Community Development and Neighborhood Revitalization Committee — Burlington, VT
Date: 2025-06-18
Time: 18:30

Sharon Bushor Conference Room, 1st Floor City Hall
 149 Church Street, Burlington
 Wednesday, June 18, 2025, 6:30 PM

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Meeting ID: 949 3333 9492
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1. Agenda
 1.1. Motion to amend/adopt agenda

2. Adopt Minutes
 Subject 2.1. Approval of 5/1/25 Minutes
 Meeting June 18, 2025 - CDNR Committee Meeting - Wednesday, June 18, 2025, 6:30 PM,
 Sharon Bushor Conference Room, 1st Floor City Hall
 149 Church Street, Burlington


 Category 2. Adopt Minutes

 Department


 Type

 Recommended Action
3. Public Forum
  Subject 3.1. PUBLIC FORUM - Verbal Comments
  Meeting June 18, 2025 - CDNR Committee Meeting - Wednesday, June 18, 2025, 6:30 PM,
 Sharon Bushor Conference Room, 1st Floor City Hall
 149 Church Street, Burlington
  Category 3. Public Forum
  Department


  Type

4. Initial Discussion & Planning: Council on Aging Report referred by City
Council (30 MIN)
  Subject 4.1.

 • Staff/departmental support for the Aging Council’s work
 • Next steps with the Aging Council / appointing members
 • Which recommendations from the report to focus on first



  Meeting June 18, 2025 - CDNR Committee Meeting - Wednesday, June 18, 2025, 6:30 PM,
 Sharon Bushor Conference Room, 1st Floor City Hall
 149 Church Street, Burlington


  Category 4. Initial Discussion & Planning: Council on Aging Report referred by City Council (30
 MIN)

  Department Community & Economic Development Office (CEDO)


  Type

  Recommended Action

5. HTF Reports & Update - Rebeka Lawrence-Gomez, CEDO (45 MIN)
  Subject 5.1.

 • Presentation overview from Rebeka with time for Committee questions,
 feedback, and next steps.



  Meeting June 18, 2025 - CDNR Committee Meeting - Wednesday, June 18, 2025, 6:30 PM,
 Sharon Bushor Conference Room, 1st Floor City Hall
 149 Church Street, Burlington


  Category 5. HTF Reports & Update - Rebeka Lawrence-Gomez, CEDO (45 MIN)

  Department Community & Economic Development Office (CEDO)


  Type

  Recommended Action

6. Initial Discussion & Planning: Syringe Litter Report from Board of Health
referred by City Council (45 MIN)
  Subject 6.1.

 • Which recommendations from the report to focus on first
 • Developing a roadmap to our 9/1 reporting deadline
 • Identifying and Inviting stakeholders for comment and feedback on the
 report throughout our Summer work
 • Dividing responsibilities



  Meeting June 18, 2025 - CDNR Committee Meeting - Wednesday, June 18, 2025, 6:30 PM,
 Sharon Bushor Conference Room, 1st Floor City Hall
 149 Church Street, Burlington


  Category 6. Initial Discussion & Planning: Syringe Litter Report from Board of Health referred by
 City Council (45 MIN)

  Department Community & Economic Development Office (CEDO)


  Type

  Recommended Action

7. Scheduling (5 MIN)

8. Adjournment
  Subject 8.1. Motion to adjourn
  Meeting June 18, 2025 - CDNR Committee Meeting - Wednesday, June 18, 2025, 6:30 PM,
 Sharon Bushor Conference Room, 1st Floor City Hall
 149 Church Street, Burlington


  Category 8. Adjournment

  Department Council and Board


  Type

  Recommended Action

Sharon Bushor Conference Room, 1st Floor City Hall
 149 Church Street, Burlington
 Wednesday, June 18, 2025, 6:30 PM

Join Zoom Meeting
https://zoom.us/j/94933339492?pwd=UjwDuNGxRZJsXwhLOQk3CazpBamIx7.1

Meeting ID: 949 3333 9492
Passcode: 782232

---

One tap mobile
+13092053325,,94933339492#,,,,*782232# US
+13126266799,,94933339492#,,,,*782232# US (Chicago)

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Meeting ID: 949 3333 9492
Passcode: 782232

Find your local number: https://zoom.us/u/aeEkaXIBRO




1. Agenda
 1.1. Motion to amend/adopt agenda

2. Adopt Minutes
 Subject 2.1. Approval of 5/1/25 Minutes
 Meeting June 18, 2025 - CDNR Committee Meeting - Wednesday, June 18, 2025, 6:30 PM,
 Sharon Bushor Conference Room, 1st Floor City Hall
 149 Church Street, Burlington


