Modernizing Act 250 and Land Use Planning

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.