Rethinking Property Taxes

Rethinking Property Taxes

The Vermont Chamber testified this week in the House Ways and Means Committee on proposed property tax classification changes, which will be a critical component to the future of education finance. From taxes to housing and healthcare, businesses and residents are grappling with mounting pressures. The message is clear: Vermont must address its most significant issues with bold, comprehensive reforms in order to remain competitive and economically resilient. A path toward sustainability and predictability is needed to support Vermont’s economic drivers.

The proposed system expands property classifications into nine distinct categories. Although this could enable a more nuanced tax framework, there are concerns about the feasibility of implementation. In the Vermont Chamber’s recent Business Climate Survey, 86% of businesses expected last year’s property tax increases to impact their financial health. We encouraged the committee to recognize the significant tax burden businesses face, to support investment and growth, and to ensure that Vermont remains competitive in attracting business investment.

While there are concerns with the current proposal, we remain committed to staying at the table to ensure that the business community has a proactive voice and that any changes remain equitable, transparent, and supportive of economic growth. Meaningful reforms will require all stakeholders to engage in difficult conversations. 

As a member-driven organization, we value your feedback, which will help shape our advocacy work as we continue these conversations. Please consider taking this micro-survey to inform our efforts.

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Halfway Point: Taking Stock of the Legislative Session and Vermont’s Affordability Challenges

Halfway Point: Taking Stock of the Legislative Session and Vermont’s Affordability Challenges

With crossover complete, the Vermont Chamber advocacy team provides a comprehensive status update on Vermont’s most pressing affordability issues—education and property taxes, housing, healthcare, and business cost and regulation. Early measures in education and property taxes show promise in easing financial pressures, while proposed reforms in housing and healthcare remain under review amid evolving priorities. Key issues are summarized below.

Education Finance and Delivery

Following an average property tax increase of 14% last year, Vermont’s education finance and delivery system has reached a critical inflection point. With a clear focus on progressivity, transparency, and local control, the Legislature is examining the Administration’s proposals, which aim to address nearly every aspect of the current education finance framework—from how property tax credits are calculated to new measures designed to reduce disparities among school districts. However, significant questions remain regarding the potential for cost containment and the methodologies that will be employed to achieve it.

  • Yield Bill Passes Ways and Means: Curbing Property Tax Hikes: The House Ways and Means Committee passed the yield bill (9-2-0), proposing a uniform change to both non-homestead and homestead property tax rates for the upcoming fiscal year. The bill uses the one-time $77.2 million general fund transfer proposed by the Administration to buy down the property tax rate to an average increase of 1.1% versus the 5.9% increase that would have been realized without the transfer.
  • Education Reform Gets More Time: Due to the complexity of education reform—covering proposed changes to district sizes, funding, governance of Centers for Technical Education (CTE), prekindergarten, and a potential shift to a foundation formula—lawmakers are expected to take additional time beyond the standard crossover deadline. These decisions will ultimately determine whether cost containment can be achieved this session.

Housing

The continued lack of affordable housing is making living in Vermont more challenging for workers and families. Thoughtful reforms—such as streamlining permitting, encouraging higher-density and mixed-use developments, and revising financing mechanisms—are needed to help stabilize prices, support community resilience, and increase housing output.

  • Housing-Focused Infrastructure Financing Gains Momentum: Public infrastructure remains a major barrier to housing development. A housing-focused version of the long-proposed project-based Tax Increment Financing (TIF) program has gained momentum in the Senate, alongside a bond bank program designed to extend and enhance water and sewer service capacity for housing in municipalities.
  • Middle Income Programs Get Policy Approval; Budget Approval Pending: Programs designed to bridge the financing gap for housing developers or homebuyers have received support in policy committees, although the final budget for these initiatives has yet to be determined.
  • Act 250 Appeals Study Expedited: The timeline for a study on Act 250 appeals was expedited to allow the Legislature to develop policy proposals in time for the next session.

Healthcare

Commercial healthcare premiums have increased by double digits over the past three years while healthcare providers continue to face staffing and funding challenges in delivering the access to care communities need; 45% of respondents to the Vermont Chamber’s Business Climate Survey have adjusted their benefits in response to rising costs—with smaller businesses feeling the impact the most.

