Building Together: A Call for Collaborative Housing Legislation

Building Together: A Call for Collaborative Housing Legislation

This commentary is by the Vermont Chamber of Commerce, the Vermont Natural Resources Council, and the Vermont Association of Planning and Development Agencies

Climate change poses a significant threat to Vermont’s natural resources, economy, and way of life. From extreme weather events to loss of biodiversity, the impacts are already evident. Simultaneously, Vermont faces an urgent housing crisis that demands swift and strategic action. Adequate and affordable housing is essential for attracting and retaining a skilled workforce, promoting economic vitality, accommodating climate refugees, and ensuring the well-being of our communities.

Elected leaders at all levels have made building more housing and protecting our environment a priority – and yet progress to comprehensively reform Act 250, our state’s landmark land use and development law, has remained elusive for a number of years, even though there have been multiple attempts. This year, after building unprecedented consensus among a number of stakeholders, we believe a compromise is available, actionable, and attainable.

Legislators can make real progress this year by passing the recommendations in the Vermont Natural Resources Board’s report on the Necessary Updates to Act 250, which was released in December 2023. This report reflects areas of common ground and outlines a framework for how Act 250 can be modernized to better protect our environment while also encouraging more housing to be built in viable locations.

Act 250, originally enacted in 1970, has played a fundamental role in shaping Vermont’s development, and these proposed updates signal a willingness to adapt to the evolving needs of our state. Following six months of work, stakeholders with different priorities, have shown a commitment to demonstrating that progress is not a zero-sum game. The solutions proposed in this report highlight the intersectionality of the challenges Vermont faces today, and offer a path forward to incentivize new housing development in and around our community centers, while better protecting Vermont’s natural resources.

With the current legislative session well underway, this report is now in the hands of Vermont’s lawmakers. Committees in both chambers have spent weeks hearing testimony on how Act 250 can be improved to more effectively support housing, environmental protection, social equity, and economic vitality. There is much more work to be done to develop legislation that meets the moment by adequately protecting our environment and advancing needed housing around the state.

By modernizing Act 250 to a location-based approach with a 3-tiered system, we can better incentivize the development of dense and resilient communities where we want growth to happen while also recognizing that certain natural areas deserve a heightened level of review. In Tier One, Act 250 would acknowledge where municipalities and state agencies are already providing appropriate oversight of development by encouraging compact housing in areas that will lead to better smart growth outcomes. The addition of a “road rule” trigger and forest fragmentation criteria in Tier Two would incentivize more compact growth that better maintains our forested and agricultural lands and wildlife habitat. Tier Three would acknowledge that there are critical natural resources that need additional review and protection when development is proposed.

We acknowledge and expect that disagreements will continue to arise throughout the legislative session. However, we firmly believe that by remaining at the table and engaging in open dialogue, we can find common ground and work together to find solutions that serve the best interests of Vermont. We can strike a balance between development and natural resource protection that allows us to find shared solutions to the housing crisis and mitigate the impacts of climate change and biodiversity loss.

The Vermont Chamber of Commerce, the Vermont Natural Resources Council, and the Vermont Association of Planning and Development Agencies recognize the urgency of addressing these issues and are committed to fostering collaboration among stakeholders. Each of our organizations brings a unique perspective to the issue and we are all committed to working toward policies that pave the way for a resilient and prosperous future for all Vermonters.

As leaders in our respective fields, we urge legislators, communities, businesses, advocates, and government agencies to remain engaged in this collective effort. The challenges we face are immense, but so too is our capacity to overcome them. Let us embrace collaboration, and work together to create a resilient, thriving future for Vermont.

About the Vermont Chamber of Commerce

The Vermont Chamber of Commerce is dedicated to advancing the Vermont economy. Trusted by the businesses that make living, working, and thriving in Vermont possible, we prioritize collaboration and uphold the core values that define our state. As the preeminent not-for-profit business organization, we advocate, build community, and provide resources for businesses statewide.

