S.100, the ‘HOME’ bill, was voted out of the Senate Economic Development Committee last week and could make meaningful progress to address business housing concerns. However, the legislation is now in the Senate Natural Resources Committee and essential zoning reform elements are at risk of being stripped from the bill. Please contact your Senator to urge them to support the HOME bill as passed by Senate Economic Development Committee. 

Despite widespread support from legislators across political parties, the legislation is being met with significant opposition from conservationists. Ninety-eight municipalities have adopted a Declaration of Inclusion, an initiative with the intent to attract people to Vermont to live, work and raise families in a state that values and encourages diversity in its population. But, when it comes to building housing for new community members, state and local regulatory processes are used to derail housing opportunities, and Vermonters in these same cities and towns are discouraging development.  

In December, the Vermont Chamber hosted a business roundtable with Senator Ram Hinsdale on the need to make housing the top priority this session. As Chair of the committee tasked with crafting a housing omnibus bill, Ram Hinsdale has since championed the needs of businesses. Over the last eight weeks, the committee took testimony from over 100 Vermonters to craft a bill that would make meaningful progress on Vermont’s housing crisis. The Committee unanimously voted out S.100, the “HOME” bill, which thoughtfully addresses many of the areas that the Vermont Chamber has advocating for. However, the bill is now expected to have an uphill battle in the Senate Natural Resources Committee, which has historically opposed removing the barriers that exist to building housing.  

In an op-ed earlier this session, the Vermont Chamber advocated for legislative action in four areas. Highlights of S.100 are categorized into each of these areas: 

Breaking down Barriers 

• Limits municipal regulations on issues like parking, single-family zoning, ADUs, number of units per acre, height limitations. 
• Removes the ability for 10 people to appeal a decision of the municipal administrative officer. 
• Allows municipal administrative offices to approve subdivisions. 
• Removes the character of an area as a subject of an appeal. 
• Increases the trigger for Act 250 from 10 units in 5 years, within 5 miles, to 25 units in 5 years, within 5 miles in a designated area. 

Strategic Investment 

• $20 million for the Missing Middle Income Homeownership Program 
• $20 million for the Middle-Income Rental Housing Program 
• $20 million for the Vermont Rental Housing Improvement Program 
• $25 million for the Vermont Housing and Conservation Board 

Public Private Partnership 

• Creates opportunities for employers to invest in workforce housing developments through the Middle-Income Rental Housing program. 

Collects Data 

• Does not contain a rental registry. 
• Instructs auditors from the State Office of the Auditor or a third-party auditing firm to conduct an audit of the residential housing development and approval process and identify measures and policy changes that will improve the timeliness of residential housing development. 

The Senate Appropriations Committee amended the Budget Adjustment Act to include $14 million of funding from the American Rescue Plan Act (ARPA) and the general fund for the Missing Middle-Income Homeownership Development Pilot Program. The Vermont Chamber’s advocacy was essential to the establishment of the program and is a champion for solutions that increase the number of housing units statewide as a solution workforce shortage solution.  

This funding allocates $5 million of ARPA funding for FY22, $10 million of ARPA funding for FY23, and $9 million of general funding for FY23. Additional investments championed by Vermont Chamber that received funding were the Rural Infrastructure Assistance Program, Vermont Housing Improvement Program, and The State Refugee Office.

The demand for housing continues to be met with opposition from community and environmental advocates that want to discourage development and are denying housing opportunities to others. Kevin Chu of the Vermont Futures Project, Evan Langfeldt of O’Brien Brothers and former Vermont Chamber board member, and WeiWei Wang of the Vermont Professionals of Color Network all provided expert testimony on the need for the creation of more housing to ensure more people of all backgrounds can live, and work, in Vermont. While many of the policy areas outlined by the Vermont Chamber are been addressed through proposals in the Omnibus Housing Bill, equity remains central to the Vermont Chamber’s work to help shape this legislation. 

Chu, of the Vermont Futures Project, testified that Vermont needs more people, and more people need Vermont. He detailed the immediate need for the creation of more housing to ensure population growth can keep up with workforce demands, and that for an economically secure, sustainable, and equitable future, Vermont needs more people of diverse backgrounds to be able to move here. Langfeldt testified on the underlying reasons for rising housing costs and the lack of inventory and proposed opportunities for solutions that meet demand while addressing climate goals. Wang, of the Vermont Professionals of Color Network, also testified in support of strategic investments to create statewide housing opportunities and the need to address the homeownership gap for the fast-growing, but historically marginalized, BIPOC community in Vermont. 

The Vermont Chamber is collecting stories of businesses that have lost employees or prospective employees because of housing. If you are an employer who has experienced this, please complete this brief survey.  

