Gov. Phil Scott indicated Tuesday he opposes a wide-ranging housing bill that Democratic leaders plan to bring up during this week’s veto session.
During a press conference on Tuesday, Scott raised concerns about a rental registry proposed in the bill, S.79, which sets up a statewide system to enforce property safety standards.
“It creates more bureaucracy, it creates more expense on the state level, millions of dollars, and I don’t think that we’ve fully contemplated how much that will in effect cost us,” Scott said. “I think it’s the wrong time to do this, but again, we’ll see what happens if they push forward on it.”
Republican lawmakers, who blocked the legislation from passing before the Legislature adjourned in May, have criticized the cost of the proposed rental registry and statewide inspection program.
The state already has rental safety codes, but they are typically regulated on the local level by town health officers, who have many other duties.
The bill would establish five new positions in the Division of Fire Safety to conduct rental housing inspections and 1.5 positions in the Department of Housing and Community Development to administer the registry. The positions would be funded by an annual $35-per-unit fee paid by property owners who register with the state.
The fees would be expected to raise between $1.3 million and $1.7 million a year, according to Vermont’s Joint Fiscal Office.
Democrats have pushed the legislation to improve protections for renters.
“We know that we have people across the state that are living in substandard housing. This is a step that we can take to actually make sure that, when somebody offers a property for rent, it is safe and habitable,” Senate President Pro Tempore Becca Balint, D-Windham, said in an interview last week.
The Vermont House already passed the bill, but the legislation still needs a vote in the Senate (where it’s expected to pass) before it reaches Scott’s desk.
In addition to the statewide inspection program and rental registry, S.79 contains funding for programs aimed at expanding the housing stock and homeownership in Vermont.
Landlords could receive grants of up to $30,000 to fix up existing properties; a fund would provide no-interest $50,000 loans for first-time homeowners.
While Scott criticized the proposal, it’s still unclear whether he plans to veto the legislation. His spokesperson, Jason Maulucci, noted that the bill includes “policy language for housing initiatives we support,” such as the Vermont Housing Investment Program, which would provide the $30,000 loans.
“I understand that the Senate might be voting on amendments to the bill prior to its potential passage during the veto session, so the governor will need to see a final bill before making his decision,” Maulucci said.
“Depending on what the final bill looks like and if it does pass, like always, he will weigh the benefits and costs to the proposal before deciding whether to sign or veto the bill,” Maulucci added.
During this week’s session, which begins on Wednesday, Democratic legislators will also attempt to override the governor’s vetoes of three bills: two proposed charter changes that would allow noncitizens to vote in local elections in Winooski and Montpelier, and a bill that would have shielded the records of young adults accused of certain crimes from public disclosure.
On Tuesday, Scott said he thinks the votes during the veto session will be “very close,” but the outcome is “not a life-and-death situation.”
“I might have felt different, maybe pre-pandemic, about these vetoes in terms of whether you win or lose,” Scott said.
“I’m competitive like anyone else, but after what we’ve been through over the last 15 or 16 months, regardless of what happens whether they’re overridden or sustained, life will go on,” Scott said.
