VT S0240

Authorizes the State Treasurer to issue $50,000,000 in one-time bonds in fiscal year 2027 to create the Vermont Housing Production Revolving Fund for purchasing or developing State-owned multifamily affordable housing.

Targets households earning up to 150% of area median income, with housing units to remain affordable in perpetuity and be administered by the Vermont Department of Housing and Community Development.

Caps rent at 30% of household income with annual increases limited to 3%, and tenants cannot be removed for earning above income thresholds after initial placement or evicted without cause.

Establishes the Fund as a revolving loan mechanism where principal, interest, and fee payments are retained to issue future loans, with the Treasurer authorized to offer subsidies including lower interest rates and partial loan forgiveness.

Exempts State-owned housing properties from all state and local taxes, though the Department may make payments in lieu of taxes for services provided to the housing projects.