The bill S.240, introduced by Senator Vyhovsky, aims to establish the Vermont Housing Production Revolving Fund, which will be administered by the Office of the State Treasurer. This fund is intended to provide perpetual affordable housing for low and moderate-income households through the issuance of one-time bonds totaling $50,000,000. The funds raised will be used to purchase or develop multifamily housing units, which will be managed by the Vermont Department of Housing and Community Development. The bill outlines the criteria for projects, eligibility for loans, and the processes for application and funding distribution, ensuring that the housing remains affordable and accessible.

Additionally, the bill includes provisions for the management and operation of the housing projects, emphasizing that the Department of Housing and Community Development will maintain these units as affordable housing indefinitely. It specifies that rental agreements will be capped at 30% of a household's income, with restrictions on rent increases and tenant removals. The properties developed under this initiative will be exempt from state taxes, although the Department may agree to make payments for services provided by state public bodies. The act is set to take effect on July 1, 2026.