 Category 2. Adopt Minutes

 Department


 Type

 Recommended Action



 Page 1 of 122
3. Public Forum
  Subject 3.1. PUBLIC FORUM - Verbal Comments
  Meeting June 18, 2025 - CDNR Committee Meeting - Wednesday, June 18, 2025, 6:30 PM,
 Sharon Bushor Conference Room, 1st Floor City Hall
 149 Church Street, Burlington
  Category 3. Public Forum
  Department


  Type

4. Initial Discussion & Planning: Council on Aging Report referred by City
Council (30 MIN)
  Subject 4.1.

 • Staff/departmental support for the Aging Council’s work
 • Next steps with the Aging Council / appointing members
 • Which recommendations from the report to focus on first



  Meeting June 18, 2025 - CDNR Committee Meeting - Wednesday, June 18, 2025, 6:30 PM,
 Sharon Bushor Conference Room, 1st Floor City Hall
 149 Church Street, Burlington


  Category 4. Initial Discussion & Planning: Council on Aging Report referred by City Council (30
 MIN)

  Department Community & Economic Development Office (CEDO)


  Type

  Recommended Action

5. HTF Reports & Update - Rebeka Lawrence-Gomez, CEDO (45 MIN)
  Subject 5.1.

 • Presentation overview from Rebeka with time for Committee questions,
 feedback, and next steps.



  Meeting June 18, 2025 - CDNR Committee Meeting - Wednesday, June 18, 2025, 6:30 PM,
 Sharon Bushor Conference Room, 1st Floor City Hall
 149 Church Street, Burlington


  Category 5. HTF Reports & Update - Rebeka Lawrence-Gomez, CEDO (45 MIN)

  Department Community & Economic Development Office (CEDO)


  Type

  Recommended Action

6. Initial Discussion & Planning: Syringe Litter Report from Board of Health
referred by City Council (45 MIN)



 Page 2 of 122
  Subject 6.1.

 • Which recommendations from the report to focus on first
 • Developing a roadmap to our 9/1 reporting deadline
 • Identifying and Inviting stakeholders for comment and feedback on the
 report throughout our Summer work
 • Dividing responsibilities



  Meeting June 18, 2025 - CDNR Committee Meeting - Wednesday, June 18, 2025, 6:30 PM,
 Sharon Bushor Conference Room, 1st Floor City Hall
 149 Church Street, Burlington


  Category 6. Initial Discussion & Planning: Syringe Litter Report from Board of Health referred by
 City Council (45 MIN)

  Department Community & Economic Development Office (CEDO)


  Type

  Recommended Action

7. Scheduling (5 MIN)

8. Adjournment
  Subject 8.1. Motion to adjourn
  Meeting June 18, 2025 - CDNR Committee Meeting - Wednesday, June 18, 2025, 6:30 PM,
 Sharon Bushor Conference Room, 1st Floor City Hall
 149 Church Street, Burlington


  Category 8. Adjournment

  Department Council and Board


  Type

  Recommended Action




 Page 3 of 122
 CITY OF BURLINGTON, VERMONT
 CITY COUNCIL COMMUNITY DEVELOPMENT &
 NEIGHBORHOOD REVITALIZATION COMMITTEE
 c/o Community & Economic Development Office
 City Hall, Room 32 • 149 Church Street • Burlington, VT 05401
 802-865-7144 VOX • 802-865-7024 FAX • www.burlingtonvt.gov/cedo




Councilor Evan Litwin (EL), Chair, Ward 7
Councilor Carter Neubieser (CN), Ward 1
Councilor Allie Schachter (AS), East District

 CDNR Committee Meeting
 Thursday, May 1st, 2025
 6:00 – 7:30 PM
 Sharon Bushor Conference Room, 1st Floor – City Hall

Committee members: Evan Litwin (EL), Carter Neubieser (CN), Allie Schachter (AS)
City Staff: Christine Curtis, CEDO
Other Attendees:


 Draft Minutes

Meeting Started at 6:07 PM

 1. Approve agenda
 MOTION by Councilor Schachter, SECOND by Councilor Neubieser, to
approve the agenda
VOTING: unanimous; motion carries.

 2. Public Forum
 • No one spoke at public forum

 3. Councilor Neubieser overview and status update on NPA Resolution
 • CN updated the committee on past work on the NPA resolution
 • Draft resolution gives NPAs input on who gets hired for the NPA
 support position in CEDO


 The programs and services of the City of Burlington are accessible to people with disabilities.
 For accessibility information, call 865-7144. For questions about the meeting,
 contact Christine Curtis at ccurtis@burlingtonvt.gov


 Page 4 of 122
 • Defines requirements of the NPAs – CEDO will help train steering
 committee members on their roles
 • CEDO to come up with a standardized process to keep the NPAs
 informed on major city decisions and items that are going to City
 Council

