Money Alone Cannot Fix Vermont’s Housing Problem

Money Alone Cannot Fix Vermont’s Housing Problem

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. 

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Workforce Housing Bill Introduced

Workforce Housing Bill Introduced

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.  

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Housing Solutions Gain Momentum

Housing Solutions Gain Momentum

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. 

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This Has to Stop

This Has To Stop

This commentary is by Megan Sullivan, Vice President of Government Affairs for the Vermont Chamber of Commerce, Tino Rutanhira, Co-Founder and Board Chair for the Vermont Professionals of Color Network, and Kelly Stoddard Poor, Director of Advocacy & Outreach for AARP VT.

In the past year, local news outlets have covered recurring instances of essential housing projects being delayed by one, or a few people. Stories from Jericho, South Burlington, Middlebury, Williston, Castleton, Waterbury, Morristown, Burlington, Winooski, Hartford, Putney, and others, highlight how easy it is to obstruct housing progress in Vermont.

Legislators of all parties, businesses from all industries, and communities across the state, agree that housing is the foundational challenge for Vermont right now. We can no longer allow state and local regulatory processes to be weaponized to derail housing opportunities.

This has to stop.

Over 85 municipalities have adopted a Declaration of Inclusion, an initiative with the intent to attract people with myriad skills and traditions 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, Vermonters in these same cities and towns are discouraging development.

For an economically secure, sustainable, and equitable future, Vermont needs more people of diverse backgrounds to move here to live and work. However, recent graduates and seasoned professionals alike are deterred from coming to Vermont due to the statewide supply shortage of suitable housing.

Additionally, we must better meet the needs of older Vermonters, who are essential members of our workforce and communities. There is a significant misalignment between the housing that is available, and the type of housing Vermonters need and want. For older adults who want to downsize to modestly sized alternatives, the housing supply isn’t meeting their needs. Instead, downsizing often requires leaving their community altogether and parting with the place they’ve called home for years.

Seven years ago, the Vermont Futures Project set a target of bringing 5,000 new or retrofitted units online per year, to keep supply in line with demand. Since then, we have seen hundreds of millions of dollars invested in housing, but the crisis continues to worsen. Since 2016, the annual average of new units permitted has been under 2,000. This means we are moving backwards, rather than forwards. While statewide investments are still part of the equation, a singular focus on investing tax dollars into housing must be broadened to create long-term and sustainable solutions for housing people of all ages and economic backgrounds.

The Vermont housing crisis requires bold leadership at both the state and local levels to reduce barriers to the creation of housing. Communities must take a stand against instances of individuals derailing projects that are in the public interest. Where state tax dollars have funded roadways, water systems, and public buildings and resources, the state has an obligation to maximize these investments, and allow more people to live near these resources paid for with taxpayer dollars.   

If housing is the top priority in the legislature, we need to see the issue receive immediate and aggressive attention this legislative session. Legislation that makes real change to address our housing crisis should be the first bill on the Governor’s desk this session.

To address the housing shortage, we recommend the following solutions:

Break Down Barriers– Modernize Act 250 and remove its requirements for housing in areas with state designations and restrict local zoning practices that inhibit the creation of housing options in smart growth areas. Exclusionary zoning and outdated land use regulations are adding prohibitive and often duplicative costs and delays. This hinders the ability of Vermont to welcome a new and diverse population to live, and work, here. It restricts the ability to build age-friendly homes for older Vermonters and to create more housing opportunities for BIPOC Vermonters who want to remain here.

Strategic Investment– Increase the workforce housing supply with a dedicated strategy for middle-income earners to access a progression of housing from tenancy to homeownership. Provide financial incentives to assist communities with the necessary infrastructure and planning resources to create housing opportunities for rural, aging, and historically marginalized BIPOC Vermonters.

Public-Private Partnership– Bring employers, developers, and government/non-government stakeholders together to find and finance housing opportunities in employment hubs. We need more voices with new ideas at the table to find new solutions.

Collect Data– Create a statewide registry of short-term rentals to understand how these operations are impacting the housing market for both rental and homeownership opportunities.

