Bill H.378 proposes the creation of a Housing Infrastructure Tax Increment Financing (TIF) program, which will be overseen 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 in Vermont statutes that defines key terms related to housing infrastructure projects, such as "brownfield," "developer," and "housing development site." It outlines the procedural requirements for municipalities to initiate housing infrastructure projects, including the development of a housing development plan, public hearings, and public infrastructure agreements.

Additionally, the legislation establishes guidelines for property taxes assessed within housing development sites, clarifying that special assessments for operating expenses unrelated to the housing infrastructure project will not be classified as property taxes. The bill allows municipalities to retain up to 80% of education and municipal property tax increments for up to 20 years after the substantial completion of the housing development. It also mandates the development of a data collection system for reporting on active projects, annual audits, and requires municipalities to notify relevant authorities of any project-related debt or public votes. The bill amends existing laws to incorporate housing infrastructure tax increment financing and specifies that decisions made by the Council regarding these projects are not subject to judicial review, with the act set to take effect on July 1, 2025.

Statutes affected:
As Introduced: 32-3325