4. CDNR Planning Session and Priorities Discussion including meeting schedule
 • NPA resolution
 • Financial disclosures for City Councilors and Mayor
 • HTF resolution
 • Housing agenda – tenant rights, funding, HTF, IZ, UVM quality
 housing – dorms
 • How to encourage strong neighborhoods? Find more ways to come
 together
 • Graffiti clean-up
 • Housing team to attend meetings
 • Bill Ward to talk about enforcement of problem properties
 • Draft Resolution: fire and police budget – increasing gross receipts
 tax on alcoholic beverages
 • Syringe resolution – report is coming
 • CDNR upcoming schedule: potentially the 3rd Wednesday of every
 month – 6:30-8:30 PM. Committee will finalize schedule over email

5. Adjournment
 • ADJOURN at 7:29 p.m. by Councilor Litwin with no objection




 Page 5 of 122
Comments to the Community Development and Neighborhood Revitalization Committee:

Downtown Burlington is in trouble. The normalization of open drug use and anti-social behavior
is threatening the future of the city. As a property owner in Ward 3, I believe the social
programs operating downtown are acting without concern for the community and the hard-
working tax payers who live and work in the downtown.

Core to my concern as a property owner on Clarke St, is the ungoverned operation of the
syringe distribution program situation on Clarke St. The situation on Clarke St is a disaster which
overflows into the overall downtown area. Residents no longer feel safe. Neighbors avoid
walking the street. Livability on the street has declined as residents and visitors are harassed by
drug addicts. Used and unused syringes litter the city.

The Howard Center has dug in its heals and refuses to acknowledge that it cannot safely operate
its needle distribution program. It is supposed to be a gateway to treatment but it fails at that
objective, with only 1 in 10 visitors entering treatment. Rather it enables drug abuse and
attracts addicts and drug dealers to residential Clarke St and downtown Burlington. The
negative impact of the program far outweighs its benefits.

Residents and property owners of Ward 3 and other downtown districts appear unified in
opposition to the current syringe distribution program and the concentration of ungoverned
social services in the downtown area. The petition I started asking the Howard Center to move
the program has 200 signatures. The Ward 3 NPA does not want the OPC and the Howard
Center program located in downtown. The social support programs must be distributed to
other parts of the city rather than concentrated in the economically vital downtown and in
residential areas.

Planner for the OPC recognize the need to involve the community and consider the impact the
impact of the location. The City Council should require that the Howard Center regain approval
for its current location or find a new location, proceeding in the same manner as the OPC siting
project. The Clarke St residents and property owners will certainly oppose it continuing in its
current location.




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Page 91 of 122
 A Report on Increasing
 Burlington Housing Trust Fund
 Annual Revenue
 Prepared by the Community & Economic Development Office

 May 15, 2025




Report on Increasing BHTF Annual Revenue 1


 Page 92 of 122
Introduction
The Burlington Housing Trust Fund (BHTF) provides grants and loans for the promotion, retention, and
creation of long-term affordable housing within the city. Funds support the creation and rehabilitation
of homes for households with limited financial resources, and the capacity of non-profit organizations
who create or preserve affordable housing.

On February 10, 2025 the City Council of the City of Burlington adopted a resolution requesting the
Community & Economic Development Office (CEDO), in collaboration with the City’s Chief
Administrative Officer, Assessor’s Office, and other city staff identify ways in which the money dedicated
to the Burlington Housing Trust Fund could increase by at least $1 million annually.

History and Purpose
The Burlington Housing Trust Fund (BHTF) was established for the promotion, retention, and creation of
long-term affordable housing for very low, low, and moderate income households. BHTF funds may be
used for the retention or creation of affordable housing (project funding) or to support the operations of
non-profit organizations who are creating or preserving affordable housing (capacity funding).

On June 27, 1988, the Burlington City Council approved an ordinance (Chapter 18 Article VI in the City of
Burlington’s Code of Ordinances) creating the BHTF. The idea of a Housing Trust Fund had initially been
proposed, four years prior, by the City’s Community & Economic Development Office (CEDO). The BHTF
made its first disbursement in November of 1989. A full history of the inception of the Burlington
Housing Trust Fund is captured in a 2020 report entitled Ten-Year Report for the Burlington Housing
Trust Fund.

Non-profit corporations, municipal corporations, limited equity housing cooperatives, for-profit
corporations, partnerships, and individuals are eligible to apply for project funding.

Capacity grants are made for the staffing, training, planning, fundraising, and ongoing operations of non-
profit organizations creating or preserving housing for very low, low, and moderate-income households.

At least 50% of BHTF funds is expended on affordable housing projects – the creation of new affordable
housing, restoration of existing affordable housing or the transformation of existing market-rate housing
to affordable housing. Up to 35% of funds can be distributed as capacity grants to nonprofits who are
creating or preserving affordable housing. Up to 15% of the funds can be expended on the City’s
Community & Economic Development Office’s (CEDO) operation of the trust fund and activities within
CEDO that directly benefit the housing needs of households with very low and low incomes.