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About the Vermont Chamber of Commerce 

The largest statewide, private, not-for-profit business organization, the Vermont Chamber of Commerce represents every sector of the state’s business community. Its mission is to create an economic climate conducive to business growth. 

About the Vermont Professionals of Color Network

The Vermont Professionals of Color Network (VT PoC) is an organization built to advance the economic, professional, and social prosperity of all Black, Indigenous and People of Color (BIPOC) in Vermont. With membership across Vermont, the goals of VT PoC remain consistent: to build from within, to create opportunities for BIPOC to climb the economic and professional ladder, and to transform Vermont’s demographic and labor challenges by creating an economically secure, sustainable, and equitable future for BIPOC Vermonters.

About AARP

AARP is the nation’s largest nonprofit, nonpartisan organization dedicated to empowering Americans 50 and older to choose how they live as they age. With nearly 38 million members and offices in every state, the District of Columbia, Puerto Rico, and the U.S. Virgin Islands, AARP works to strengthen communities and advocate for what matters most to families with a focus on health security, financial stability and personal fulfillment. AARP also works for individuals in the marketplace by sparking new solutions and allowing carefully chosen, high-quality products and services to carry the AARP name.  As a trusted source for news and information, AARP produces the world’s largest circulation publications, AARP The Magazine and AARP Bulletin.

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Senate Passes $8 Billion Budget, Governor Raises the Prospect of a Veto

Senate Passes $8 Billion Budget, Governor Raises the Prospect of a Veto

The Senate passed an $8 billion budget several weeks earlier than anticipated, and the Governor immediately released a statement outlining his concerns, setting up the annual ritual of resolving the three different versions of budget priorities before final adjournment can happen. The Senate’s budget contains $70 million in housing investments, more than $100 million in workforce and economic development to support sectors hard hit by the pandemic, increased investment in childcare providers, $95 million for broadband connectivity, and $30 million in tax relief. The Governor’s concerns center around the Senate budget’s reduced tax relief, insufficient workforce retention and recruitment initiatives, the exclusion of the capital investment program, and reduced funding for Career and Technical Education. At a press conference on Wednesday, Senate leadership defended their bill, promising to be ready to override the Governor’s veto if necessary.

Back in March, the House passed their version of the budget, which included larger investments in the state college system than the Governor had proposed, but left out the middle-income homeownership program, a priority of the Governor. The House-passed bill also left out the roughly $100 million in economic development initiatives from the Governor’s proposal. While the Senate-passed version of the budget is closer to the Governor’s proposed budget, the remaining disparities may be too large for him to accept, setting the stage for a showdown in the final weeks of the session.

Housing Proposals Taken up in the House

Housing Proposals Taken up in the House

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.

Housing Legislation on the Move

Housing Legislation on the Move

The Senate Economic Development, Housing and General Affairs Committee passed S.226, the which aims to address Vermont’s housing crisis through permit reforms, housing supply, and access issues that will benefit working Vermonters. The bill saw several last-minute changes leading up to the vote to pass it out of committee, including the addition of the contractor registry and rental registry, both of which saw previous iterations vetoed.

Many of the proposals supported by the Vermont Chamber passed including the Missing Middle Homeownership Development program which will address the value gap in building and rehabilitating middle income homes. Funding was also allocated to the Vermont Housing Conservation Board to create an incentive for employers in creating workforce housing opportunities, and an incentive for the conversion of vacant commercial space into housing units. The Vermont Chamber will continue to bring the voice and needs of the business community to decision makers in Montpelier on this important housing legislation.  

The impacts of the Vermont housing crisis on employers was the subject for the Vermont Chamber’s first State to Main Podcast episode. Annmarie Todd of Sugarbush Resort detailed the lengths that businesses have gone to find housing for employees so they can retain and recruit their workforce.

Vermont Chamber Launches New Podcast Series (Ep.1: “State to Main” – Workforce Housing)

Vermont Chamber Launches New Podcast Series (Ep.1: “State to Main” - Workforce Housing)

The Vermont Chamber of Commerce launched a new policy-focused podcast series entitled, “State to Main.” The series complements the widely read weekly legislative newsletter of the same name.

