Vermont § 4686 - Vermont Infrastructure Sustainability Fund

§ 4686. Vermont Infrastructure Sustainability Fund

• (a) Creation. There is created the Vermont Infrastructure Sustainability Fund within the Vermont
  Bond Bank. (b) Purpose. The purpose of the Fund is to provide capital to extend and increase capacity of
  water and sewer service and other public infrastructure in municipalities where lack
  of extension or capacity is a barrier to housing development. (c) Administration. The Vermont Bond Bank may administer the Fund in coordination with and support from
  other State agencies, government component parts, and quasi-governmental agencies. (d) Program parameters. (1) The Vermont Bond Bank, in consultation with the Department of Housing and Community
  Development, shall develop program guidelines to effectively implement the Fund. (2) The program shall provide low-interest loans or purchase bonds from municipalities
  to expand infrastructure capacity. Eligible activities include: (A) preliminary engineering and planning; (B) engineering design and bid specifications; (C) construction for municipal water and wastewater systems; (D) transportation investments, including those required by municipal regulation, the
  municipality’s official map, designation requirements, or other planning or engineering
  identifying complete streets and transportation and transit related improvements,
  including improvements to existing streets; and (E) other eligible activities as determined by the guidelines produced by the Vermont
  Bond Bank in consultation with the Department of Housing and Community Development. (e) Application requirements. Eligible project applications shall demonstrate: (1) the project will create reserve capacity necessary for new housing unit development; (2) the project has a direct link to housing unit production; and (3) the municipality has a commitment to own and operate the project throughout its useful
  life. (f) Application criteria. In addition to any criteria developed in the program guidelines, project applications
  shall be evaluated using the following criteria: (1) whether there is a direct connection to proposed or in-progress housing development
  with demonstrable progress toward regional housing targets; (2) whether the project is an expansion of an existing system; (3) the proximity to a designated area; (4) the project readiness and estimated time until the need for financing; (5) the demonstration of financing for project completion or completion of a project component;
  and (6) the relative need of the community per the housing targets established by the Department
  of Housing and Community Development. (g) Award terms. The Vermont Bond Bank, in consultation with the Department of Housing and Community
  Development, shall establish award terms that may include: (1) the maximum loan or bond amount; (2) the maximum term of the loan or bond amount; (3) the time by which amortization shall commence; (4) the maximum interest rate; (5) whether the loan is eligible for forgiveness and to what percentage or amount; (6) the necessary security for the loan or bond; and (7) any additional covenants required to further secure the loan or bond. (h) Revolving fund. (1) Any funds repaid or returned from the Infrastructure Sustainability Fund shall be
  deposited into the Fund and used to continue the program established in this section. (2) The Bank may use the funds in conjunction with other Bank programs to accomplish the
  policy objectives outlined in this section. (Added 2025, No. 69, § 3, eff. July 1, 2025.)