Vermont Rural Housing Access Act

Vermont Rural Housing Access Act Section 2. Vermont Rural Housing Incentive Fund (VRHIF) The VRHIF is created within the Vermont Housing & Conservation Board (VHCB). Funds shall be distributed as voluntary grants or low-interest loans to municipalities, community land trusts, and housing developers for eligible rural housing projects. Funds shall be appropriated on an annual basis, and any future funding is explicitly subject to annual legislative approval, ensuring compliance with Vermont constitutional limitations on multi-year fiscal commitments. Projects must be located in towns with fewer than 5,000 residents or designated rural areas, reserve at least 40% of units for low- or moderate-income households for a minimum of 30 years through voluntary affordability covenants, and comply fully with existing state building codes. Section 3. Municipal Property-Tax Adjustment Option Municipalities may (but are not required to) adopt a local property-tax adjustment for qualified housing projects. The State may reimburse up to 50% of municipal revenue reductions through the annual appropriations process. All reimbursements are explicitly subject to funding availability. To satisfy Vermont’s “common benefits” clause: All abatements must follow clear, published standards. Eligibility must be based on affordability, unit deed restrictions, and community benefit. Section 4. Rural Housing Permit Streamlining Program Municipalities may elect to participate in a Rural Housing Fast-Track Permit Program, administered jointly by ACCD and ANR. Participation is strictly voluntary. The State shall develop optional model zoning amendments—such as for ADUs, small multifamily housing, and village-center mixed-use redevelopment. Municipalities may adopt, modify, or decline these templates at their discretion. Nothing in this section authorizes exemptions from Act 250. The fast-track program coordinates reviews but does not restrict ANR’s or the Natural Resources Board’s jurisdiction. Section 5. Energy & Sustainability Standards All VRHIF-funded projects must meet the latest version of the Vermont Residential Building Energy Standards. Projects may receive additional grant funding for achieving net-zero-ready performance or integrating onsite renewable systems. Section 6. Oversight & Reporting Biennial reports shall be published for the length of the program on affordability compliance, energy performance, and community impact. The State Auditor shall evaluate program outcomes every four years, with authority to recommend programmatic changes. Section 7. Effective Date This Act takes effect on the first day of the new year following passage.