The Senate Economic Development, Housing and General Affairs Committee continued to discuss the Omnibus Housing Bill. The latest version excludes priority housing projects from the definition of development and does not require a permit for these projects. It also invests in a program providing matching funds for the creation of workforce housing. The Vermont Chamber is advocating for creative solutions to encourage workforce housing development without increasing the tax burden on Vermonters. Most of the policy areas outlined by the Vermont Chamber to make progress this year have been addressed by proposals in the Omnibus Housing Bill. 

The Vermont Chamber is advocating for: 

• Shaping the Missing Middle Rental Housing Program to allow employers to invest in housing solutions for their workers via a revolving loan fund to provide lower rates to developers. 
• Strategic investment to incentivize the conversion of commercial property to housing units. 
• Continued funding for the Missing Middle Development Program and the Vermont Housing Investment Program. 
• Breaking down barriers by modernizing local zoning and eliminating Act 250 restrictions to encourage residential development. In areas with municipal sewer and water service, ensure communities cannot limit dwellings to single-family homes, allow the creation of housing with less than four units, and remove mandatory parking spaces per unit of housing. 

The Vermont Chamber is collecting stories of businesses that have lost employees or prospective employees because of housing. If you are an employer who has experienced this, please complete this brief survey. 

A proposal to allow employers to invest in workforce housing opportunities was included in the Workforce Housing Bill introduced yesterday by Rep. Katherine Sims. The Missing Middle Rental Housing Program would, in part, create a revolving loan fund to provide lower rates to developers to build housing that employers can invest in. Details of this proposal are not yet clear, but the Vermont Chamber will continue to be actively engaged in shaping the initiative to ensure that employers looking for a way to be actively involved in a solution to the housing shortage have a mechanism to do so.  

Earlier in the week, Rep. Seth Bongartz walked through the details and rationale behind important local zoning changes that are also included in the Senate’s Omnibus Housing Bill led by Senator Kesha Ram Hinsdale. He has spent months negotiating with a coalition of advocates on this issue. The bill also includes important common-sense measures to incentivize housing by removing outdated Act 250 and wastewater provisions that constrain housing development in smart growth areas. Additionally, it proposes investments in other housing and development programs with proven demand such as the Missing Middle-Income Development Program, the Vermont Housing Investment Program, and municipal planning grants. It is likely a new draft of the Senate’s bill will be released soon with the current language around the Project Based TIF program removed into a stand-alone bill.  

The Senate Committee on Economic Development, Housing, and General Affairs has started to review an omnibus housing bill that includes proposals to address municipal zoning barriers and project-based tax increment financing. The draft bill also includes a number of programs, including an Employer Housing Partnership Program, a Missing Middle-Income Homeownership Development Pilot Program, and a Vermont Rental Housing Improvement Program.  

There will be extensive testimony and committee discussion on this bill. As the Vermont Chamber advocates for increasing the workforce housing supply we need your input, please fill out this survey to inform legislators how the housing crisis has impacted your business.  

Earlier in the week, committees heard testimony on the conversion of commercial property to residential units, as well as the impact of short-term rentals on the housing market. Both of these topics are housing shortage solutions proposed by the Vermont Chamber.  

Testimony on commercial conversion provided insight into the need for incentives to overcome the hesitancy of property owners and developers. Proposed solutions to spur development could include tax credits to promote the viability of projects and allowing the Natural Resources Board to extinguish an Act 250 permit if the conversion is for commercial use. Additional pieces of the puzzle include municipal permitting reform, and assistance for developers to hook into municipal water and wastewater systems. 

Additional testimony was taken on short-term rentals, an industry that removes viable single-family homes for Vermonters from the market. The Vermont Chamber will continue to advocate for a short-term rental registry to understand the full impact on the workforce housing shortage and better inform policymaking. 

The critical housing omnibus bill (S.226) was approved by the Senate after amending the contractor registry language in hopes of avoiding a gubernatorial veto. While the bill is being reviewed in the House, it has a long road ahead due to the House Natural Resources, Fish, and Wildlife Committee having jurisdiction over the sections related to Act 250 and permitting, while the House General, Housing, and Military Affairs Committee has jurisdiction over housing programs. Additional complications arise from this bill having overlapping language with two other bills under consideration in these committees. 

The House Natural Resources, Fish, and Wildlife Committee also took testimony on the Senate passed S.234, which would make changes to Act 250 to increase housing opportunities in village centers and downtowns. The bill also includes more contested provisions around the creation of a road rule which would trigger Act 250 for new development that create roads or driveways over 800 feet each or 2,000 feet combined. The House General, Housing, and Military Affairs Committees continued to take testimony on S.210, which would create a registry of rental units and program language and funding for the Vermont Rental Housing Incentive Program which would provide $20 million for rental housing rehabilitation and accessory dwelling units.  These two committees will be working on a path forward to either merge or further break apart the three bills under consideration. The Vermont Chamber will continue to advocate for the programs in each bill which will increase the supply of affordable workforce housing.