WORKFORCE HOUSING

The Vermont Chamber has long advocated for increased housing supply by addressing root causes and barriers to development. Governor Scott echoed this urgent need, calling for the construction of 8,000 new homes annually—a figure Vermont is far from achieving. The speech advocated for treating housing development as an emergency by streamlining regulatory barriers, investing in infrastructure, and revitalizing workforce. Affordable housing for all incomes is critical to retaining employees, attracting new talent, and fostering economic growth.

Vermonters are grappling with rising costs, driven by demographic pressures and systemic issues in areas such as education finance spending, housing, and healthcare. Based on data compiled by the Vermont Futures Project, our state must add an average of 13,500 people to its workforce annually through 2035 to keep the economy thriving in the face of demographic shifts. Meanwhile, meeting current housing demand will require tripling Vermont’s housing output to produce 36,000 new units by 2029.

Input on Vermont’s housing crisis continued this week in both the House and Senate. In addition to legislative focus on this issue, housing advocates gathered under the new coalition, Let’s Build Homes, launching a campaign to advocate for increased housing development for all income levels across the state.

Governor Scott released held a press conference to outline his housing recommendations for the biennium focusing on appeal reforms, infrastructure, and land use regulations. These measures are for addressing workforce housing needs and reducing regulatory barriers to development.

The Senate Economic Development, Housing, and General Affairs Committee and the House General and Housing Committee held a joint hearing to review the Administration’s omnibus housing bill—a collaborative effort demonstrating their commitment to addressing Vermont’s housing crisis this session. The bill includes funding for infrastructure, investments in housing development programs, reforms to housing appeals, and changes to last year’s Act 250 reforms. Legislators were keenly interested in the presentation and engaged in dialogue as well as debate, particularly with proposed changes to last year’s Act 250 bil

Vermont needs at least 7,000 additional housing units to meet demand, support employers, and sustain economic growth. The budget fully funds the Vermont Housing and Conservation Board with $37 million and provides $4 million for the Vermont Housing Improvement Program to help small-scale landlords bring units to market faster. Additionally, a one-time $40 million investment in water, sewer, and stormwater infrastructure will unlock stalled housing projects. These measures support the Chamber’s call for workforce housing solutions that directly address Vermont’s labor shortage.

This week, Vermont Futures Project Executive Director, Kevin Chu, testified before the House General and Housing Committee and the Senate Economic Development, Housing, and General Affairs Committee, presenting key insights from the Vermont Economic Action Plan. Testimony brought forth conversations about actionable steps to address the root cause of many challenges impacting Vermont businesses, focusing on a future of abundance rather than scarcity. The ability to grow businesses in Vermont ties directly to housing availability and infrastructure. The plan sets a target of 350,000 non-seasonal homes by 2035 and calls for reduced development timelines alongside 40% reductions in regulatory costs. Legislators engaged with the presentation content and discussed the intersections of growth and migration with infrastructure and transportation improvements.

This week, legislators continued to explore approaches to address Vermont’s housing needs while bolstering economic growth statewide. Highlights include a growing focus on offsite construction techniques that promise both cost savings and improved operational outcomes, as well as the pivotal role of the Vermont Housing Improvement Program (VHIP) in revitalizing over 1,000 housing units through strategic grants and loans. Additionally, initiatives like the Housing Infrastructure Initiative (HIT) and the Administration’s Strategic Projects for Advancing Rural Communities (SPARC) are under consideration to modernize community development financing, offering streamlined structures and enhanced support for local municipalities. As housing committees move toward integrating select elements from the Administration’s omnibus housing bill into new legislative proposals, the Vermont Chamber remains dedicated to engaging with lawmakers to advocate for strategic funding, robust infrastructure support, and regulatory reforms—ensuring a dynamic, accessible, and resilient housing market for all Vermonters.

The House General and Housing Committee introduced a bill aimed at housing improvement and development. Initial testimony and legislators’ comments indicate that this bill will be an important starting point to addressing Vermont’s housing crisis this year.

The House General and Housing Committee is evaluating strategies to address Vermont’s housing crisis, with a focus on affordability, infrastructure, and sustainable growth. Lawmakers are considering proposals to expand the Vermont Rental Housing Improvement Program (VHIP) and support manufactured home improvements, alongside investments in municipal water and sewer systems. Discussions also include streamlining development regulations and the use of financing tools such as project-based Tax Increment Financing (TIF). As the committee refines these proposals, the Vermont Chamber remains actively engaged to ensure that housing policies support economic growth and prosperity.