Bill Summary – FastDemocracy

BILL AS INTRODUCED                                                           H.161
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                                       H.161
 Introduced by Representative Sullivan of Dorset
 Referred to Committee on
 Date:
 Subject: Housing
 Statement of purpose of bill as introduced: This bill proposes to create a
 framework to stabilize rents and provide assistance for Vermont tenants
 adversely affected by the COVID-19 public health emergency.
    An act relating to rent stabilization and economic mobility
 It is hereby enacted by the General Assembly of the State of Vermont:
 Sec. 1. FINDINGS
    The General Assembly finds:
         (1) The economic impact of the COVID-19 pandemic, including the loss
 or interruption of employment and the potential contraction of the Vermont
 economy, threatens the ability of Vermonters to provide basic necessities for
 themselves and their families, including affordable housing.
         (2) Property owners, landlords, and developers, in order to be
 encouraged to continue to provide, improve, maintain, and increase the stock VT LEG #351683 v.2
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 of affordable housing in Vermont, need to be assured of the ultimate receipt of
 rent payments.
       (3) Due to both its natural attractiveness and its proactive response to
 the current pandemic, and further due to the potential influx into Vermont
 pursuant to a reinvigorated national immigration policy of persons eligible to
 emigrate to the United States, Vermont stands uniquely to attract persons to re-
 locate to Vermont.
       (4) The provision of rent-stabilized housing will serve further to
 encourage persons to migrate to Vermont.
       (5) Population growth will serve to reverse the deleterious economic
 effects of Vermont’s aging and declining population.
 Sec. 2. RENT STABILIZATION
    (a) For all leases covering a tenancy for any period in calendar years 2021
 and 2022, a landlord shall not charge rent that exceeds the rent charged to any
 tenant at the same property on March 1, 2020, with the exception of any rent
 negotiated and agreed in a lease previously entered into between March 1,
 2010 and December 31, 2020.
    (b) Between January 1, 2021 and December 31, 2022, a tenant may not be
 evicted from their leasehold based exclusively on the nonpayment of rent,
 provided that the tenant timely sends to the landlord before the 15th day of the
 month subsequent to the tenant’s failure to pay monthly rent:
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       (1) a certification of inability to pay the previous month’s rent due to a
 COVID-19-related adverse economic event, such as job loss or other reduction
 of wages occasioned directly by the COVID-19 pandemic; and
       (2) a promise signed by the tenant to pay the monthly or other periodic
 rent owed, secured by the tenant’s execution of a promissory note and security
 interest in a form satisfactory to the Vermont Department of Labor obligating
 the payment of the missed rent.
    (c) Between January 1, 2023 and December 31, 2024, rents in Vermont
 shall be stabilized by limiting annual rent increases to not more than five
 percent of the rents charged in calendar years 2021 and 2022.
    (d) Notwithstanding the protection against evictions provided in subsection
 (b) of this section, and subject to all pre-existing requirements of Vermont law
 relating to eviction proceedings, a landlord may initiate an eviction proceeding
 based exclusively on the nonpayment of rent:
       (1) if the tenant’s COVID-19-related adverse economic event has abated
 and the tenant fails to pay rents when due;
       (2) if any certification provided by a tenant was knowingly false when
 made; or
       (3) after 12 months have elapsed since the tenant’s last certification of a
 COVID-19-related inability to pay the tenant has failed to satisfy one or more
 of the promissory notes executed pursuant to subdivision (b)(2) of this section.
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    (e) As to any rents in any given year not received by a landlord under a
 leasehold agreement pursuant to the certification and promissory note
 procedure of subdivision (b)(2) of this section, the landlord may deduct from
 the owner’s Vermont income taxes the lost rent as a form of carrying cost,
 which lost rent, when later collected, shall not be required to be reported as
 income, provided the landlord can demonstrate an investment in new housing
 units or improvement in existing units during that calendar year.
    (f) Provided that the certification, promissory note, and security interest are
 in writing and signed by the tenant, all such instruments will be deemed
 supported by consideration, and to be self-authenticated and witnessed, such
 that no such instrument will be considered ineffective based on a failure of the
 instrument to be witnessed or otherwise notarized or sworn.
 Sec. 3. 32 V.S.A. § 5830f is added to read:
 § 5830f. TAX CREDIT; BROADBAND INVESTMENTS IN RENTAL
           HOUSING
    A taxpayer of this State shall be eligible for a rental housing broadband
 credit against the tax imposed for the taxable year under sections 5822 and
 5831 of this chapter. The credit allowed under this section shall be equal to the
 taxpayer’s investment costs during the taxable year in upgrading or installing
 new broadband access in rental housing owned or rented by the taxpayer.
 Investments in rental housing broadband made by the taxpayer during the 2020
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 taxable year shall be eligible investment costs under this section for the 2021
 taxable year. As used in this section, “rental housing” includes short-term
 rentals as defined in 18 V.S.A. § 4301.
 Sec. 4. 32 V.S.A. § 5813(y) is added to read:
    (y) The statutory purpose of the rental housing broadband credit in section
 5830f of this title is to reduce the tax liability of landlords and renters who
 invest in improving the access to broadband in Vermont’s rental housing units.
 Sec. 5. REPEALS
    The following are repealed on January 1, 2024:
       (1) 32 V.S.A. § 5830f; and
       (2) 32 V.S.A. § 5813(y).
 Sec. 6. EFFECTIVE DATES
    This act shall take effect on passage except, notwithstanding 1 V.S.A.
 § 214, Sec. 3 (income tax credit) shall take effect retroactively on January 1,
 2021 and apply to taxable years beginning on and after January 1, 2021.
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