The majority of BHTF funding has assisted the City’s nonprofit housing organizations in building
affordable housing.

The Burlington Housing Trust Fund is a restricted municipal account, established outside of the general
budget. Created to provide grants and loans for the preservation and development of low-income
housing, any assets it receives do not revert to the General Fund at the end of the fiscal year. In cities
across the country, housing trust funds are administered either by an established city agency or by an
independent board of trustees.



Report on Increasing BHTF Annual Revenue 2


 Page 93 of 122
Funding for a housing trust fund can come through dedicated income streams, such as repayments of
loans, property taxes, or property transfer taxes; impact fees; sale of city property, the sale of height or
density bonuses, and payments in lieu of actual production of housing units through linkage programs;
inclusionary zoning; or demolition/replacement programs. Details on how the Burlington Housing Trust
Fund is funded are provided below.

Sources of Funding
The Burlington Housing Trust Fund is a special revenue account that is separate from the City’s general
account. Revenue is generated through a dedicated property tax of one cent per hundred dollars ($.01
per $100.00) of assessed property value, Inclusionary Zoning payment in-lieu for projects that opt to pay
a one-time fee to meet requirements rather than including affordable units in a project, a dedicated tax
on short-term rental properties, some impact fees, fees charged for the conversion of rental properties
to condominiums, donations, and any other revenues that may be specifically dedicated to the Housing
Trust Fund (this could come through an update to the City Charter, an ordinance, or by direction of the
City Council).

The revenue for the Burlington
 Burlington Housing Trust Fund FY25 Revenue
Housing Trust Fund will vary annually
 Funding Source FY25 Revenue
– in the 2000s annual revenues rarely
 Dedicated Tax $563,316
exceeded $250,000. With the
 Short-Term Rental Tax* $640,000
implementation of the short-term
 Inclusionary Zoning Payment-in-lieu $140,000
rental tax and a significant number of
payments-in-lieu from the Conversion of rental property to ownership $48,400
inclusionary zoning ordinance, BHTF Replacement Housing Fee $1,186
annual revenue has exceeded Total Anticipated 2025 Revenue $1,392,902.23
$1,000,000 in recent years. *Estimate based on revenue to date




Report on Increasing BHTF Annual Revenue 3


 Page 94 of 122
Funding Prioritization
Funding prioritization is determined by the BHTF ordinance. As noted above funds must be expended
on affordable housing projects making this the priority for the funding; funds may also be expended on
capacity grants for local non-profits and CEDO’s work administering the funds and activities that directly
benefit the housing needs of households with very low and low incomes. Project funding for the
acquisition, construction, rehabilitation and/or financing of housing units is prioritized by projects that
guarantee:

 1. Perpetual affordability of units for very low, low, or moderate income households
 2. A term of affordability for very low, low, or moderate income households between ten to forty
 years with the eventual recapture and return of funds to BHTF.

Grants and Awards
By ordinance, BHTF funding decisions are made through the Housing Trust Fund Administrative
Committee. This committee is composed of the Chair of the Community Development and
Neighborhood Revitalization (CDNR) Committee, CEDO Director, and an appointee of the mayor; the
CEDO Director also serves as the Housing Trust Fund Manager.

CEDO solicits applications for the BHTF awards through an annual request for proposals that is usually
posted in the fall and sent via email to previous applicants, community partners, and anyone who has
indicated interest in the funding.

Applications are collected and scored using a matrix developed by the administrative committee that
includes prioritizations from the ordinance. Committee members review applications and scoring
matrices and meet at a public meeting held at City Hall and online. Applicants are encouraged to join
the meeting to answer questions from committee members and/or elaborate on their projects.

Report on Increasing BHTF Annual Revenue 4


 Page 95 of 122
Awards may be granted at requested funding levels or decreased depending on fund availability and the
prioritization process.

Project applications have ranged from several thousand dollars to assist with repairs to existing units to
more than $1 million to support a large multi-unit building in the City.




Capacity grants are prioritized to organizations that are engaged in the construction of new affordable
housing. Capacity grants for programs or organizations not engaged in the construction of new housing
is currently limited to $10,000 per year.




Report on Increasing BHTF Annual Revenue 5


 Page 96 of 122
Impact
Since its creation in 1989, the Burlington Housing Trust
Fund has provided financial assistance to more than 2200
units. This means that one out of every ten housing units
in Burlington has been supported by the BHTF



Burlington Housing Trust Fund monies have been awarded to a variety of non-profit and affordable
housing developers within the City. The majority of project funds have supported the construction of
new units (838 units); BHTF grants have also created affordable units through the acquisition of market
rate or at-risk units within the City (630 units) and BHTF has funded the rehabilitation of 743 units in
Burlington.




