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NO. 116.  AN ACT RELATING TO RESIDENT OWNERSHIP OF MOBILE HOME PARKS AND AFFORDABLE HOUSING DEVELOPMENT.

(H.777)

It is hereby enacted by the General Assembly of the State of Vermont:

Sec. 1.  9A V.S.A. § 9-311(a)(2) is amended to read:  

(2)  the following statutes of this state: 9 V.S.A. chapter 72 and 23 V.S.A. chapters 21 and 36; or

Sec. 2.  11 V.S.A. § 1589(a) is amended to read: 

(a)  Within two years after issuance of the certificate of incorporation of a cooperative housing corporation, the cooperative housing corporation shall secure memberships or subscription agreements representing no less than 80 percent of the units in the cooperative housing corporation.  In the case of a conversion, other than a conversion of a mobile home park, subscription agreements representing no less than 50 percent of the units in the proposed cooperative housing corporation shall be secured prior to issuance of the certificate of incorporation, provided that at the expiration of the two-year period after issuance of the certificate of incorporation or at the expiration of the notice periods provided to tenants at 27 V.S.A. § 1333, whichever comes later, no fewer than 80 percent of the units in the cooperative housing corporation shall be occupied by members, occupied by sublessees permitted under subdivision 1599(1) of this title, or subject to subscription agreements.  In the case of a conversion of a mobile home park, subscription agreements representing no fewer than 25 percent of the units in a proposed cooperative housing corporation shall be secured prior to issuance of the certificate of incorporation, provided that at the expiration of the two-year period after issuance of the certificate of incorporation or at the expiration of the notice periods provided to tenants pursuant to 27 V.S.A. § 1333, whichever comes later, no fewer than 80 percent of the units in the cooperative housing corporation shall be occupied by members, occupied by sublessees permitted under subdivision 1599(1) of this title, or subject to subscription agreements.  Extensions of the time limits imposed by this section may be granted by the commissioner of housing and community affairs for cooperative housing corporations containing more than 50 units or for cooperative housing corporations formed in connection with the conversion of a mobile home park.

Sec. 3.  32 V.S.A. § 5830c(c)(1) is amended to read:  

(1)  “Affordable housing” shall be defined by rule adopted by the department of housing and community affairs.  Such The rule shall include the following provisions:

(A)  The income of at least 75 At least 50 percent of the units shall be occupied by households occupying the units shall whose income does not exceed 100 percent of the greater of state or area median income.

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(C)  The affordability of the unit shall be protected for a period of time not less than the term of any loan made pursuant to subdivision (d)(4) of this section for the unit or units or at least 40 15 years, whichever is greater, through a housing subsidy covenants covenant or through other legally binding instruments instrument, which shall terminate upon the issuance of a judgment of foreclosure or a transfer of the property in lieu of foreclosure.  Such This rule may also include additional provisions consistent with this section.

Sec. 4.  32 V.S.A. § 5830c(d) is amended to read:

(d)  Eligibility.  Any organization seeking eligibility shall apply to the commissioner of housing and community affairs, who is authorized to issue certificates of eligibility for tax credits to eligible housing charities in specific amounts.  In no event shall certificates of eligibility for tax credits for charitable investments be issued in excess of $5,000,000.00 in the aggregate for any fiscal year.  The commissioner by rule shall establish procedures and criteria for application to ensure the equitable distribution of tax credit certificates among eligible applicants.  Subject to this limit, the commissioner shall issue a certificate of eligibility to receive tax credit investments to an organization if it meets all of the following criteria:

* * *

(4)  At least 70 percent of all investments subject to this section are disbursed within 12 months either for:

(A)  the acquisition, rehabilitation, or construction of affordable housing in Vermont by the eligible housing charity,; or

(B)  for loans for affordable housing in Vermont to other eligible housing charities; or

(C)  loans to individual borrowers in Vermont having no more than 80 100 percent of median income, of the state or area, whichever is greater.

(5)  Loans of charitable investments made pursuant to subdivision (4) of this subsection shall be at an average rate of interest at or below not more than two percent above the most recent bank prime loan rate.

(5)(6)  It can demonstrate that it has the administrative capacity to segregate funds to comply with and account for the requirements of subdivision (4) of this subsection.

Sec. 5.  27A V.S.A. § 1-209 is added to read:  

§ 1-209.  SMALL CONDOMINIUMS; EXCEPTION

A condominium that will contain no more than 12 units and is not subject to any development rights, unless the declaration provides that the entire act is applicable, shall not be subject to subsection 2-101(b), subdivisions 2‑109(b)(2) and (11), subsection 2-109(g), section 2-115, and Article 4 of this title.

Sec. 6.  EFFECTIVE DATE; TRANSITIONAL PROVISIONS 

(a)  This act shall take effect on passage.

(b)  Notwithstanding any prior statutory provision, financing statements filed in connection with manufactured home transactions filed since June 30, 2001 shall be deemed to be effective to perfect a security interest in the manufactured home.

Approved:  April 26, 2006



Published by:

The Vermont General Assembly
115 State Street
Montpelier, Vermont


www.leg.state.vt.us