About Vermont Natural Resources Council (VNRC)

Through research, education, collaboration and advocacy, VNRC protects and enhances Vermont’s natural environments, vibrant communities, productive working landscapes, rural character and unique sense of place, and prepares the state for future challenges and opportunities.

About the Vermont Association of Planning and Development Agencies

The Vermont Association of Planning and Development Agencies (VAPDA) is the statewide association for the State of Vermont’s 11 regional planning commissions. Regional Planning Commissions (RPCs) are Political Subdivisions of the State of Vermont created by their member municipalities.  RPCs provide technical assistance to municipalities, and since Vermont does not have county governments, Vermont’s Regional Planning Commissions act as a link between municipal affairs and state government. RPCs work in fields that directly and indirectly affect the public at large: land use, transportation, housing, economic development, environmental quality, and more.

Vermont Chamber Continues Advocating for Smart Growth and Resilience in Act 250 Modernization Bill

Vermont Chamber Continues Advocating for Smart Growth and Resilience in Act 250 Modernization Bill

Work on the House Energy and Environment Committee’s Act 250 modernization bill continued this week as legislators considered input on measures to encourage development in areas that will lead to better smart growth outcomes for all Vermont communities. The Vermont Chamber is committed to remaining engaged in the process to secure swift and strategic positive outcomes for the Vermont business community.  

In the new version of the bill that was introduced this week, the original sections remain largely unchanged, but the bill now includes language reflecting the outcome of the Designation 2050 report that the Vermont Chamber served as an advisor for.  A section-by-section version of the bill is available online. The Vermont Chamber remains highly engaged on this issue and will be advocating for planned growth area designation requirements that are accessible to communities across the state and are large enough to encompass the thousands of housing units Vermonters need. Additionally, we will support the creation of a professional board with a mission of creating an Act 250 process for applicants that is fair, timely, and consistent across all district commissions and leaves the legal determinations of appeals with the environmental courts. In the second tier (which will be areas outside of the downtown and village planned growth areas) we will continue to support the compromise that incentivizes dense development through the creation of a road rule and forest protections that have support for working lands and rural businesses. 

Building Tomorrow: The Evolving Housing Legislation Landscape

Building Tomorrow: The Evolving Housing Legislation Landscape

Legislative leadership has made a cross-chamber commitment that there will be an Act 250 package this session that modernizes the land-use and development law to meet the needs of Vermonters by enabling the creation of new housing. Work continued this week on the Be Home bill, H.687, and S.308. Each of these bills contains initial committee perspective that will play a role in reaching a final compromise.

Work on the Be HOME bill continued in the Senate Economic Development, Housing, and General Affairs Committee where members worked to hammer out interim Act 250 relief for housing development while a larger Act 250 statewide mapping project would happen over the next several years. Due to procedural requirements, that bill was voted out of committee today but will be recommitted back to the same committee next week to receive further drafting. In addition to land use, the BE Home bill includes housing programming, local zoning changes, and taxation changes.

The House Energy and Environment Committee is shifting from taking lengthy testimony on H.687 which covers Act 250 and the summer land use studies, to implementing feedback and stakeholder considerations. With six weeks until the crossover deadlines for bills to move from one chamber to another, the committee will have significant time to refine the bill. The Vermont Chamber will continue to advocate for proposals that are more closely in line with the compromise made in the Necessary Updates to Act250 report.

The Senate Natural Resources Committee is also working on a bill concerning Act 250 and weaving together the three land use reports that were done before the session. It is unclear how the two Senate Act 250 bills will come together. There was also a joint hearing between the House General and Housing Committee and the House Human Services Committee this week on affordable housing initiatives.

On March 14, the Vermont Department of Housing & Community Development and statewide partners will hold a summit on the Homes for All Toolkit that will address community housing and affordability concerns. The toolkit includes a Missing Middle Homes Design Guide, a series of five Vermont Neighborhood Infill Design Case Studies, and a Builders’ Workbook.

