Bill H.378 proposes the creation of a Housing Infrastructure Tax Increment Financing (TIF) program, which will be managed by the Vermont Economic Progress Council. This program enables municipalities to leverage statewide education property tax and municipal property tax increments to fund infrastructure projects that promote housing development in designated areas. The bill introduces a new subchapter to existing law, defining key terms such as "housing infrastructure project," "developer," and "municipality." It outlines the procedural requirements for establishing a housing infrastructure project, including the development of a housing development plan, conducting public hearings, and obtaining approval from the municipal legislative body.

Additionally, the bill sets forth the requirements for public infrastructure agreements and the application process for municipalities seeking TIF approval. It mandates transparency by requiring municipalities to provide detailed information to voters prior to any public vote on financing. The bill also specifies the management of tax increments generated from housing development sites, allowing municipalities to retain up to 80% of these increments for up to 20 years after substantial completion of the project. Furthermore, it amends the responsibilities of the Vermont Economic Progress Council to include oversight of the TIF program, establishes a reporting framework for municipalities, and ensures annual audits of housing infrastructure projects. The act is scheduled to take effect on July 1, 2025.

Statutes affected:
As Introduced: 32-3325