House passes FY2024 budget adjustment including new eviction-prevention funding

The House on Friday passed H.839, a fiscal year 2024 budget adjustment that adds funding for programs aimed at reducing evictions and stabilizing housing. Supporters said the bill combines direct rental-arrearage payments with eviction-diversion services and a pilot program to provide tenants with legal representation in court.

Member from Waterbury, speaking in favor of the bill, outlined three housing-related elements included in H.839: "The first thing is that it provides $2,500,000 that would go out to property owners," a rental-arrearage fund intended to keep tenants in place by paying past-due rent directly to landlords. He added the bill appropriates "$400,000 to the Champlain Valley Office of Economic Opportunity" for rental housing stabilization and eviction-diversion services, and "$1,000,000 that's being appropriated to legal aid for this program," a pilot in two counties to fund attorneys for tenants in eviction court.

Supporters said the combination of these measures is intended to address eviction drivers and level the legal playing field: "80% of the tenants who go into eviction court do not have legal services at all," the Member from Waterbury said, and he cited testimony and research suggesting that these approaches can prevent a large share of evictions. "Up to 70% of evictions can be, prevented through these programs," he said, describing the potential statewide impact if the pilot and programs are effective.

Opponents and questioners on the floor raised concerns about impacts on small landlords and the source of one-time versus ongoing revenues. A Member from Northfield asked whether smaller property owners were considered; the presenter said the programs aim to "make a property owner or a landlord whole financially," noting that payments go directly to owners rather than tenants. Committee and fiscal leaders explained that the BAA uses a mix of newly forecast revenue increases, transfers, and reversions from prior years to balance FY24 and that some of the forecast upgrades are one-time resources.

Representative Burdett of West Rutland offered, then withdrew, a small-dollar amendment related to a per-night rate in one program; during his remarks he said he wanted to "reduce the amount from $75 down to $50," but asked leave to withdraw the amendment and withdrew it without objection.

The House approved H.839 by voice vote after the debate; the presiding officer announced "the ayes do have it," and the bill passed. The appropriations described in the bill include an allocation to the Vermont State Housing Authority to administer the rental-arrearage program, a grant to Champlain Valley Office of Economic Opportunity for diversion services, and a two-county Legal Aid pilot expected to begin this summer to test tenant representation in eviction court.

What happens next: H.839 passed the House and, per standard procedure for budget adjustments, moves forward with its adoption and implementation steps coordinated with administering agencies and the Legislative Fiscal Office. The exact start dates and county selections for the Legal Aid pilot were described as a summer start and as part of implementation planning in committee testimony.