Governor’s Executive Order Seeks to Boost Housing Supply in Vermont

Governor Phil Scott issued Executive Order 06-25 to promote housing construction and rehabilitation. This comprehensive order addresses many of the issues the Vermont Association of REALTORS® (VAR) Government Affairs Committee has been advocating for in recent study groups.

Building Energy Code Reform
For the past two years, VAR has actively participated in the Residential Building Energy Code (RBES) Workgroup, advocating for greater builder education and opposing costly new inspection requirements. The Governor’s order supports this position, allowing builders to use either the 2020 or 2024 RBES.

Expedited Permitting
The order directs state agencies to prioritize housing applications, shorten review timelines, and allow concurrent permit processing. It also sets automatic approval if deadlines are missed and permits fee deferral for priority housing projects. VAR will advocate to extend fee deferral to all housing projects.

Environmental Review Streamlining
The order updates wetland rules in designated growth areas such as downtowns, village centers, and opportunity zones. Class II wetlands will now be limited to currently mapped areas with buffer zones reduced to 25 feet. VAR has long supported reduced buffer zones and will continue to weigh in as the Land Use Review Board develops rules.

State Land Utilization
Agencies are now required to identify underutilized state owned properties for residential development. VAR has previously supported land bank proposals to help convert public properties for housing and will continue to advocate for these tools.

Interagency Coordination
The order mandates reporting requirements to ensure agencies coordinate with the Agency of Housing and Community Development and keep the Governor updated on progress.

Looking Ahead
While not included in the order, the Governor also expressed support for extending interim Act 250 exemptions that allow builders to create housing without full Act 250 review. VAR’s Advocacy Team will make extension of these exemptions a top priority in the upcoming legislative session.

This executive order represents a major step forward in addressing Vermont’s housing crisis and reflects the persistent advocacy of VAR members working to create meaningful change.

SUMMARY

Purpose and Context

  • Vermont faces a severe housing shortage due to outdated regulations, rising costs, and limited affordable options.
  • Despite historic investments (over $456 million from 2021–2024), the housing unit deficit exceeds 5,000 units annually.
  • The Executive Order aims to accelerate housing development, streamline permitting, and reduce regulatory barriers.                                                                                                                                                                                

Key Reforms and Actions

1. Building Energy Code Reform

    • Builders can choose to comply with 2020 or 2024 energy standards to reduce costs and improve affordability.
    • A review of energy code impacts is due by May 31, 2026.

2. Expedited Permitting

    • Agencies must prioritize housing-related applications, shorten review timelines, and allow concurrent permit processing.
    • Fee relief and deferred payments are encouraged for qualifying projects.

3. Environmental Review Streamlining

    • Wetland permitting limited to mapped Class II wetlands in designated growth areas.
    • Buffer zones reduced to 25 feet.
    • Judiciary encouraged to expedite housing-related appeals.

4. State Land Utilization

    • Agencies must inventory underutilized properties for housing use by December 1, 2025.
    • Surplus land disposal should favor housing developers with below-market pricing and long-term leases.

5. Interagency Coordination

    • A Governor’s Housing Leadership Team will meet bi-weekly to oversee progress and recommend policy changes.
    • A multi-disciplinary team (MDT) will streamline permitting for large housing projects.

6. Brownfields Redevelopment

    • The BERA Program is extended to support housing on contaminated sites.
    • Reports due in November 2025 and March 2026 on barriers and recommendations.

7. Monitoring and Accountability

    • Agencies must report quarterly starting January 1, 2026 on permit times, fee impacts, and regulatory improvements.
    • A semi-annual review of the Order’s effectiveness begins January 31, 2026.

8. Legal Safeguards

    • The Order must comply with federal laws, ADA, and public participation requirements.
    • Agencies may recommend emergency rulemaking to address urgent housing needs.    

Duration and Effectiveness

The Executive Order takes effect immediately and remains active unless modified. It supersedes Executive Order No. 01-23 as of September 30, 2025.