Vermont towns could test modular home building and plan for housing

A municipality may issue bonds to pay for a public improvement serving a limited area. The improvement must benefit a limited area within the municipality. The municipality's governing body must approve the bonds. A qualifying financial institution must provide a commitment letter, or a recognized rating organization must rate the bond issuance at least BBB or equivalent. The bonds are payable only from assessments on properties served by the improvement. Bondholders cannot require the municipality to use taxes to pay them. The text gives no start date or deadline for issuing bonds.

The Agency of Commerce and Community Development, working with the Department of Buildings and General Services, must develop a modular construction pilot and study. The study must consider ways modular construction could reduce housing costs, including group purchases, preapproved designs, loans, permitting, and building codes. The pilot must take place in one or more towns willing to make needed rule changes and accept the homes. The Agency must work with the Treasurer to study whether the State could guarantee or otherwise support bulk purchases. Before the Treasurer distributes funds under this provision, the Treasurer must consult specified State housing agencies. The Agency must report findings and recommendations by November 15, 2028, and end the pilot on June 30, 2030.

The Department of Housing and Community Development must run the Vermont Rental Housing Improvement Program and award funding to nonprofit housing organizations. Eligible work includes repairs, weatherization, and accessibility improvements to rental homes. The nonprofit organizations would use competitive grants and forgivable loans to help private landlords pay for eligible improvements. The Department must set statewide standards for reviewing applications and making awards. It may let partner organizations provide award money at the start of a project. The text gives no start date or deadline for this program.

The Vermont Economic Development Authority may finance certain multiunit housing developments when a lender requests and jointly finances them. The development must have at least five units. The Authority must consult with and defer to the Vermont Housing Finance Agency when a project could receive financing from both agencies. The Authority cannot finance a development that uses funding issued by the Vermont Housing Finance Agency. The text gives no start date or deadline for this financing authority.

A municipality must address housing needs in its plan or, if it cannot meet regional housing targets, provide the State an analysis of the barriers and possible actions. The duties apply to municipal housing plans and, when a municipality cannot meet regional housing targets, its analysis for the Department of Housing and Community Development. The housing needs analysis must include the needs of people with disabilities. A municipality that cannot meet its regional targets must describe needed housing, barriers such as zoning or infrastructure, and steps it could take to address them. The plan may use information from adopted local assessments or State and regional reports. The municipality's governing body decides how much detail to add beyond the stated minimum. The text gives no date for completing these planning duties.