24 V.S.A. § ___ § 4009
Rentals
Operative Text
It is hereby declared to be the policy of this State that each housing authority shall manage and operate its housing projects in an efficient manner so as to enable it to fix the rentals for dwelling accommodations at the lowest possible rates consistent with providing decent, safe, and sanitary dwelling accommodations and that no housing authority shall construct or operate any such project for profit, or as a source of revenue to the State or municipality. To this end an authority shall fix the rental for dwellings in its projects at no higher rate than it shall find to be necessary in order to produce revenue which, together with all other available moneys, revenues, income and receipts of the authority from whatever source derived, will be sufficient: (1) to pay as the same become due, the principal and interest on the bond of the authority; (2) to meet the cost of and to provide for maintaining and operating the projects, including the cost of any insurance, and the administrative expenses of the authority; and (3) to create, during not less than six years immediately succeeding its issuance of any bonds, a reserve sufficient to meet the largest principal and interest payments that will be due on such bonds in any one year thereafter and to maintain such reserve. (1961, No. 212, § 9, eff. July 11, 1961; amended 1967, No. 332 (Adj. Sess.), § 4, eff. March 23, 1968.)
Under 24 V.S.A. ch. 113 § 4009, Vermont housing authorities are required to set rents at the lowest rates that still allow them to cover their financial obligations — including bond payments, operating and maintenance costs, insurance, administrative expenses, and a required debt-reserve fund — without generating profit for the State or any municipality. The provision establishes a cost-coverage framework rather than a profit-driven model, meaning rents are tied to what is financially necessary, not to market conditions. Housing authorities must also build and maintain a reserve fund over at least six years following any bond issuance to ensure future debt obligations can be met.
Plain English — not legal advice.
Housing authorities operating under 24 V.S.A. ch. 113 § 4009 are expected to conduct regular financial analyses to ensure that rental rates are set no higher than what is needed to cover bond obligations, operating costs, insurance, and administrative expenses. Compliant authorities document that their rental schedules reflect the lowest rates consistent with fiscal solvency, rather than any revenue-generating or profit motive. Maintaining the statutorily required bond-reserve fund — built over a minimum of six years — is a core operational responsibility under this provision.
General guidance for property managers — not legal advice for your specific situation. Consult an attorney for advice on your case.
Section 4009 of 24 V.S.A. ch. 113 establishes a tenant-protective principle: housing authorities in Vermont are prohibited from charging rents above what is necessary to cover legitimate operating and debt costs, and may not use public housing as a profit center. Tenants in authority-managed housing may have grounds to question rent levels that appear inconsistent with this cost-coverage standard, and can raise concerns with the relevant local housing authority's governing board. Tenant-rights organizations familiar with Vermont public housing law can help residents understand how this provision applies to their housing authority's rent-setting practices.
General guidance for tenants — not legal advice for your specific situation. Consult a tenant-rights organization or attorney for advice on your case.
Generated October 18, 2026 — auto-generated, not yet human-reviewed. See /transparency for methodology.
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