  • Reference-Based Pricing: Reforms Under Consideration to Curb Costs: In efforts to control costs, the Senate is moving forward with a proposal to implement reference-based pricing (RBP) before phasing in global hospital budgets.
  • New Law Unmerges Markets, Double-Digit Premium Increases Likely: In a swift legislative move, Vermont’s Legislature permanently unmerged the individual and group healthcare markets—a measure signed into law by Governor Scott—to shield small businesses from the higher costs of the individual market. However, the path to addressing the underlying cost drivers remains unclear and another year of double-digit increases may be unavoidable.
  • Workforce and Demographic Challenges: Further Action Needed: While current programs remain essential, little progress has been made in developing solutions to address the growing staffing shortages and demographic shifts impacting the healthcare system. Additional proactive measures are needed to ensure long-term workforce sustainability and maintain access to quality care.

Vermont’s Business Climate

The Vermont Chamber’s Business Climate Survey revealed a stark reality: respondents consistently voiced frustration with Vermont’s business environment, citing rising operational costs, regulatory hurdles, and a lack of workforce availability. The Vermont Chamber’s focus remains aligned with what Vermonters expressed at the polls in November—addressing affordability, spurring economic growth, and tackling Vermont’s toughest challenges head-on. 

  • Military Retiree Pension Exemption Ignored: Despite strong bipartisan support in the House and Senate, legislation that would exempt the pensions of military retirees and survivor benefits from taxation has not been taken off the wall, leaving Vermont as the second least desirable state for military retirees.  Vermont’s veteran population is declining at a rate of 2.7% annually, compared to a national decrease of 1.6%.
  • Balanced Comprehensive Data Privacy Gains Traction: A Comprehensive data privacy bill has received unanimous committee approval as it moves through the Senate. While compliance with this law will carry costs, the bill aligns with data privacy standards in other New England states and avoids exposing businesses to costly legal fees by excluding a private right of action.
  • Electricity Rate Increases: Two Senate committees have advanced a bill that is raising serious concerns due to its potential to increase electric costs for ratepayers.
  • New Business Taxes and Fees Off the Table for Now: While new and increased taxes were front of mind last year, tax increases targeting Vermont businesses have been off the table thus far.

Looking Ahead: What’s Next for Affordability Policy?

As the Legislature moves into the second half of the session, many of these affordability proposals will face significant hurdles in securing final approval and funding, and things can change dramatically as bills move from one chamber to the other. Proposals that seemed settled in one committee may be completely rewritten or stalled as they face new scrutiny and ideology. Several efforts to deliver some form of affordability remain in play, but competing priorities and budget constraints will shape what ultimately moves forward. Adding to the uncertainty, federal funding fluctuations could impact healthcare, infrastructure, and workforce programs, forcing lawmakers to make difficult trade-offs. The Vermont Chamber will remain engaged at every step, ensuring that affordability remains at the forefront as these critical policies take shape.

Property Tax Discussions Take Shape

Property Tax Discussions Take Shape

As Vermont’s Legislature shifts into high gear amid pressing fiscal challenges, discussions on the Property Tax Yield Bill have begun in earnest. This bill is central to determining statewide property tax rates using a funding formula, school budget votes, and other key factors.

In Vermont, the overall property tax framework rests on two pillars—the Municipal Tax Rate and the Education Tax Rate—and applies to two property classifications: homestead properties (the owner-occupied principal dwelling and its surrounding land) and non-homestead properties, such as rental units and commercial spaces. The education tax rate for non-homestead properties differs from that for homesteads. With affordability concerns reaching a critical point across the state, the Vermont Chamber advocates for a uniform bill change that equalizes the impact on both homestead and non-homestead taxpayers.

What Is Being Considered

Based on the Education Fund outlook for fiscal year 2026, several scenarios are under debate by the House Ways and Means Committee. Under these scenarios, the homestead property tax rate is projected to range from $1.577 to $1.677 per $100 of assessed value, while the non-homestead rate is expected to vary between $1.703 and $1.791 per $100.

A significant factor influencing these projections is the Administration’s one-time $77.2 million General Fund transfer. The House Ways and Means Committee is exploring different approaches for this transfer—options include applying the full amount directly to reduce tax bills or allocating half of it to a transition reserve.

The Vermont Chamber’s Advocacy

Amid these evolving discussions, the Vermont Chamber continues to advocate for a uniform bill change that ensures an equal impact on both homestead and non-homestead taxpayers. This approach aims to provide greater clarity and predictability for both businesses and households across Vermont.

With the crossover deadline for fiscal policy looming next week and legislative debates intensifying around education finance and broader systemic challenges, the decisions made in Montpelier will resonate statewide. The Vermont Chamber remains committed to championing data-informed solutions that support robust economic growth and a balanced tax environment.