In the last 30 years BHTF has supported a variety of housing projects throughout the city. A small
sample of the projects supported by the BHTF includes:




Report on Increasing BHTF Annual Revenue 6


 Page 97 of 122
 Transitioning Northgate
 Apartments to an
 affordable resident-owned
 rental housing community
 (ensuring the units were
 not sold as condominiums
 market-rate prices)




 Supporting the creation of
 11 Green Mountin Habitat
 for Humanity homes in
 Burlington




 Providing funding for large
 multi-unit buildings such as
 the project currently under
 construction on South
 Winooski Avenue at the
 former VFW site




Report on Increasing BHTF Annual Revenue 7


 Page 98 of 122
Limitations and Concerns
Despite the demonstrated value and benefits to the community of the BHTF, there are concerns about
its future and the future of affordable housing development in Burlington. In particular, the future of
federal funds, which many projects supported by the BHTF leverage, is uncertain and BHTF housing
revenue is increasingly in flux.

At this time, many federal programs that provide financial assistance for affordable housing are at risk of
elimination or significant cuts. Many projects supported by BHTF rely on federal funds to cover a large
proportion of their costs. In the absence of these federal funds, the City would be unable to sustain the
current pace of affordable housing development without significant replacement funding.

In terms of BHTF revenue specifically, two major sources – the short-term rental tax and the Inclusionary
Zoning payment-in-lieu fee – are in flux. Since 2023 the City of Burlington has collected taxes from short-
term rentals and has only allowed short-term rentals in properties that are owner-occupied or have an
affordable unit on site. Income from the short-term rental tax generated more than $700,000 in
housing trust fund revenue in fiscal year (FY) 2024 and is anticipated to generate around $600,000 in
FY2025 (total short-term rental tax collected in FY2024 was more than $900,000 and $800,000 is
anticipated in FY2025; the remaining portion of the tax ***). Although it is difficult to predict future
revenue, this source has trended downwards since the city started collecting the tax (averaging $10,000
less a month in revenue for BHTF). If this trend continues, this would represent a substantial loss in BHTF
revenue.

Another major source of BHTF revenue is the Inclusionary Zoning payment-in-lieu (PIL) fee.
Developments subject to the Inclusionary Zoning ordinance, which requires the inclusion of affordable
units in new construction, can opt to pay a fee – the PIL – instead of constructing the units. Currently,
fees range from $35,000 to $85,000, depending on the total number of units constructed. These figures
are out of line with market construction costs – recent affordable housing projects have had
development costs of approximately $500,000 per unit. An increase in the City’s payment-in-lieu fees is
anticipated in the coming year. The impact this might have on BHTF revenue is uncertain. Although
higher fees may result in increased BHTF revenue, it is also possible that developers would opt to
construct the units, rather than to pay the higher fees. This would increase the number of Inclusionary
Zoning units constructed in the city, but would reduce the revenue collected by the BHTF from PIL fees.

In summary, funding for affordable housing development in Burlington is increasingly uncertain. At the
same time, the need for affordable housing is ever greater. Housing remains unaffordable to many
residing in Burlington, and the rental and housing market is inaccessible to others who would like to live
in the city. In 2023, 25% of Burlington households were cost-burdened, meaning they expend between
30-49% of their income on housing, and an additional 19% were severely cost-burdened, meaning they
spend over 50% of their income on housing. Among renters, these figures rise to 31% and 24%,
respectively (source: U.S. Census Bureau American Community Survey 5-year estimates). Among low-
moderate income (LMI) renters (i.e., those earning below 80% of Area Median Income (AMI)), these
numbers are starker: 48% of LMI renters are cost-burdened and 76% of renter households earning
below 30% of AMI are cost-burdened or severely cost-burdened (source: 2013-2017 CHAS).




Report on Increasing BHTF Annual Revenue 8


 Page 99 of 122
Menu of HTF Revenue Options
Housing Trust Funds are found throughout the country at state, county and local levels. In preparing
this report, data was gathered by reviewing information from the Housing Trust Fund Project (a national
resource for Housing Trust Funds throughout the county), researching other housing trust funds and
municipalities and discussions with local experts and advocates who have been championing and
supporting Burlington’s Housing Trust Fund and other affordable housing initiatives. While there are
many possibilities for increasing revenue and support for BHTF, this report highlights six specific options
that best aligned with the committee’s directive. These options create new revenue through
progressive-taxation or tourists visiting the city and are revenue neutral on their impact to property
taxpayers.

