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1 H.723
2 Introduced by Representatives Williams of Barre City, McCann of Montpelier,
3 Casey of Montpelier, Anthony of Barre City, Boyden of
4 Cambridge, Branagan of Georgia, Brown of Richmond,
5 Brumsted of Shelburne, Burrows of West Windsor, Campbell of
6 St. Johnsbury, Chapin of East Montpelier, Chase of Chester,
7 Chesnut-Tangerman of Middletown Springs, Cina of
8 Burlington, Cole of Hartford, Farlice-Rubio of Barnet, Goldman
9 of Rockingham, Headrick of Burlington, Howard of Rutland
10 City, Hyman of South Burlington, Krasnow of South
11 Burlington, LaBounty of Lyndon, LaLonde of South
12 Burlington, Logan of Burlington, Ode of Burlington, Patt of
13 Worcester, Priestley of Bradford, Rice of Dorset, Stebbins of
14 Burlington, Surprenant of Barnard, Torre of Moretown, Troiano
15 of Stannard, Waters Evans of Charlotte, and Wood of
16 Waterbury
17 Referred to Committee on
18 Date:
19 Subject: Flood recovery; appropriations; land use planning VT LEG #373151 v.1
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1 Statement of purpose of bill as introduced: This bill proposes to enact multiple
2 provisions related to statewide flood recovery and improved future flood
3 preparedness and resilience.
4 An act relating to flood recovery
5 It is hereby enacted by the General Assembly of the State of Vermont:
6 * * * Tax Abatement Reimbursement * * *
7 Sec. 1. REIMBURSEMENT TO MUNICIPALITIES OF STATE
8 EDUCATION PROPERTY TAXES THAT WERE ABATED DUE
9 TO FLOODING
10 (a)(1) The Commissioner of Taxes may approve an application by a
11 municipality for reimbursement of State education property tax payments owed
12 under 32 V.S.A. § 5402(c) and 16 V.S.A. § 426. To be eligible for
13 reimbursement under this section, prior to April 15, 2024, a municipality shall
14 have abated, in proportion to the abated municipal tax, under 24 V.S.A. § 1535
15 the State education property taxes that were assessed on eligible property, after
16 application of any property tax credit allowed under 32 V.S.A. chapter 154.
17 (2) As used in this subsection, “eligible property” means property lost or
18 destroyed due directly or indirectly to severe storms and flooding in an area
19 that was declared a federal disaster between July 1, 2023 and October 15,
20 2023, provided the loss or destruction resulted in one or more of the following:
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1 (A) a 50 percent or greater loss in value to the primary structure on
2 the property;
3 (B) loss of use by the property owner of the primary structure on the
4 property for 60 days or more;
5 (C) loss of access by the property owner to utilities for the primary
6 structure on the property for 60 days or more; or
7 (D) condemnation of the primary structure on the property under
8 federal, State, or municipal law, as applicable.
9 (b) If a municipality demonstrates that, due to disruption to tax collections
10 resulting from flooding in an area that was declared a federal disaster between
11 July 1, 2023 and October 15, 2023, the municipality incurred unanticipated
12 interest expenses on funds borrowed to make State education property tax
13 payments owed under 32 V.S.A. § 5402(c) and 16 V.S.A. § 426, the
14 municipality may be reimbursed by an amount equal to its reasonable interest
15 expenses under this subsection, provided the amount of reimbursed interest
16 expenses shall not exceed eight percent.
17 (c) The Commissioner shall adopt application and approval procedures for
18 reimbursements made to municipalities under this section.
19 (d) Notwithstanding any provision of law to the contrary, the Agency of
20 Education has the authority to make the reimbursements approved by the
21 Commissioner under this section by:
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1 (1) reducing the amount of State education property tax payments that a
2 municipality owes under 32 V.S.A. § 5402(c) and 16 V.S.A. § 426; or
3 (2) reconciling the reimbursements with any State education property
4 tax payments that a municipality has already made under 32 V.S.A. § 5402(c)
5 and 16 V.S.A. § 426.
6 (e) A board of abatement may reconsider any decision it has made between
7 April 1, 2023 and July 1, 2024. The General Assembly recognizes the public
8 service provided by boards of abatement and encourages boards to create
9 procedures to treat all claims for property tax abatements due to the severe
10 storms and flooding uniformly.
