House lays groundwork for decade-long housing plan; H.829 proposes modest first-year investments and new revenue measures

House committees presented H.829 as a multi-part housing framework that establishes long-term goals and modest initial investments to expand affordable housing, stabilize tenancies and fund supportive services.

General and Housing committee members described H.829 as a 10-year planning and spending roadmap that would preserve and expand successful programs such as the Vermont Housing Improvement Program (VHIP), the Vermont Housing and Conservation Board (VHCB) and the Vermont Housing Finance Agency (VHFA) initiatives. The committee emphasized preservation, adaptive use of VHIP for accessible units, and programmatic flexibility for administration and matching.

Human Services amendments added priorities for eviction prevention, tenant legal services and resident supports, including language to allow youth-service master leases and to direct some resident services funds toward nonprofits that operate housing portfolios serving people experiencing homelessness.

Ways and Means proposed a revenue package to support the long-term plan rather than fully fund it in year one. That package includes restructuring the real-estate transfer tax brackets (adding a higher marginal rate on values above specified thresholds and indexing brackets) and a reinstated 5th marginal personal income tax bracket on incomes over $500,000. Ways and Means estimated the transfer-tax changes would raise about $17.5 million for housing starting in FY25 and the new top income tax rate would yield approximately $74.9 million in FY26.

Committee chairs emphasized the phased approach: modest direct appropriations in the near term (for VHIP administration and projects, VHCB capacity, refugee housing support, resident services, and shelter operations) alongside statutory intent language for larger future appropriations (an illustrative $900 million over fiscal years 2026'34 as available). The bill was presented with multiple committee votes in favor; work remains on exact thresholds and distribution formulas.

What it would do next: The bill as amended sets policy priorities and indicates the Legislature's intent to pursue sustained funding. Committees indicated they will refine bracket thresholds and statutory allocations and that the bill requires coordination across VHCB, VHFA, DHCD and the Joint Fiscal Office for implementation and fiscal notes.

Status: H.829 received committee reports and floor presentation; further floor amendment and votes were pending at recess.