In the months ahead, “State to Main” will cover several topics important to the Vermont business community, including housing, the workforce shortage, and career and technical education. Each episode features a unique pairing of a Vermont Chamber policy advocate and a business leader to discuss the impact of these issues on Vermont businesses. Episodes will focus on the role of each issue in combatting the statewide workforce shortage and are analyzed in a pandemic recovery context.

“Vermont’s economic success depends on the innovation of our businesses and strength of our workforce,” said Vermont Chamber President Betsy Bishop. “The intent of this series is to highlight areas where businesses need policy support to achieve economic recovery.”

The pilot episode, “Workforce Housing,” features Megan Sullivan, VP of Government Affairs for the Vermont Chamber, and Annemarie Todd, VP of Human Resources for Sugarbush Resort. Sullivan and Todd address the impact of the current housing market on employee recruitment and retention efforts, and the heightened responsibility felt by employers to facilitate suitable accommodations for their workforce. Policy opportunities are identified to address the immediate need for middle-income housing.

Episodes are available to stream online via  Spotify, Apple Podcasts, Soundcloud and on the Vermont Chamber of Commerce website.

“State to Main” is made possible by our sponsor, AT&T.

Getting Creative to Move the Needle on Housing

Getting Creative to Move the Needle on Housing

While there is universal agreement that Vermont has a housing shortage, how to fix it and where to allocate funds continues to be debated. Recently, Governor Scott requested $80 million in ARPA funds for multiple housing initiatives for the current year budget and another $100 million in ARPA funds for a housing package next year.  The Vermont Chamber has suggested creating incentives for converting empty office buildings into housing in our downtowns and village centers and will advocate for the proposals outlined by the Vermont Futures Project to create workforce housing.  

The Vermont Chamber will also be an active voice in supporting the modernization of Act 250 to facilitate a more predictable and less costly permit process to better enable the development of housing in our downtown and village centers. 

Investing in Vermont’s Future: Community Conversations

Investing in Vermont’s Future: Community Conversations

Thanks to remaining federal stimulus funds and a surge in state revenues, Vermont is currently in a position to make unprecedented investments in its economic future. The Legislature is gathering ideas at planned open discussions to inform policy and budgetary work related to these future investments.

This is an opportunity to meet with State House leaders and voice your concerns about the economic future of Vermont. Vermont is facing a housing crisis that continues to exacerbate the workforce shortages plaguing virtually every sector. These upcoming discussions with key leaders are your chance to share experiences and express your informed views about the future of local businesses in Vermont.

This could include discussing the impacts of increased taxation and regulation on business operations – particularly for small businesses, the ongoing challenges related to the workforce shortage crisis, and more.

These regional discussions will be held virtually. 

  • Washington County Conversation, Thursday, October 28th, 5:30 – 6:30. Register here.
  • Orange County Conversation, Tuesday, November 2th, 5:30 – 6:30. Register here.
  • Chittenden County Conversation, Thursday, November 4th, 5:30 – 6:30. Register here.
  • Orleans County Conversation, Monday, November 8th, 5:30-6:30. Register here.
  • Lamoille County Conversation, Wednesday, November 10th, 5:30 – 6:30. Register here.
  • Final conversation open to anyone across the state, Tuesday, November 16th. Register here.

To guide your remarks in advance of these conversations, consider:

  • How could the State use available funds in a manner that supported the existence and growth of Vermont’s business community?
  • How do the current high costs of business operations impact your ability to provide greater benefits to your employees?
  • How would additional regulatory burdens and taxation impact your business?
  • What barriers, regulatory or otherwise, are impacting the lack of housing in your community?
  • What additional actions could the State take to incentivize the in-migration of essential workers?
  • What specific investment could the State make to reduce your operating costs? For instance, the Unemployment Trust Fund was drawn down during the height of the pandemic and employers are obligated to refill the fund – would State investments that offset some of that obligation be meaningful to you?

Thank you for participating.