11 Sec. 2. HOMESTEAD PROPERTY TAX CREDIT; HOUSEHOLD INCOME
12 DEFINITION; EXCLUSION OF DISASTER RELIEF PAYMENTS;
13 TAXABLE YEARS 2023 AND 2024
14 Notwithstanding 32 V.S.A. § 6061(4)(A) and (5), the definition of
15 household income for purposes of the homestead property tax credit shall
16 exclude all disaster relief payments, as determined under 26 U.S.C. § 139,
17 received by a taxpayer in taxable years 2023 and 2024.
18 * * * Flood Recovery; Municipal Lost Revenue * * *
19 Sec. 3. FLOOD RECOVERY LOST REVENUE GRANT PROGRAM
20 (a) The Agency of Commerce and Community Development shall establish
21 a program to award grants to municipalities to offset municipal tax and other VT LEG #373151 v.1
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1 revenues lost due to the 2023 flooding, including lost property tax revenue due
2 to tax abatement of flood affected property. The Agency of Commerce and
3 Community Development shall establish a formula for the award of grants to
4 municipalities under this section. The formula shall be noncompetitive and
5 shall be designed to award grants based on the proportion of revenue lost by
6 each municipality.
7 (b) Applications for a grant under this section shall be submitted to the
8 Agency of Commerce and Community Development on or before January 1,
9 2025. The Agency shall provide an application form or electronic application
10 that all affected municipalities may access.
11 (c) In addition to other funds appropriated to the Agency of Commerce and
12 Community Development in fiscal year 2025, $15,000,000.00 from the
13 General Fund is appropriated to the Agency for grant awards to municipalities
14 under this section.
15 * * * Flood Recovery Assistance Program * * *
16 Sec. 4. FLOOD RECOVERY ASSISTANCE PROGRAM
17 (a) The Agency of Commerce and Community Development shall establish
18 the Flood Recovery Assistance Program (FRAP) to provide financial
19 assistance to nonprofit and for-profit businesses in the State that suffered losses
20 due to the 2023 floods. Assistance under the program shall be available for all
21 of the following when related to losses due to the 2023 flooding:
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1 (1) physical or structural damages from flooding;
2 (2) lost revenue of businesses;
3 (3) lost wages of employees of businesses;
4 (4) lost inventory and new supplies;
5 (5) damaged equipment; and
6 (6) other administrative or operating expenses.
7 (b) The Agency shall develop criteria for awards under this section,
8 including priority eligibility for businesses owned by persons of color and
9 indigenous peoples and businesses owned by new Americans. U.S. citizenship
10 shall not be a requirement for eligibility under the program.
11 (c) In addition to other funds appropriated to the Agency of Commerce and
12 Community Development in fiscal year 2025, $40,000,000.00 from the
13 General Fund is appropriated to the Agency for grant awards under this
14 section.
15 (d) The program established under this section shall replace the Business
16 Emergency Gap Assistance Program created by the Agency.
17 * * * VEM Coordination and Collaboration with Municipalities * * *
18 Sec. 5. EMERGENCY PREPAREDNESS; MUNICIPAL COORDINATION
19 AND COLLABORATION
20 (a) The Division of Vermont Emergency Management (VEM) at the
21 Department of Public Safety shall establish a working group to improve VEM
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1 coordination and collaboration with municipalities prior to and during declared
2 emergencies and other hazards in the State. The working group shall be
3 composed of:
4 (1) the Commissioner of Public Safety or designee;
5 (2) the Secretary of Commerce and Community Development or
6 designee;
7 (3) the Secretary of Natural Resources or designee; and
8 (4) five representatives of municipalities affected by an emergency or
9 other hazard in the State within the past 24 months to be appointed by the
10 Vermont League of Cities and Towns.
11 (b) The Working Group shall address how to improve VEM coordination
12 and collaboration with municipalities, including:
13 (1) increased municipal representation in VEM emergency planning;
14 (2) increased funding to municipalities to improve equipment necessary
15 to properly respond to or mitigate an emergency or other hazard;
16 (3) protocols for communication between municipalities and VEM and
17 other State agencies during an emergency or other disaster; and
18 (4) increased training and support by VEM of municipal emergency
19 responders.
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1 (c) The Working Group shall submit its recommendations to the
2 Commissioner of Public Safety and the General Assembly on or before
3 January 1, 2025.
4 Sec. 6. FLOOD RESILIENT COMMUNITIES PROGRAM
5 (a) Upon expenditure of all money appropriated to the Division of Vermont
6 Emergency Management’s (VEM’s) Flood Resilient Communities Fund, VEM
7 shall rename the program the Flood Resilient Communities Program to
8 continue to provide funding for hazard mitigation matching funds and a State-
9 level buyout program for parcels ineligible for Federal Emergency
10 Management Administration-related programs. Funds under the Program shall
11 be available for:
12 (1) the buyout or purchase of flood damaged property;
13 (2) elevation of flood damaged structures;
14 (3) removal of damaged structures or debris on flood damaged property;
15 and
16 (4) activities to increase flood resiliency of property, including
17 streambank alteration or land conservation.