 Option Steps to Implement Potential Revenue Other Notes
 1. City Council resolution
 Would create a
 for question on ballot
 Consistent revenue
 2. Approval from voters
 Property transfer tax $1 million + annually stream based on sales
 3. State legislative
 of properties within
 approval
 City
 4. Gubernatorial approval
 Minimal impact on
 current property tax
 Transfer previously
 system.
 exempt municipal
 $1.5 million + Methodology for
 property tax to HTF 1. City Council ordinance
 annually tracking would be
 when no longer developed by CEDO
 exempt and Tax Assessors
 office.
 Increase the creation Creates additional
 $250,000 annually
 of new units for 1. City Council resolution housing units
 (STR increased 50%)
 short-term rental Time-limited
 Interest from
 TBD – likely Still determining
 unexpended BHTF 1. City Council resolution thousands (not $1 potential revenue and
 collected and million) value.
 reinvested in BHTF
 The state is exploring
 Higher tax-rate for Requires changes to the classification system
 TBD – depends on the
 non-homestead state’s property changes, but this would
 rate charged
 residential properties classification system not be implantable at
 this time.
 City income tax on Requires changes to TBD – depends on the Not possible at this
 individuals state law rate charged time




Report on Increasing BHTF Annual Revenue 9


 Page 100 of 122
 Initiate a local property transfer tax
 A property transfer tax is a tax on the transfer of title to real property. The State of Vermont has a
 property transfer tax that is variable among principal and non-principal residences. The state property
 transfer tax includes a special tax rate (and clean water surcharge exemption) for the first $200,000 of
 value paid for a principal residence. A large proportion of the state property transfer tax is allocated to
 Vermont Housing and Conservation Board, which supports affordable housing development statewide.

 To initiate a local property transfer tax, the City of Burlington City Council would adopt a resolution
 adding the question to the ballot for voters. If the voters supported the transfer tax it would then go to
 state legislators for approval and would also require gubernatorial sign-off.

 Based on 2024 property sales a City Property Transfer Tax of 1.5% on sold property values above
 $500,000 would result in $1,000,000 in revenue. The median sale price for single-family homes in
 Burlington in the last 16 months (1/1/24 - 4/30/25) was $499,000. See below options for the
 implementation of a local property transfer tax:

 #1 Flat Rate Property Transfer Tax
 Based on 2024 property sales, the charts below show the revenue for a marginal property transfer tax at
 1% or 1.5%. The tax percentage stays consistent for all sale prices AND the tax only applies to the
 portion of the property sale above the marginal tax value.

 Marginal Tax Marginal Tax
 Tax Percentage City Revenue Tax Percentage City Revenue
 Above Above
 1% $300,000 $1.3 Million 1.5% $300,000 $1.9 Million
 1% $500,000 $770,300 1.5% $500,000 $1.2 Million
 1% $550,000 $684,300 1.5% $550,000 $1 Million


 #2 Modified Progressive Property Transfer Tax
 The charts below show the revenue for a tax rate that increases based on the sale price of the property,
 the revenue that would have been generated for the city based on the values of properties sold in
 recent years, and the proposed tax expense per property by sales price.

 Tax Percentage Sale Amount Sales Year City Revenue Property Value Proposed Tax
 0% <$200,000 2022 $1.69 million $250,000 $250
 .5% $200,001-$500,000 2023 $1.37 million $500,000 $1,500
 1.5% >$500,000 2024 $1.74 million $750,000 $5,250


 #3 Progressive tax rate at 50% of State Property Transfer Tax
Transfer Tax Sale Amount Revenue generated: Tax Burden by Property Value:
Percentage Year City Revenue Value Proposed
0% <$200,000 2022 $1.91 million Transfer Tax
.5% $200,001-$400,000 $250,000 $250
 2023 $1.57 million
1% $400,001-$600,000 $500,000 $2,000
 2024 $2.04 million
1.5% $600,001-$800,000
 $750,000 $5,250
2% >$800,000
 $1,000,000 $10,000

 Report on Increasing BHTF Annual Revenue 10


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Property Taxes for Formerly Exempt Properties Given to Housing Trust Fund
Within the City of Burlington are multiple properties that are eligible for property tax exemption. In
some jurisdictions, the net new revenue from tax-exempt properties converting to a taxable use is
dedicated to the Housing Trust Fund. The rationale is that these new revenues are a “windfall” that
were not assumed to be part of the municipal budget and so therefore can be allocated to a Housing
Trust Fund. Below is a table of properties that currently have tax-exempt status and the possible new
tax revenue generated if these properties were changed to multi-unit residential properties. Most of
these properties are within the Downtown Tax Increment Financing district so the income generated by
these properties would be available for Fiscal Year 2036 and beyond. These calculations are based on:

 1. Properties that are exempt, but are currently for sale or exploring uses that would be taxable
 2. The number of potential units at a property
 3. An average value of $400,000 per new unit (based on current assessed values of a single unit)
 4. Multiplied by $4,248.44 – an average per-unit tax rate from four large multi-unit properties
 constructed in Burlington in the last fifteen years.