Focus Builds on Act 250 Modernization Efforts

Focus Builds on Act 250 Modernization Efforts

With three different Act 250 modernization proposals under discussion in three different committees, stakeholders are optimistic that this could be the year for meaningful reform that includes exemptions. The BE Home bill, H.687, and S.308 each lay out a tiered approach to Act 250 jurisdiction, but differ in the details of how those tiers will be determined and what they include. The Vermont Chamber is encouraging collaboration and voicing support for policies that incentivize new development in and around our community centers as outlined by the Vermont Natural Resources Board report on necessary updates to Act 250.

The Vermont Chamber testified throughout the week before the House Energy and Environment Committee, advocating for sizable, planned growth area designations throughout the state. These would designate both large and small communities, include Act 250 exemptions, and should be large enough to build a substantial number of resilient housing units. Clear housing goals and a comprehensive data-informed plan must be established to address the changing demographic and housing needs. Legislators have an opportunity to leverage resources such as the Vermont Futures Project and VHFA’s Housing Needs Assessment to inform their decisions.

Work on Crucial Housing Bill is Underway in Senate Committee

Work on Crucial Housing Bill is Underway in Senate Committee

While there seem to be more housing bills introduced this session than housing units being built in Vermont, the Senate Economic Development, Housing, and General Affairs Committee took testimony throughout the week from various stakeholders to inform ongoing work on the “BE Home” bill. Early drafts of this session’s omnibus housing bill include amendments to Act 250, such as the issuance of permits contingent on other approvals and the establishment of new tiers. The proposal also addresses taxation adjustments, introducing modifications like property tax exemptions and sunset clauses for specific tax exemptions. Committee work on the proposed legislation is expected to continue next week to meet the Chair’s expectation of having a bill by early February.

The Vermont Chamber is advocating for solutions that encourage more housing to be built in viable locations, without appropriating large sums of money. In particular, for policy that incentivizes new development in and around our community centers as outlined in the Vermont Natural Resources Board report on necessary updates to Act 250.

Opportunity for Strategic Housing Investment in the Budget Adjustment Act

Opportunity for Strategic Housing Investment in the Budget Adjustment Act

This year, the annual task of adjusting the budget based on additional available funding, changes in program costs, and needs, will be different than in recent legislative sessions. With federal pandemic aid no longer in excess, discussions regarding the Budget Adjustment Act are subject to increased scrutiny and must be strategic. Funding must meet the greatest needs of Vermonters, and workforce housing is top of mind. The severe workforce shortages are exacerbated by the housing crisis and lead to recruitment and retention challenges that hinder Vermont’s economic growth. To address this, the Vermont Chamber is advocating in support of the Vermont Housing Finance Agency’s request for $25 million for the Middle-Income Homeownership Development Program

More needs to be done to engage with the private development community to increase the overall amount of homeownership opportunities for middle-income Vermonters. Specifically, by addressing the barriers that exist for building homes that the market can afford. The Middle-Income Homeownership Development Program has existed as a pilot program over the last two years and has successfully increased housing stock across the state. It has proven to be a prudent use of funding, making the most of programmatic dollars to create homes for 136 families to date. Support for this funding in the FY24 Budget Adjustment Act would ensure that the program continues to spur the critical work of building more middle-income housing.

Land Use Modernization is an Essential, and Affordable, Housing Solution

Land Use Modernization is an Essential, and Affordable, Housing Solution

Legislators discussed important land use reports this week, in the Senate Economic Development, Housing, and General Affairs Committee, the House Environment and Energy Committee, and the Rural Caucus. This session is an opportunity to craft legislation that encourages more housing to be built in viable locations, without appropriating large sums of money. In particular, the Vermont Chamber is advocating for housing solutions that incentivize new development in and around our community centers as outlined in the Vermont Natural Resources Board report on necessary updates to Act 250.

Megan Sullivan, VP of Government Affairs, was on the Steering Committee for the report, which underscores the need for strategic changes to Vermont’s land use policy. This work brought together stakeholders with diverse perspectives to reach an agreement on how to best center modernization and incentivize essential housing development in smart growth areas. Several bills have been introduced that would be vehicles for progress in this area and the Vermont Chamber will be engaged throughout the session to ensure real progress is made.

