Progress Made on Housing for Everyone During '23 Session
The 2023 Vermont legislature completed business on Friday, May 12. The House and Senate Committees on Appropriation agreed to the FY24 budget while addressing funding for paid family leave, child care and housing.
VAR appreciates the work of the legislature and looks forward to participating in several summer studies that were enacted this year. Following is a wrap-up of some of the issues that VAR worked on this year.
Click the tabs on the left below for details. Updated June 16, 2023.
Questions?
Contact: Peter Tucker
Advocacy & Public Policy Director
peter@vermontrealtors.com
(802) 229-0513
S.100: Housing Opportunities Made for Everyone (HOME)
On June 5, Governor Phil Scott signed S.100 (an Act to provide Housing Opportunities Made for Everyone (HOME)). “This bill represents what we can get done when we all come to the table, work through our differences, and reach compromise to the benefit of all Vermonters, especially our most vulnerable and marginalized,” said Scott.
The VAR Government Affairs Committee and advocacy team set out VAR’s legislative priorities prior to the session. S.100 helped meet on housing goals through municipal zoning changes and relaxing the 10/5/5 rule in Act 250. While the bill does not go far enough, we are pleased that we were able to engage with the legislature and bring about positive changes to the bill as it moved from the Senate to the House.
The act requires municipalities to standardize their zoning requirements including:
- Require only 1 parking space per unit or 1.5 in areas not served by water/sewer or more than ¼ mile from public parking.
- Allow duplexes with the same dimensional standards as a single unit dwelling.
- In districts served by water/sewer multi-unit dwellings with four or fewer units shall be a permitted use
- In areas served by water/sewer bylaws shall allow affordable housing development including mixed use development to exceed density limitations by 40 percent.
- Municipal bylaws may provide for the administrative officer to approve minor subdivisions.
- An appeal of a permit shall not include the character of the area if the project includes affordable housing.
In addition, this legislation makes limited changes to Act 250, Vermont’s land use regulations including:
Until July 1, 2026, construction of 24 units or less shall not be subject to an Act 250 review for development located within:
- Downtown development districts
- Neighborhood development areas
- Designated village centers with permanent zoning and subdivision bylaws
- Designated growth centers
- New town centers
The construction of four units or fewer of housing in an existing structure shall only count as one unit.
Until July 1, 2026, construction of priority housing projects in Downtown Development Districts, Neighborhood Development Areas or Growth Centers shall not be subject to Act 250 review.
However, in order to qualify for Act 250 exemption, the party shall request a Jurisdictional opinion on or before July 1, 2026, for work to be completed by June 30, 2029.
A municipality with a downtown or neighborhood development area may apply to the Act 250 district commission for a master plan permit for these designation areas.
This act also commissions several studies including:
Municipal Delegation of Act 250: The Vermont Association of Planning and Development Agencies, in consultation with the Natural Resources Board (NRB), shall develop a proposed framework for delegating administration of Act 250 permit requirements to municipalities and report back to the Legislature by December 31, 2023.
Report of the Natural Resources Board. On or before December 31, 2023, the NRB shall report to the legislature on necessary updates to Act 250 and on location-based jurisdiction including what impact the increased threshold to 25 units may have.
Act 182 from the 2022 legislative session commissioned a study of the state’s designation programs. This study is due on or before December 31, 2023, and VAR is an active participant.
This Act creates a Building Energy Code Study Committee to recommend strategies for increasing compliance with the Residential and Commercial Building Energy Standards.
The Vermont Agency of Natural Resources (ANR) shall review ANR potable water and wastewater permits requirements for connections in municipalities who also approve these connections to reduce duplication of permitting.
Vermont Fire and Building Safety Code. The agency shall research ways to change fire and life safety codes to encourage more housing development.
Act 182 also funded the Vermont Rental Housing Improvement Program to provide grants or loans to bring non-compliant rental units back into service and to create new accessory dwelling units (ADUs). Act 182 provides an additional $10 million for this program.
Owners of rental housing who personally perform renovation, repair, maintenance or painting work on their own properties shall not be required to carry liability insurance for this activity.
Any property owner who sells a property located on a class 4 road shall disclose to the buyer that the town is not required to maintain the road.
H.483 – Accountability and oversight of approved independent schools
The Senate Committee on Education did not move this bill forward. The only action on independent schools for this session requires the Vermont Agency of Education to not approve any new independent schools. H.483 passed the House, so the Senate Committee on Education will be able to continue their work on this bill next year. This committee wants to see the impact of rules on equity and inclusion scheduled to go into effect on July 1 before adding additional legislation.
H.480 – Statewide system to conduct reappraisals
H.480 reaffirms the responsibility of the Director of Property Valuation and Review to order reappraisals for municipalities that have a grand list coefficient of dispersion greater than 20. Municipalities have 30 days to appeal a decision or offer a plan to reappraise. The municipality shall have 1 year to complete this plan. This language is already in statute.
New language in Section 2. 32 V.S.A 4041a (d) requires municipalities to commence a reappraisal no later than 6 years after the previous reappraisal.
The Vermont Tax Department shall receive an appropriation of $50,000 to hire a consultant to develop a proposal for the implementation of a statewide reappraisal as outlined in this bill.
By December 15, 2023, the department shall submit a progress report to the legislature including:
- A preliminary schedule to phase in full appraisals for all municipalities every six years.
- Study to consider additional property types.
- Options for educating lister and assessors on implicit bias
- Consider changes to grand list reporting date.
By December 15, 2024, the department shall report to the legislature:
- A detailed plan for the implementation of a statewide system of full and statistical reappraisals.
- Recommendations on defining property types.
- Racial bias training for assessors and reappraisers
- Propose required legislative changes.
- Prioritize municipalities based on age of last appraisal.
S.5 – Affordable Heat
Under the Global Warming Solutions Act of 2020, Vermont has a legal obligation to reduce greenhouse gas emissions to specific levels by 2025, 2030 and 2050.
This bill establishes the Clean Heat Standard to require obligated parties to reduce greenhouse gas emissions in the thermal sector by retiring the required amount of clean heat credits to meet the obligations of the Global Warming Solutions Act.
The Public Utility Commission (PUC) shall establish a system of tradeable clean heat credits earned from delivery of clean heat measures that reduce greenhouse gas emissions.
Definitions:
Clean Heat credit: a tradable nontangible commodity that represents the amount of greenhouse gas reduction attributed to a clean heat measure.
Customer with low income: Household income up to 60% of area or statewide median income.
Customer with moderate income: Household income between 60% and 120% of area or statewide median income.
Obligated Party: A regulated natural gas utility or for other heating fuels, the entity that imports heating fuel into the state.
The (PUC) shall establish the number of clean heat credits each obligated party is required to retire each year.
Each obligated party shall retire at least 16% from low income and 16% from low- or moderate-income customers.
Tradeable Clean Heat Credits. The PUC shall establish or adopt a system of tradable clean heat credits.
Draft Rules created by the PUC shall be proposed and made available for review and comment. On or before January 15, 2025, the PUC shall submit to the General Assembly final proposed rules to implement the Clean Heat Standard.
Check-back reports, on or before February 15, 2024, and January 15, 2025, the PUC shall submit a written report and oral testimony to the Legislature. These reports shall recommend any legislative action required to enforce the clean heat standard and any action shall be addressed by the legislature in 2025.