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Lt. Governor John Rodgers Connects with Business Leaders at the Wellspring Forum

Lt. Governor John Rodgers Connects with Business Leaders at the Wellspring Forum

Lieutenant Governor John Rodgers connected with Vermont business leaders at the Vermont State House today for the latest installment of the Wellspring Forum series. Each event in the series brings together top business and policy leaders for a robust discussion on pressing economic issues and is moderated by Vermont Chamber President Amy Spear.

“Connecting businesses and policy leaders is a critical component of our mission to advance the Vermont economy. Vermont is at a critical juncture, and this week is particularly significant as it marks the crossover deadline,” stated Spear. “Lieutenant Governor Rodgers discussed key issues affecting Vermont’s affordability, emphasizing that we must come together to find solutions that lead us toward a prosperous and sustainable economic future—one that ensures living and doing business in Vermont remains viable.”
Lt. Governor Rodgers focused on the most urgent economic challenges facing Vermont, highlighting workforce shortages and affordability as top concerns. Business leaders stressed the need for targeted strategies to attract and retain workers and young families, underscoring the importance of keeping Vermont an attractive place to live, work, and do business.
“I believe Vermont’s strength lies in the spirit of our communities and the vitality of our local businesses,” said Lt. Governor Rodgers. “I remain dedicated to championing affordability and ensuring our economic policies pave the way for a secure future. When we set aside partisan differences and work together, we create a Vermont where every community and enterprise can thrive. Affordability isn’t just a policy goal—it should be a promise to Vermonters.”
The Wellspring Forum series is supported by NBT Bank. The event’s name draws inspiration from former Governor James H. Douglas, who once said: “I am often reminded that the wellspring of Vermont liberty flows from Main Street, not State Street.”

Building Vermont’s Tomorrow: Tackling Affordability, Housing, and Economic Challenges

Building Vermont’s Tomorrow: Tackling Affordability, Housing, and Economic Challenges

As Town Meeting break concludes and the Legislature prepares to return to Montpelier next week, the stakes have never been higher. Vermont’s economic and legislative landscape is at a critical juncture, and this special edition of State to Main highlights the progress, challenges, and opportunities that lie ahead for our state’s economy. The Vermont Chamber’s focus remains aligned with what Vermonters expressed at the polls in November—addressing affordability, spurring economic growth, and tackling Vermont’s toughest challenges head-on. In a time when rising costs in critical areas like education finance, housing, and healthcare are straining families and businesses, our commitment to thoughtful, data-informed progress is more essential than ever. 

The Stakes: Navigating Demographic Realities 

Vermont’s unique character is our greatest asset, yet our demographic trends demand urgent attention. Since 2000, our population has remained relatively stagnant while shifting dramatically toward an older demographic. More than one-fifth of Vermonters are 65 or older, and over 35 percent are already past 54—the age when many exit the workforce. With the state recording the lowest fertility rate in the nation and retaining only about 43% of its college graduates, we have experienced negative net migration from 2010 to 2020. Our high dependency ratio further underscores the mounting burden on an increasingly dwindling economically active population. Compounding these challenges is Vermont’s fiscal environment—ranking as the third-highest state in the nation for tax collections per capita. With property and individual income taxes as our largest revenue sources, families and businesses are increasingly strained by limited housing options and rising costs. To reverse these trends, Vermont must add an average of 13,500 workers annually over the next 10 to 15 years. The Vermont Economic Action Plan sets a bold, necessary target: expand our population to 802,000 by 2035. This growth isn’t for its own sake; it is essential to revitalizing our communities, strengthening our tax base, and ensuring every Vermonter benefits from a vibrant economy. 

Housing: The Cornerstone of Prosperity 

Our housing market paints an equally urgent picture. Vermont once built housing at a brisk pace, but in recent decades, production has slowed dramatically. According to a statewide needs assessment, we require 36,000 new housing units by 2029—translating to about 7,200 new homes annually over the next five years—to adequately meet demand. Yet, last year, only 2,500 units were permitted, highlighting a critical shortfall. Without significant intervention, our housing shortage will continue to drive up prices, placing a severe financial burden on families and stifling community resilience. Addressing these barriers—by streamlining permitting processes, incentivizing higher-density and mixed-use developments, and revising financing mechanisms—is essential if we are to triple our housing output over the next decade. Relying on quick fixes will only mask the problem; real, sustainable change demands that we tackle outdated housing production models and systemic fiscal pressures at their core. 

