VT H0378

Establishes a Housing Infrastructure Tax Increment Financing (TIF) program allowing municipalities to retain up to 80% of education and municipal property tax increments for up to 20 years to fund infrastructure that stimulates housing development

Requires housing development sites to be located in designated Tier 1 areas, areas exempt from Act 250, existing settlements, or within one half-mile of existing settlements, with at least 50% of projected development dedicated to housing

Vermont Economic Progress Council must approve applications and certify substantial completion (50% of projected housing) before municipalities can begin retaining tax increments

Municipalities must incur debt within two years of creating a housing development site, require voter approval for borrowing, and submit annual reports and audits to the Council and Department of Taxes

Eligible infrastructure improvements include utilities, transportation, public facilities, land acquisition, brownfield remediation, site preparation, and flood mitigation, with debt service interest payments fundable for up to three years