee on Appropriations with recommendation of amendmentMinor
- Mar 25Reported favorably by Senator Brock for Committee on FinanceMinor
- Mar 25Reported favorably by Senator Clarkson for Committee on Economic Development, Housing and General Affairs with recommendation of amendmentMinor
- Mar 25Read 2nd timeMinor
- Mar 25Favorable report with recommendation of amendment by Committee on AppropriationsMinor
- Mar 25Favorable report by Committee on FinanceMinor
- Mar 25Favorable report with recommendation of amendment by Committee on Economic Development, Housing and General AffairsMinor
- Mar 25Unfinished Business/Committee Bill for Second ReadingMinor
- Mar 24Recommendation of amendment to be offered by Senator Watson
- Mar 24Favorable report with recommendation of amendment by Committee on AppropriationsMinor
- Mar 24Favorable report by Committee on FinanceMinor
- Mar 24Favorable report with recommendation of amendment by Committee on Economic Development, Housing and General AffairsMinor
- Mar 24New Business/Committee Bill for Second ReadingMinor
- Mar 20Favorable report with recommendation of amendment by Committee on AppropriationsMinor
- Mar 20Favorable report by Committee on FinanceMinor
- Mar 20Favorable report with recommendation of amendment by Committee on Economic Development, Housing and General AffairsMinor
- Mar 20Committee Bill for Second ReadingMinor
- Mar 20Entered on Notice Calendar
- Mar 19Referred to Committee on Appropriations per Senate Rule 31
- Mar 19Favorable report by Committee on FinanceMinor
- Mar 19Favorable report with recommendation of amendment by Committee on Economic Development, Housing and General AffairsMinor
- Mar 19Committee Bill for Second ReadingMinor
- Mar 19Entered on Notice Calendar
- Mar 17Referred to Committee on Finance per Senate Rule 31
- Mar 17Favorable report with recommendation of amendment by Committee on Economic Development, Housing and General AffairsMinor
- Mar 17Committee Bill for Second ReadingMinor
- Mar 17Entered on Notice Calendar
- Feb 3Committed to Committee on Economic Development, Housing and General Affairs on motion of Senator Clarkson
- Feb 3Committee Bill for Second ReadingMinor
- Feb 3Entered on Notice Calendar
- Jan 30Committee bill read first time & placed on Notice Calendar per Senate Rule 48Introduced
Housing