The House gave preliminary approval Wednesday to a bill that aims to revitalize downtowns by investing in workforce housing that is “perpetually affordable” for middle-class Vermonters.
The vote was 139-3.
The bill, H.865, would invest $1 million from the Agency of Human Services into the Vermont Housing and Conservation Board with the express purpose of funding two pilot housing projects in the state.
The bill also offers millions in tax credits over the next 10 years to assist homebuyers across the state.
It would also extend the first-time homebuyer down payment assistance program to provide help for Vermonters with initial housing costs.
Rep. Tom Stevens, D-Waterbury, said the assistance program has been successful since its rollout last year, offering 49 no-interest loans across 11 counties to homebuyers with an average age of 30. Legislators said the loan budget of $625,000 could assist roughly 120 homebuyers a year.
If signed into law, the loan program would be extended by four years and would last until 2022.
“The workforce housing pilot program and investments in down payment assistance are smart investments for Vermont’s future,” said House Speaker Shap Smith after the vote. “I applaud this step to help Vermonters achieve the American Dream.”
Five amendments were tacked onto the bill. The amendments came from various committees and laid out specific tax credit numbers and housing requirements for the affordable units.
An amendment to the bill from Stevens lays out income eligibility requirements for the occupants. The units would be occupied by a mixture of lower- and middle-income residents.
The total cost of the apartments for residents would not be more than 30 percent of a family’s annual income.
One amendment, proposed by Reps. Mitzi Johnson, of South Hero, and Bill Lippert, of Hinesburg, calls for an analysis and report on the current functionality and sustainability of Vermont Health Connect. The report is due by December and is estimated to cost $400,000.
