MONTPELIER, Vt. (WCAX) – With just hours to go in the legislative session, state lawmakers are trying to wrap up details of an Act 250 reform package aimed at both expanding housing construction and updating the state’s signature land use law to meet emerging environmental threats.
In a year with soaring property taxes, demographic and workforce concerns, extreme weather, and an ongoing housing crisis, lawmakers are trying to put the finishing touches on a controversial measure a decade in the making.
“We know we need housing in the short-term, but we also need the housing to be climate ready and any new investments we make are in safe and logical places,” said Rep. Amy Sheldon, D-Middlebury.
A complex bill that would update the now 53-year-old Act 250 is nearing the finish line at the Statehouse. The bill sets up a tiered system for Act 250 jurisdiction, loosening land use regulations in developed areas and strengthening protections in areas with sensitive natural resources.
Governor Phil Scott who wants more exemptions for towns has signaled a potential veto, saying he is concerned small towns will be left behind. “Having so much of our state having to go through a regulatory process will impair, I believe, the rural parts of the state,” he said this week.
The bill follows a long-simmering debate over to what degree Act 250 regulations are to blame for Vermont’s housing shortage and whether the solution lies in loosening regulations or more public investment.
“I by no means am saying that Act 250 and zoning changes are going to answer the housing crisis, but we’ve thrown money at the problem. At some point, we need to mold them both together,” said Rep. Ashley Bartley, R-Fairfax.
Others say pressures like short-term rentals and second homes have contributed to the housing crisis. “Act 250 has not been the barrier to housing across the state. It does add cost and maybe it doesn’t add value in certain locations. This bill would remove those costs and barriers in those certain locations,” said Brian Shupe with the Vermont Natural Resources Council.
The House and Senate are still working out their differences on the bill, including negotiations over a tax when homes are bought or sold.