Modernizing Act 250 and Land Use Planning

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. 

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.

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.

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.