Bill S.305, introduced by Senators Ram Hinsdale and others, proposes significant amendments to Vermont's land use and housing laws aimed at increasing housing availability and streamlining the permitting process. Key provisions include a mandate for municipalities to permit mobile homes, modular housing, and prefabricated housing in any district that allows year-round residential development, ensuring these housing types are treated equally to traditional housing. The bill also clarifies the definition of areas served by municipal sewer and water infrastructure, requiring them to be within one-quarter mile of roads with available capacity for housing. Additionally, it allows residential construction using union labor to exceed density bonuses by an extra 20 percent.

Further changes include the repeal of certain requirements for participation in municipal regulatory proceedings related to zoning appeals and the establishment of presumptions regarding state and municipal permits, indicating that acceptance of these permits suggests no detriment to public health and welfare. The bill also addresses common interest communities by prohibiting restrictive covenants on leasing units and operating family child care homes. A pilot program for positive rental payment reporting is introduced, with $100,000 allocated for its implementation. Furthermore, the bill amends housing infrastructure agreement provisions, requiring tax increments for housing projects to be obligated for financing costs, while repealing the previous requirement for landlords to provide biennial certificates or homestead declarations. The new provisions are set to take effect on July 1, 2026.

Statutes affected:
As Introduced: 24-4412, 24-4303, 24-4471, 24-4472, 10-8503, 10-8504, 10-6033, 10-6086, 10-6001, 3-2822(g), 3-2822, 32-5811(21)(C), 32-5811, 32-5811(21), 24-1909