The bill H.775 aims to boost housing production in Vermont through the establishment of two pilot programs: the Rural Housing Finance Pilot Program and the Off-Site Construction Accelerator Pilot Program. It empowers municipalities to issue revenue bonds backed by special assessments for financing public improvements in designated areas. The bill also increases the financial cap on the State Treasurer's authority to create a credit facility for mobile home park infrastructure and allows the Treasurer to retain interest on loans from these funds to enhance housing availability and facilitate bulk purchasing of off-site constructed housing. Additionally, it creates the Vermont Housing Special Fund to manage the interest from these loans.

Key provisions include tax stabilization for up to 300 housing units in eligible rural communities and a streamlined application process for municipalities. The bill modifies the State Treasurer's credit facility limits and outlines the creation of the Vermont Housing Special Fund. It also establishes a pilot program for off-site construction of homes, which will explore cost-reduction strategies and involve a municipal planning grant to assist in regulatory reforms. Furthermore, the bill amends the Vermont Rental Housing Improvement Program to allow funding for nonprofit organizations to rehabilitate rental units and creates two new full-time Grants Management Specialist positions within the Department of Housing and Community Development. The act is set to take effect on July 1, 2026.

Statutes affected:
As Introduced: 32-5404a(a), 32-5404a, 10-10, 10-699