In the first week of the session, the House Committee on General and Housing came out of the gate with a sharp focus. The housing crisis is real, state dollars are limited, and lawmakers are seeking clear answers on what is working, what is not, and what comes next. The Vermont Chamber of Commerce testified with firsthand insights from businesses, builders, and communities struggling with housing shortages that directly affect workforce recruitment and retention. Other organizations reinforced these themes, pointing to both effective tools and persistent barriers.

Several state housing programs are demonstrating real results. The Vermont Housing Improvement Program (VHIP) in particular is accelerating unit creation while also bringing new builders into the market, including small, local, and first-time developers who are critical to expanding housing production statewide. Programs such as VHIP, the Middle-Income Homeownership Development Program, and the Rental Revolving Loan Fund are stretching limited funding and lowering per-unit costs, outcomes that are especially important as resources tighten.

Testimony also made clear that regulatory and implementation challenges are limiting the full potential of these investments. Issues with the rollout of Act 181 and HOME act, persistent challenges with exclusionary zoning as well as restrictive deed covenants and bylaws, and increasing regulatory gatekeeping are adding cost, delay, and uncertainty to projects. These hurdles reduce the return on public investment and make it harder for developers to move housing projects forward.

These concerns mirror what Vermont employers are reporting. The 2025 Vermont Business Climate Survey found that housing availability and affordability remain among the top barriers to hiring and business growth, with many employers linking workforce shortages directly to housing constraints. The Chamber’s testimony reinforced that without addressing regulatory and implementation barriers, even strong programs will struggle to deliver housing at the scale Vermont needs.

Housing is economic infrastructure and central to Vermont’s long-term growth. The Vermont Economic Action Plan identifies housing production as a foundational strategy for supporting workforce growth, affordability, and economic resilience. The Vermont Chamber will continue working with lawmakers to protect and scale what is working, improve implementation where it is falling short, and ensure state policy supports the housing supply Vermont’s businesses, workers, and communities depend on.