Vermont S 296: An act relating to jurisdiction in juvenile proceedings

Bill Text

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VT LEG #385749 v.2
S.296 1
Introduced by Senator Harrison 2
Referred to Committee on 3
Date: 4
Subject: Taxation and finance; education property tax; tax increment 5
financing; municipal and county government; indebtedness; 6
Community and Housing Infrastructure Program; development 7
agreement 8
Statement of purpose of bill as introduced: This bill proposes to require 9
minimum protections for municipalities in development agreements 10
undertaken for projects financed by tax increment financing, including a tax 11
increment guarantee secured to the satisfaction of the municipality. 12
An act relating to development agreements for tax increment financing 13
It is hereby enacted by the General Assembly of the State of Vermont: 14
Sec. 1. 24 V.S.A. § 1902 is added to read: 15
§ 1902. DEVELOPMENT AGREEMENT; MUNICIPAL PROTECTIONS 16
(a) Guarantee. A developer for a project financed with tax increment 17
financing shall guarantee in its development agreement with the municipality 18
that the project will generate sufficient tax increment to fund the municipality’s 19
debt service payments on its financing for the project for the duration of the 20

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VT LEG #385749 v.2
TIF district or housing development site. If the developer has no assets of its 1
own, the parent company of the developer that owns project assets shall 2
provide the same guarantee. 3
(b) Security. The guarantee shall be secured to the satisfaction of the 4
municipality and may be evidenced by a letter of credit, performance bond, 5
special assessment lien, mortgage, personal or corporate guarantee, or 6
alternative form of security satisfactory to the municipality. 7
(c) Additional protections. A developer for a project financed with tax 8
increment financing shall additionally provide at least one of the following 9
provisions in its development agreement with the municipality: 10
(1) a protection for the taxable value of the property subject to 11
development, such as casualty insurance, reconstruction in the event of 12
destruction, or a prohibition on contesting the property’s assessed value; 13
(2) a protection to ensure the municipality may proceed with the project 14
on its own in the event of developer failure, such as license or ownership of 15
engineering or architectural plans; or 16
(3) an equity position in the developer, such as through a profit-sharing 17
arrangement. 18
Sec. 2. 24 V.S.A. § 1909 is amended to read: 19
§ 1909. HOUSING INFRASTRUCTURE AGREEMENT 20

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VT LEG #385749 v.2
(a) The housing infrastructure agreement for a housing infrastructure 1
project shall: 2
(1) clearly identify the sponsor for the housing infrastructure project; 3
(2) clearly identify the developer and the housing development for the 4
housing development site; 5
(3) obligate the tax increments retained pursuant to section 1910c of this 6
subchapter for not more than the financing and related costs for the housing 7
infrastructure project; 8
(4) provide that any housing unit within the housing development be 9
offered exclusively as a primary residence until all indebtedness for the 10
housing infrastructure project of which the housing development is part has 11
been retired, provided that this condition shall be satisfied by biennially 12
providing a landlord certificate or homestead declaration; and 13
(5) provide for performance assurances to reasonably secure the 14
obligations of all parties under the housing infrastructure agreement; and 15
(6) comply with the requirements for development agreements pursuant 16
to section 1902 of this title. 17
(b) A municipality shall provide notice of the terms of the housing 18
infrastructure agreement for the municipality’s housing infrastructure project 19
to the legal voters of the municipality and shall provide the same information 20
as set forth in subsection 1910a(e) of this subchapter. 21

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VT LEG #385749 v.2
Sec. 3. EFFECTIVE DATE 1
This act shall take effect on passage. 2