A Call to Action: Embrace Abundance 

Vermont’s future is a choice between two distinct paths. One path leads to rising costs, diminished public services, and a stagnating economy—a future defined by scarcity. The alternative is a future of abundance, where strategic growth cultivates a thriving business climate, robust public services, and affordable living for all Vermonters. While quick fixes may seem appealing, they fall short of creating sustainable change. Real progress requires us to confront the root causes of our challenges—demographic shifts, outdated housing production models, and systemic fiscal pressures—through honest conversations, shared commitment, and a willingness to embrace compromise. Only by addressing these underlying issues can we create lasting solutions that secure Vermont’s economic future.  

Now, more than ever, our collective future depends on embracing a growth mindset—one that moves beyond partisan divides to unite us in pursuit of a more affordable and sustainable Vermont. The data is unequivocal: Vermonters overwhelmingly support policies that promote growth and opportunity. The road ahead may be challenging, but with bold action, informed strategy, and a unified vision, our future is abundant. Let’s work together to ensure that Vermont remains a place where businesses thrive, communities prosper, and every individual has the opportunity to succeed. 

Member-Driven, Data-Informed: Shaping Vermont’s Future

Our work is both member-driven and data-informed. Thoughtful, evidence-based policies are key to reducing costs, growing our economy, and creating opportunities for all Vermonters. The data visualizations below highlight critical trends—from housing shortages and demographic shifts to escalating healthcare costs—that underscore the challenges we face. At the Vermont Chamber of Commerce, we know that these issues do not rest on the shoulders of any one party, organization, or community alone. By collaborating and using data as our guide, we can advocate for solutions that make a real difference for every Vermonter.

 

 

 

Op-Ed: Strength in Service: Unlocking Opportunity with Military Pension Benefits 

Strength in Service: Unlocking Opportunity with Military Pension Benefits

This Op-Ed is by Amy Spear, President of the Vermont Chamber of Commerce

Vermont stands at a pivotal moment in its economic and demographic evolution. As our state grapples with an aging population and an increasing need for a vibrant, skilled workforce, we must leverage every opportunity to build a stronger future. Military retirees represent one such opportunity—a group renowned not only for their exceptional skills and discipline, but also for their potential to invigorate local communities.

Historically, Vermont has been an outlier among states when it comes to taxing military pensions. While many neighboring states offer full exemptions, Vermont currently exempts only the first $10,000 of military retirement pay for residents whose incomes fall below modest thresholds. This limited exemption contradicts our goal of creating a welcoming environment. Compared to states like New Hampshire and Maine—both ranked among the top 10 for military retiree benefits—Vermont remains the worst state for our veterans, sending a discouraging message to those who have served our nation.

Data shows that military retirees are not only experienced professionals but also bring steady incomes and an unwavering commitment to community service. In fact, 70% of these individuals are between the ages of 35 and 50, often continuing to contribute to the workforce in civilian roles well after their military service ends. Their ongoing economic activity strengthens local economies and expands the tax base—benefits that far outweigh the estimated $4 million in foregone revenue from a full exemption.

The demographic stakes are high. Vermont’s veteran population is declining at a rate of 2.7% annually, compared to a national decrease of 1.6%. This trend is most pronounced among those aged 40 to 64, the very group poised to benefit from and contribute to a more inclusive pension exemption policy. By aligning our tax policies with those of our peers, we not only honor the service of military retirees but also position Vermont as a destination for a skilled, diverse, and dynamic workforce.

This policy change is a key element of the Vermont Economic Action Plan, which focuses on two main pillars: Expansion—growing our population and housing—and Efficiency—regulatory streamlining and fiscal responsibility. Integrating a full state income tax exemption for military retirees and their survivors into this framework will strengthen our communities, enhance our workforce, and advance the Vermont economy.

The Vermont Chamber of Commerce remains steadfast in its support for removing state taxation on military retirement pay and survivors benefits.  Creating a tax environment that respects and rewards service will not only attract military retirees but also contribute to a broader, more resilient economic landscape in Vermont.

Call to Action
As state lawmakers from across the political spectrum show growing support for this measure, we encourage all Vermonters to recognize the benefits of welcoming our military retirees. More people need Vermont, and Vermont needs more people—especially those who have served our country with honor and distinction.

Now is the time to act. We encourage Vermonters to reach out to their legislators—by calling, emailing, or meeting with them—and ask for S.17 and H.43 to be enacted this legislative session. Every voice matters in shaping a future where Vermont honors and supports those who have served our nation.

