Communities with an approved CHIP Housing Development Site must follow certain program rules and requirements through the increment retention period. Compliance helps make sure funds are used properly, and projects stay in line with program goals. The information below explains common compliance responsibilities and what communities may need to do during and after a CHIP Site is approved.
VEPC's CHIP webpage may have additional FAQs related to this topic.
Yes. A municipality must collect documents from the developer and/or project sponsor to:
- confirm that financing was used for eligible infrastructure costs;
- make sure the infrastructure improvements were completed as agreed; and
- verify the total cost of the infrastructure project.
Yes. Municipalities with approved housing infrastructure projects must have an independent audit (CPA/Certified Public Accountant) of the special tax increment financing account.
The audit is required annually on or before April 1 until the year following the end of the education property tax retention period.
No. The audit must be conducted by an independent audit firm (CPA/certified public accountant).
Procedures for the audit must include:
- verification of the Original Taxable Value,
- verification of the annual and total municipal and education property tax increments generated,
- expenditures for financing and related costs, and
- current tax increment financing account balance.
No. Vermont law does not allow extensions to a CHIP’s repayment period.
Disclaimer: This resource was created by Municipal Operations Support (MOS) staff of non-legal professionals with expertise of the subject matter. It is only intended to provide information and does NOT constitute legal advice. Readers with legal questions are encouraged to contact an attorney. The use or downloading of this resource does NOT create an attorney-client relationship and will not be treated in a confidential manner. Non-legal questions about this resource can be directed to MOS staff at mos@vlct.org.