Vermont Has a Plan for Creating More Housing

In early June 2023, a month before Vermont and its state capital of Montpelier became overwhelmed by heavy rains and flash flooding, Governor Phil Scott signed the Housing Opportunities Made for Everyone (or HOME) Act, a bill that will help communities throughout the state expand housing availability, affordability and housing-type options. 

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Vermont’s housing reform law was kickstarted by work the state engaged in with the Congress for the New Urbanism. Learn about the collaboration and the benefits of implementing incremental, targeted zoning code changes by ordering or downloading Enabling Better Places: A Handbook for Improved Neighborhoods, a free publication by AARP and CNU.

The new rules, which will be fully implemented by December 2024, are a key ingredient for meeting Vermont’s dire need for increased and updated housing, and especially housing that is affordable and suitable for both young and much older adults.

With 20.6 percent of the state’s population currently age 65 or older, Vermont is the nation’s third oldest state after Maine (21.8 percent) and Florida (20.6 percent). Rental housing prices can be very high, especially in locations such as the ski communities, where young workers are needed. (A one-bedroom apartment in Stowe, for instance, rents for $1,900 a month.)

By changing outdated state and local zoning codes to be more aligned with 21st century realities, the legislation acknowledges that the Vermont’s longstanding zoning regulations, land use policies and lengthy permitting processes haven’t been meeting the needs of residents.

“This bill creates opportunities to create new and more dense housing in the places we want it, rehab previously offline units, and reform our land and zoning laws, all of which will begin to address this housing crisis,” said Josh Hanford, commissioner of the Vermont Department of Housing and Community Development.

The HOME Act opens doors to more housing production by focusing growth on areas where development already exists and makes sense, such as by allowing for higher density development in areas that are already equipped with sewer and municipal water service. (Rural regions that are dependent upon septic and well water systems are not suitable for increased housing and development.)

Among the housing issues addressed by the legislation:

PROBLEM: Large lot-size minimums (such as zoning codes that call for at least one-acre per single-family home) prevent the development of walkable, sustainable, all-incomes neighborhoods that can alleviate a housing shortage and jumpstart a local economy.

SOLUTION: The HOME Act requires five or more units per acre in areas served by water and sewer. Smaller homes better meet the needs of downsizing older adults and newly launching young adults. 

PROBLEM: Zoning codes that require an excessive amount of parking perpetuate sprawl, necessitate auto-oriented (and emission-heavy) transportation systems, and use land that could be used for housing.