Lawmakers Weigh Housing Solutions to Address Affordability and Infrastructure Needs

Lawmakers Weigh Housing Solutions to Address Affordability and Infrastructure Needs

The House General and Housing Committee continued its review of strategies to address Vermont’s housing challenges while also supporting sustainable development. Legislative hearings throughout the week brought together policymakers and industry experts to examine proposals aimed at modernizing housing stock, improving rental conditions, and investing in infrastructure to bolster long-term growth.

Central to the discussion was the Vermont Rental Housing Improvement Program (VHIP), which provides grants and forgivable loans to rehabilitate or create rental units. Lawmakers highlighted its role in increasing housing opportunities for individuals exiting homelessness, participants in resettlement programs, and people with disabilities. Stakeholders also examined the Vermont Manufactured Home Improvement and Repair Program, which would direct financial assistance to manufactured homeowners and park owners to support critical repairs and improvements.

Infrastructure investment was another key focus, with the proposal to establish a Vermont Infrastructure Sustainability Fund to support municipal water, sewer, and public infrastructure projects that enable housing development. Lawmakers also discussed the formation of a Residential Universal Design Study Committee to explore statewide accessibility standards for residential construction.

Beyond funding programs, the hearing included conversations on streamlining the appeals process for housing projects, municipal appeal standing, and the potential creation of a state land bank. Additional discussions touched on virtual group net metering, efficiency utilities, and brownfield redevelopment as part of a broader effort to modernize housing policy. The path forward for project-based Tax Increment Financing (TIF) and other widely supported proposals remains uncertain.

The committee is expected to refine these proposals prior to crossover, weighing funding allocations and regulatory reforms that will shape Vermont’s housing landscape. The Vermont Chamber will continue engaging with lawmakers to ensure that any final legislation includes targeted investments and policy solutions that support housing growth while strengthening Vermont’s economy.

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Senate Committee Weighs Labor Bill Provisions with Significant Business Impacts

Senate Committee Weighs Labor Bill Provisions with Significant Business Impacts

The Senate Economic Development, Housing, and General Affairs Committee is evaluating proposals put forward for potential inclusion in an omnibus labor bill that could introduce substantial changes to Vermont’s employment laws. The proposals range from minor technical adjustments to major shifts that may increase labor costs and regulatory obligations for employers. The Vermont Chamber is analyzing the provisions to assess their potential impact on businesses and economic growth. Some key provisions under consideration include:

  • Minimum Wage Increase – Raising the minimum wage to $18.60 per hour by January 1, 2026. This increase may lead to higher consumer prices, compressed wage differentials, and hiring challenges.
  • Overtime Expansion – Extending overtime eligibility to certain lower-salaried executive, administrative, and professional employees could increase payroll costs and limit scheduling flexibility.
  • Vacation Leave Payout – Requiring employers to compensate any departing employees for unused vacation leave may create cash flow challenges, especially for businesses with staff who accrue significant leave balances.
  • Workers’ Compensation Changes – Including health insurance in the definition of wages for workers’ compensation could result in higher insurance premiums for employers.
  • Prevailing Wage & Payroll Record Requirements – Amending prevailing wage standards for state construction projects would raise wage and benefit costs while mandating additional payroll recordkeeping and enforcement measures. These changes may disproportionately affect small contractors and subcontractors and raise concerns for migrant workers.
  • Employer Mandates & Workplace Standards – Establishing a “good cause” standard for termination may limit employer flexibility in managing their workforce and increase legal risks. Restricting noncompete agreements could make it harder for businesses to protect proprietary information and maintain workforce stability. Additionally, requiring that employers provide accommodations to sit in the workplace could necessitate new workplace modifications.

These provisions, if enacted collectively, could create significant compliance burdens, increase operational costs, and reduce employer flexibility. With rising costs, higher taxes, and significant labor law changes enacted in the last legislative biennium, lawmakers must consider the cumulative impact of these financial and regulatory pressures on Vermont businesses.  The Vermont Chamber will continue advocating for modifications to mitigate unintended consequences for Vermont businesses and is actively engaging with policymakers to ensure that any changes to labor laws support economic growth while balancing employee protections.

 

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Draft Bill Unveils Bold New Blueprint for Vermont’s Education Finance System

Draft Bill Unveils Bold New Blueprint for Vermont’s Education Finance System

Taking a step forward in efforts to modernize Vermont’s education funding, the House and Ways and Means Committee has begun reviewing newly released draft bill language outlining a comprehensive overhaul of the state’s property tax framework, based on the Administration’s proposal.

