|BILL AS INTRODUCED||2007-2008|
Introduced by Representatives Marcotte of Coventry, Acinapura of Brandon, Baker of West Rutland, Bissonnette of Winooski, Canfield of Fair Haven, Clerkin of Hartford, Condon of Colchester, Consejo of Sheldon, Howrigan of Fairfield, Keenan of St. Albans City, Kitzmiller of Montpelier, Livingston of Manchester, Morley of Barton, Shand of Weathersfield and Wright of Burlington
Subject: Housing; new neighborhood initiative; affordable housing development
Statement of purpose: This bill proposes to create a program within the agency of commerce and community development to stimulate the development of affordable and moderately priced housing within or in close proximity to similarly developed areas.
AN ACT RELATING TO NEW NEIGHBORHOOD INITIATIVE FOR HOUSING DEVELOPMENT
It is hereby enacted by the General Assembly of the State of Vermont:
Sec. 1. 10 V.S.A. chapter 18A is added to read:
CHAPTER 18A. NEW NEIGHBORHOOD INTITIATIVE
§ 401. PURPOSE AND CREATION OF THE NEW NEIGHBORHOOD INITIATIVE
(a) The new neighborhood initiative is created to meet better the state’s housing needs with a thoughtful, planned approach, and to promote new housing development that is proximate to existing housing with comparable density and affordability and to ease the pressure on the rental housing market in order to make more lower-priced housing available for ownership.
(b) The new neighborhood initiative is created and shall be administered by the secretary of commerce and community development. The secretary shall facilitate residential housing development in new neighborhoods within or adjacent to a community core within a municipality that has permanent zoning and subdivision regulations in place.
§ 402. DESIGNATION OF NEW NEIGHBORHOODS
A municipality shall make an application for a new neighborhood designation to the Vermont downtown development board, established in chapter 76A of Title 24. The board shall grant the designation based on the applicant’s compliance with the following requirements:
(1) The land proposed for the residential housing development shall be located in an area designated for dense housing growth pursuant to regional and town plans and local zoning ordinances.
(2) The land proposed to be designated a new neighborhood has been recommended by the applicable regional planning commission and approved by the zoning board following a public process consistent with a change in the zoning ordinances.
(3) The density of the proposed housing development is comparable to or greater than adjacent housing development.
(4) The proposed housing development meets the definition of “neighborhood” as defined by rule by the secretary and is in compliance with key features, including affordability, location, and density.
(5) The number of housing units in a new neighborhood project shall not exceed the lesser of 100 or the number calculated based on two residential housing units per 100 residents of the municipality at the time of designation.
§ 403. INCENTIVES FOR NEW NEIGHBORHOODS
Designation as a new neighborhood pursuant to section 402 of this title shall provide the following benefits:
(1) The residential housing development shall be exempt from Act 250 review provided the municipality has a municipal plan, zoning ordinances, and subdivision regulations that permit or require higher density housing growth and the proposed housing development is adjacent to established housing or other development that is within or contiguous to a growth center, designated downtown, designated village center, or the core developed area of the municipality.
(2) A rebuttable presumption is created in regard to all state and local regulatory proceedings that the proposed housing in the new neighborhood project is the highest and best use for the area that is designated for dense housing development by the regional and town plans.
(3) The sale of the land to a buyer who will develop affordable and moderately priced housing on the land shall be exempt from state land gains tax, provided the seller receives written certification from the secretary that the sale and development of the land are consistent with the requirements of the new neighborhood initiative.
(4) The municipality in which a new neighborhood project is authorized may retain and reallocate for three years the state education tax portion of the property tax on the increased grand list value of the home and lot for housing units constructed as part of the new neighborhood project, provided that it does not exceed the maximum price considered affordable by the Vermont housing finance agency. The municipality may use those reallocated tax revenues for any municipal purpose directly or indirectly related to the project.
The Vermont General Assembly
115 State Street