Vermont S 240: An act relating to expanding access to Medicaid and Dr. Dynasaur

Bill Text

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VT LEG #385884 v.1
S.240 1
Introduced by Senator Vyhovsky 2
Referred to Committee on 3
Date: 4
Subject: Executive; Office of the State Treasurer; housing; bonds 5
Statement of purpose of bill as introduced: This bill proposes to authorize the 6
State Treasurer to issue one-time bonds in the sum of $50,000,000.00 to 7
purchase or develop State-owned affordable housing projects to be 8
administered by the Vermont Department of Housing and Community 9
Development. 10
An act relating to developing State-owned affordable housing 11
It is hereby enacted by the General Assembly of the State of Vermont: 12
Sec. 1. 3 V.S.A. chapter 18A is added to read: 13
CHAPTER 18A. VERMONT HOUSING PRODUCTION REVOLVING 14
FUND 15
§ 540. VERMONT HOUSING PRODUCTION REVOLVING FUND 16
(a) Establishment; purpose. There is created a special fund to be known as 17
the Vermont Housing Production Revolving Fund, administered by the Office 18
of the State Treasurer, for the purpose of providing perpetual affordable 19
housing to households with low and moderate income. 20

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VT LEG #385884 v.1
(b) Funds. 1
(1) The Vermont Housing Production Revolving Fund shall be funded 2
by the issuance of bonds, notes, and other obligations as authorized by 3
subsection (c) of this section. 4
(2) The Treasurer shall retain payments of principle, interest, and any 5
fees in the Fund, the amounts of which the Treasurer shall use to issue future 6
loans through the Fund. 7
(3) The Treasurer may seek and accept gifts, donations, and grants from 8
any source, public or private, to be dedicated for deposit into the Fund. 9
(4) All interest earned on Fund balances shall be credited to the Fund. 10
(c) Bonds. 11
(1) The Office of the State Treasurer may issue one-time bonds, notes, 12
or other obligations in the amount of $50,000,000.00, in fiscal year 2027, to 13
fund the Vermont Housing Production Revolving Fund. 14
(2) The funding from the bonds, notes, or other obligations issued under 15
this subsection shall be for the purposes established in this section. 16
(d) Project criteria. 17
(1) The Office of the State Treasurer shall use the funds raised to 18
purchase or develop multifamily housing units to be administered by the 19
Vermont Department of Housing and Community Development as outlined in 20

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VT LEG #385884 v.1
3 V.S.A. chapter 47, subchapter 7 that serve households with low and 1
moderate income into perpetuity. 2
(2) As used in this section, “households with low and moderate income” 3
means housing units affordable to a household earning up to 150 percent of the 4
applicable area median income. 5
(3) Housing units purchased or developed under this chapter shall be 6
owned by the State of Vermont. 7
(e) Loans; eligibility; criteria. 8
(1) The Office of the State Treasurer shall adopt processes, procedures, 9
and guidelines to issue proceeds consistent with this section, including a 10
simple application process that is accessible to developers, builders, and 11
contractors. 12
(2) The Office of the State Treasurer shall determine the term and 13
interest rate of loans issued from the Fund. Interest rates shall not exceed a 14
rate necessary, when combined with any rents, to pay for the debt service on 15
the bonds issued to capitalize the Fund. 16
(3) The Treasurer may adopt one or more mechanisms to provide 17
enhanced subsidy to incentivize projects, including: 18
(A) a lower interest rate; 19
(B) an interest-only option with deferred principal repayment; and 20
(C) partial loan forgiveness. 21

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(4) The Treasurer shall use one or more legal mechanisms to ensure that 1
a subsidized loan for housing remains affordable to a household earning the 2
applicable percent of area median income as outlined in this section. 3
(f) Program design. 4
(1) The Office of the State Treasurer shall consult with stakeholders and 5
experts in the field prior to issuing funds from the Vermont Housing 6
Production Revolving Fund. 7
(2) The Treasurer shall: 8
(A) develop a streamlined and appropriately scaled application 9
process; 10
(B) develop an outreach and education plan, including specific tactics 11
to reach and support eligible applicants, especially those from underserved 12
regions or sectors; and 13
(C) develop an equitable system for distributing investment statewide 14
on the basis of need according to a system of priorities that includes 15
consideration of: 16
(i) geographic distribution; 17
(ii) community size; 18
(iii) community economic need; and 19
(iv) whether an applicant has already received an investment or is 20
from an applicant in a community that has already received funding. 21

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(3) The Office of the State Treasurer shall use its best efforts to ensure 1
that: 2
(A) investments are targeted to