Shared Priorities Central in Governor’s State of the State

Shared Priorities Central in Governor’s State of the State

Governor Phil Scott’s address to the General Assembly set the stage for a legislative session that has significant opportunities for collaboration between legislators and the Governor on issues that are top of mind for businesses. Both have said that housing solutions and climate recovery and resiliency measures top their priority lists.

Workforce housing and recovery and resiliency are two pillars of the 2024 legislative business priorities. The Vermont Chamber is continuing to work on solutions for modernizing Act 250 to increase housing development and is encouraging legislators to establish a statutory goal for housing supply. We are also at the table advocating for the replenishment of business recovery programs following this year’s flood disasters and supporting work that prioritizes resiliency measures to help secure stability for the Vermont business community.

As anticipated, Governor Phil Scott’s State of the State address echoed his longstanding commitments to the economic well-being of Vermont and fiscal responsibility. For the past decade, the Vermont Chamber has worked to put a spotlight on Vermont’s severe demographic challenges and Governor Scott expressed his shared deep concern about the accumulating impacts on our workforce, reiterating that “the biggest obstacle we face to economic sustainability, is a shrinking workforce.” The Governor also shared that his proposed budget this year will have a modest 3% increase. The Governor will return to speak to the General Assembly again in three weeks with details on his proposed budget.

Flood Recovery and Resiliency the Central Issue for Legislators

Flood Recovery and Resiliency the Central Issue for Legislators

Committees in both the House and Senate took testimony this week on the July flooding and the ongoing impacts of climate change in Vermont. Discussions in the Senate Economic Development, Housing, and General Affairs Committee highlighted the connection between housing challenges and climate impacts. Encouragingly, the focus was not solely on where not to build, but also on identifying suitable areas for development. Witness testimony stated that the triumph of Irene was the reopening of roads and bridges, while the triumph from the July flooding needs to be the building of new housing outside of floodplains.

In a joint hearing, the House Environment and Energy Committee collaborated with the House Transportation Committee to also address flooding and climate resilience concerns. The discussion focused on conserving and restoring landscapes, including wetlands and floodplains, to mitigate storm impacts. Notably, nature-based solutions were recognized for their dual benefits in reducing flood risk and enhancing community recreation. The Vermont Chamber will be advocating for continued resources for flood-impacted businesses and for policies that increase resiliency while also building housing.  

Draft Report on Recommended Act 250 Updates Released

Draft Report on Recommended Act 250 Updates Released

The Vermont Natural Resources Board released a draft report that underscores the need for strategic changes to Vermont’s land use policy. In recent months, Megan Sullivan, VP of Government Affairs was on the Stakeholder Steering Committee for the report, working to center modernization and to ensure essential housing development in smart growth areas is incentivized. Businesses are encouraged to submit feedback on the report in writing today, Friday, December 15, 2023. By participating in the public comment process, we can work together to ensure that Act 250 reform aligns with the needs of Vermonters.

There is an opportunity this year to update Act 250 to allow for critical housing development while also protecting important natural resources. It is essential that after taking public comments into account the final report recommendations consider the following:

  • We must ensure that the final report recognizes the role housing plays as an economic catalyst. We can stimulate economic activity and opportunity by reducing redundant permitting that adds unnecessary time and costs. This will actively support the creation of more housing in smart growth areas that subsequently help retain Vermont’s current population and attract new talent to Vermont.
  • It is vital that areas proposed for Act 250 exemptions, or a higher unit trigger, meet Vermont’s growth needs over the next 20 years. Infill development in current mapped designation areas which include less than 3% of Vermont’s land, will not meet the level of new housing units required to meet the goal of 350,000 units by 2035.
  • Any enhanced Act 250 jurisdiction in areas that have subsets of highly sensitive natural resources in Vermont should be carefully studied with input from rural Vermonters. Rural communities are an important part of the fabric of Vermont and cannot be left out or left behind.
  • The final report should contain a clear recommendation on measurable performance indicators. They must require that the administration of Act 250 is timely, consistent, predictable, and fair across all District Commissions.