 Expected value Possible New
Potential Properties Potential Units (calculated at Municipal Tax End of TIF
 $400,000/unit) Revenue
176 South Winooski 38 $15,200,000.00 $56,504.22 6/30/35
266 College St. 79 $31,600,000.00 $117,469.31 6/30/35
108 Cherry St. 200 $80,000,000.00 $297,390.65 6/30/35
20 Pine St. 250 $100,000,000.00 $371,738.31 6/30/35
2 Cherry St. 100 $40,000,000.00 $148,695.33 6/30/35
St. Mark’s 200 $80,000,000.00 $297,390.65 n/a
Memorial Auditorium 300 $120,000,000.00 $446,085.98 6/30/35
 Total: $1,735,274.44

Short-term Rental Creation
Burlington needs more housing. While several large-scale multi-unit projects are underway and in the
planning stages smaller scale development (10-units or less) is limited. Despite recent changes to zoning
that allows for multiple units on all properties and multiple freestanding structures very few projects
have come into fruition. An option for creating additional units in the city and increasing BHTF revenue
could be a time-limited exemption to components of the short-term rental ordinance for newly created
housing only. Specifically placing a time-limited exemption to the owner-occupancy requirements for
newly created housing to allow a proportion (1-unit or 20%, whichever is greater) of new housing units
to be rented as short-term rentals for a finite period of time (perhaps 5, 10 or 15 years). It is difficult to
know how much funds could be generated by this exemption, but a 50% increase in the number of
short-term-rentals within the city would generate an additional $250,000 a year

Add the interest generated by unexpended BHTF monies into BHTF
On any given day BHTF has a balance of funds from newly received revenues and committed, but not yet
disbursed, awards. While some projects request grant funds quickly, it is common for larger renovation
or development projects to take several years before completion and funds to be fully drawn down


Report on Increasing BHTF Annual Revenue 11


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(although the projects cannot start and receive their main funding without the guarantee of BHTF and
other funds).

While generated interest would not create the requested $1 Million annually, it may generate
thousands or tens of thousands of dollars in interest. An approximation of potential interest income is
in-process.

Higher Tax Rate on Non-Homestead Residential Properties
A future possibility for increasing BHTF revenue is a higher tax rate for non-homestead residential
properties in the city – this would include second homes, vacation homes, homes occupied seasonally,
etc. Vermont’s current property tax system only has two categories – primary residence and non-
homestead everything else. The state is exploring more categories and this could allow the city to tax
non-homestead residential properties at a higher rate.

Local income Tax
Another future possibility for increasing BHTF revenue is a local income tax. This is currently not an
option in Vermont, but several locales utilize income tax to support funding for their affordable housing
and support services. In 2020 the city of Portland Oregon started taxing personal income above
$125,000 at 1% ($200,000 for a couple) and also collects a 1% business income tax on net income for
businesses with gross receipts above $5 million. In Seattle Washington voters approved a 5% tax in
2023 for any Seattle-based employee with annual compensation exceeding $1 million.




Report on Increasing BHTF Annual Revenue 12


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TO: City Council Community Development & Neighborhood Revitalization Committee

FROM: Brian Pine, CEDO Director
 Rebeka Lawrence-Gomez, Housing Programs Manager

DATE: May 19, 2025

RE: Report on Increasing Burlington Housing Trust Fund Annual Revenue

This memo is intended as a preface to the above-captioned report prepared by CEDO.

On February 10, 2025, the City Council adopted a resolution tasking the Community & Economic
Development Office (CEDO), in collaboration with the City’s Chief Administrative Officer, Assessor’s
Office, and other city staff, to identify pathways to increase the money dedicated to the Burlington
Housing Trust Fund by at least $1 million annually.

While Burlington has pioneered the use of a Housing Trust Fund at the local level for perpetually
affordable housing since 1990, HTFs are found throughout the country at state, county and local
levels. In preparing this report, data was gathered by reviewing information from the Housing Trust
Fund Project (a national resource for Housing Trust Funds throughout the county), researching other
housing trust funds and municipalities, and discussions with local experts and advocates who have been
championing and supporting Burlington’s Housing Trust Fund and other affordable housing initiatives.

While there are many possibilities for increasing revenue and support for BHTF, this report highlights six
options that we believe are best aligned with the directive of the Council Resolution. The options
offered in this report are intended to offer potential pathways to increase the BHTF by $1M, but we are
not making recommendations about the advisability and suitability for each option. Once the Council
decides which options to pursue, the CEDO team will assist in taking a deeper dive in the process of
bringing forward the preferred option(s).

The Council resolution called for offering a variety of pathways to increase BHTF revenue guided by the
following policy objectives:

 • Generate new revenue only through progressive-taxation, meaning that those residents and
 businesses with the highest incomes and largest amount of wealth pay more than Burlington’s
 working and middle class; and
 • Revenue may also be generated from tourists visiting our city; and




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 • Be revenue-neutral in relation to their impact on property taxpayers.