Redefining the Tax Landscape
At the heart of the proposal is a statewide education tax that applies uniformly to both homestead and non-homestead properties. Unlike the current system—which relies on a fixed base rate for non-homestead properties—the new approach ties the tax rate to an annually adjusted per-pupil “base amount” of $13,079. This shift is designed to account for forecasted revenues and ensure that education spending keeps pace with the evolving fiscal environment. Under the revised framework, the Commissioner of Taxes will calculate the appropriate rate for each municipality, and property tax bills will provide a detailed breakdown of the calculations, reinforcing a commitment to transparency.

A Closer Look at School District Funding and the State Guarantee
The draft bill introduces a “State Guarantee” mechanism intended to level the funding playing field among school districts. By comparing each district’s taxable property wealth per student to the state median, districts with lower local resources stand to receive substantial state support. The guarantee is calculated by applying a specific “State Guarantee Rate”—defined as one minus the ratio of a district’s equalized property tax grand list per-pupil to that of the median district—to the district’s approved spending. This targeted measure is designed not only to bolster districts that traditionally face fiscal challenges, but also to maintain local decision-making power in setting school budgets.

Ensuring Equity and Relief for Homeowners and Renters
The proposal further refines property tax relief by replacing the existing income-based property tax credit with a more progressive homestead exemption system. The new structure is tiered by income, promising greater relief for low- and moderate-income households. Additionally, for those with high property values relative to income, the draft includes provisions for a property tax deferral program—a model inspired by similar initiatives in states like Maine, Minnesota, and Oregon—allowing eligible homeowners to postpone a portion of their tax burden until a change in ownership occurs.

Safeguarding the Education Fund and Streamlining Administration
Revenue generated by the statewide education tax will flow into an Education Fund dedicated to covering the per-pupil base amount and the state guarantee. To ensure fiscal prudence, statutory reserve levels will be maintained at five percent, and strict administrative protocols will be enforced. Municipalities, in coordination with the Commissioner of Taxes, will play a critical role in billing, collecting, and remitting funds, all while adhering to robust penalties for any fraudulent claims.

Looking Ahead
As discussions continue, the Vermont Chamber will remain engaged in the conversation, ensuring that the impact on commercial and industrial properties is carefully balanced with the broader goals of funding a high-quality education system.

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Legislators Advance Housing Solutions to Support Economic Growth

Legislators Consider Housing Solutions to Support Economic Growth

This week, legislators continued to explore approaches to address Vermont’s housing needs while bolstering economic growth statewide. During a Senate Economic Development, Housing and General Affairs Committee session, industry experts examined offsite construction for modular housing. The hearing detailed offsite building techniques, highlighting both cost efficiencies and operational challenges, while state officials stressed the importance of land factors and ongoing housing operations. The testimony concluded by outlining potential solutions and policy reforms needed to support sustainable housing development.

Parallel discussions centered on modernizing Vermont’s housing stock and infrastructure, with the Vermont Housing Improvement Program (VHIP) at the forefront. VHIP has successfully funded the rehabilitation of more than 1,000 housing units through a combination of grants and loans. Despite challenges such as fluctuating fair market rents and high costs associated with accessory dwelling unit projects, lawmakers remain committed to refining strategies that support a robust and accessible housing market for Vermonters.

The House Commerce and Economic Development and House General and Housing Committees are evaluating proposals to modernize community development financing. Two initiatives—the Housing Infrastructure Initiative (HIT), championed by Let’s Build Homes, and the Administration’s Strategic Projects for Advancing Rural Communities (SPARC) proposal—were discussed as potential new development financing tools that compliment Vermont’s traditional financing model of Tax Increment Financing (TIF). Both proposals offer streamlined structures and enhanced technical assistance for local municipalities, aiming to better support community needs. While concerns were expressed regarding rural feasibility and impacts on local resources, proponents detailed comprehensive financing and technical assistance strategies to alleviate these challenges.

Housing committees do not appear to be taking up the Administration’s omnibus housing bill. Instead, they plan to incorporate select elements into new committee housing bills. Ensuring that any final legislation includes strategic funding, robust infrastructure support, and targeted regulatory relief is critical. As both House and Senate committees continue to refine omnibus housing bills, the Vermont Chamber will continue working with lawmakers to integrate these forward-thinking proposals that equip communities and developers with tools to address Vermont’s housing crisis.

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