18 (b) In addition to other funds appropriated to the Department of Public
19 Safety in fiscal year 2025, $10,000,000.00 from the General Fund is
20 appropriated to the Department for VEM administration of the Flood Resilient VT LEG #373151 v.1
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1 Communities Program. VEM shall not commingle State funds received under
2 this subsection with previous appropriations to VEM from federal sources.
3 * * * Flood Recovery Group Funding * * *
4 Sec. 7. VEM FUNDING OF FLOOD RECOVERY GROUPS
5 In addition to other funds appropriated to the Department of Public Safety
6 in fiscal year 2025, $2,000,000.00 from the General Fund is appropriated to the
7 Department to provide grants to Long-Term Recovery Groups established to
8 provide assistance and funding to municipalities impacted by the 2023
9 flooding. An organization shall be eligible for an award under this section if
10 the Federal Emergency Management Administration approved the organization
11 as a long-term recovery group for the purpose of addressing the needs of
12 persons or families affected by the 2023 flooding. Awards under this program
13 shall be used to provide assistance for flood recovery when funds are not
14 available from other federal or State resources.
15 * * * Housing Development; Repair * * *
16 Sec. 8. HOUSING DEVELOPMENT; FLOOD IMPACTED
17 MUNICIPALITIES
18 (a) In addition to other funds appropriated to the Agency of Commerce and
19 Community Development in fiscal year 2025, $2,000,000.00 from the General
20 Fund is appropriated to the Agency for the purposes of the Vermont Housing
21 Improvement Program (VHIP) to provide grants for housing construction,
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1 renovation, or repair in municipalities impacted by the 2023 flooding or in
2 municipalities adjacent to municipalities impacted by the 2023 flooding.
3 (b) The Agency shall develop criteria for awards under this section. The
4 criteria shall prioritize awards to:
5 (1) persons and families of low or moderate income; and
6 (2) housing or other structures located in a flood hazard area.
7 (c) The Agency shall coordinate the award of grants under this section
8 with funds awarded under Sec. 7 of this Act to ensure that all costs related to
9 flood recovery and repair are eligible for assistance.
10 * * * Disclosure of Property Located in Flood Hazard Area * * *
11 Sec. 9. 27 V.S.A. § 380 is added to read:
12 § 380. DISCLOSURE OF INFORMATION; CONVEYANCE OF REAL
13 ESTATE
14 (a) Prior to or as part of a contract for the conveyance of real property, the
15 seller shall provide the buyer with the following information:
16 (1) whether the real property is located in a Federal Emergency
17 Management Agency mapped flood hazard area or whether the property is
18 located in a fluvial erosion hazard area mapped by a municipality;
19 (2) whether the real property was ever subject to flooding; and
20 (3) the flood insurance rates for the real property, if applicable.
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1 (b) The failure of the seller to provide the buyer with the information
2 required under subsection (a) of this section is grounds for the buyer to
3 terminate the contract prior to transfer of title or occupancy, whichever occurs
4 earlier.
5 (c) A buyer of real estate who fails to receive the information required to be
6 disclosed by a seller under subsection (a) of this section may bring an action to
7 recover from the seller the amount of the buyer’s damages and reasonable
8 attorney’s fees. The buyer may also seek punitive damages when the seller
9 knowingly failed to provide the required information.
10 (d) A seller shall not be liable for damages under this section for any error,
11 inaccuracy, or omission of any information required to be disclosed to the
12 buyer under subsection (a) of this section when the error, inaccuracy, or
13 omission was based on information provided by a public body or by another
14 person with a professional license or special knowledge who provided a
15 written report that the seller reasonably believed to be correct and that was
16 provided by the seller to the buyer.
17 (e) Noncompliance with the requirements of this section shall not affect the
18 marketability of title of a real property.
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1 Sec. 10. 9 V.S.A. chapter 137, subchapter 5 is added to read:
2 Subchapter 5. Disclosure of Information Prior to Entering Rental Agreement
3 § 4481. DEFINITIONS
4 As used in this subchapter:
5 (1) “Commercial or industrial property” means any real property that is
6 used for a commercial or industrial use.
7 (2) “Landlord” means the owner, lessor, or where applicable sublessor
8 of a residential dwelling or commercial or industrial building.
9 (3) “Rental agreement” means any agreement, written or oral, setting the
10 terms and