The six options that are discussed in the attached report form the basis of ways to enhance the BHTF
revenue in a manner that is consistent with the above-referenced goals of the Council resolution. The
report focuses on the following options:
 1. Property transfer tax
 2. Transfer net new revenue when a tax-exempt property is converted to a taxable use
 3. Increase the creation of new units for short-term rental as a means of generating new HTF
 revenue
 4. Dedicate the interest income earned on BHTF funds back into the BHTF
 5. Higher tax-rate for non-homestead residential properties
 6. Levy taxes from businesses for individual compensation of more than $1M

For 35 years the Burlington Housing Trust Fund has supported the creation, retention and rehabilitation
of affordable homes in the city. One in ten Burlington homes have benefited from this resource. New
revenue sources have multiplied the BHTF in recent years increasing its impact and benefits to the
community. Exploring options to expand BHTF offers additional resources to leverage other public and
private funding so badly needed to advance the City’s ongoing commitment to affordable housing.




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CITY OF BURLINGTON, VERMONT
 CITY COUNCIL COMMUNITY DEVELOPMENT &
 NEIGHBORHOOD REVITALIZATION COMMITTEE
 c/o Community & Economic Development Office
 City Hall, Room 32 • 149 Church Street • Burlington, VT 05401
 802-865-7144 VOX • 802-865-7024 FAX • www.burlingtonvt.gov/cedo




Councilor Evan Litwin (EL), Chair, Ward 7
Councilor Carter Neubieser (CN), Ward 1
Councilor Allie Schachter (AS), East District

 CDNR Committee Meeting
 Wednesday, June 18th, 2025
 6:30 – 8:30 PM
 Sharon Bushor Conference Room, 1st Floor – City Hall

Committee members: Evan Litwin (EL), Allie Schachter (AS)
City Staff: Christine Curtis, CEDO
Other Attendees: Brian Pine, Rebeka Lawrence-Gomez, CEDO; Sarah Carpenter, Andrea Viets,
Jane Catton


 Draft Minutes

Meeting Started at 6:30 PM

 1. Approve agenda
 MOTION by Councilor Schachter, SECOND by Councilor Litwin, to approve
the agenda
VOTING: unanimous; motion carries.

 2. Adopt Minutes
 MOTION by Councilor Schachter, SECOND by Councilor Litwin, to approve
the 5/1/25 minutes
VOTING: unanimous; motion carries.

 3. Public Forum
 • No one spoke at public forum

 The programs and services of the City of Burlington are accessible to people with disabilities.
 For accessibility information, call 865-7144. For questions about the meeting,
 contact Christine Curtis at ccurtis@burlingtonvt.gov
4. Initial Discussion & Planning: Council on Aging Report referred by City
 Council
 • The group discussed the Council on Aging report. Allie Schachter
 highlighted the importance of the report, which focuses on
 supporting seniors in the community, and emphasized the need to
 continue this work amidst recent city restructuring. The group agreed
 to prioritize next steps and discuss the report's key takeaways, with a
 focus on the aging council's future activities.
 • The group reviewed the resolution passed by the City Council, which
 called for a review of services for older adults and the allocation of
 resources to the Heineberg Community Senior Center. The group
 considered formalizing the Council on Aging as a city commission and
 explored potential support from the City's REIB department.

5. HTF Reports and Update – Rebeka Lawrence-Gomez, CEDO
 • Discussed funding options for affordable housing, with Brian Pine
 explaining the Housing Trust Fund's role and history. The group
 reviewed various revenue-generating ideas, including property
 transfer taxes and converting exempt properties to taxable status.
 They agreed to compile pros and cons of each option for the next
 meeting, where they will work with Carter to develop
 recommendations for the Housing Trust Fund Committee and
 Mayor's office. The discussion also touched on the need to correctly
 allocate short-term rental taxes according to the original ordinance,
 which states a 9% tax for the Housing Trust Fund.

6. Initial Discussion & Planning: Syringe Litter Report from Board of Health
 referred by City Council
 • The group discussed next steps for addressing syringe litter in
 Burlington following a recent Board of Health report. They agreed to
 draft an invitation letter to stakeholders for upcoming summer
 meetings, with a focus on engaging syringe service providers,
 community organizations, and city departments. The committee
 plans to evaluate low-cost, high-impact solutions like additional
 collection boxes and explore options for funding and implementing
 them. They also aim to research successful programs in other cities
 and assess the feasibility of potential changes to syringe service
 programs in Burlington. The group will meet again to further discuss
 recommendations and next steps before presenting findings to the
 City Council by September 1st.
7. Scheduling
 • The group scheduled several meetings to discuss a syringe litter
 initiative, with the next work session set for July 10th from 5:30 to
 7:30 PM. They agreed to hold another work session on August 7th,
 followed by a final meeting on August 20th where they will vote to
 approve their memo.

8. Adjournment
 • ADJOURN at 8:35 p.m. by Councilor Litwin with no objection