[G]ov. Phil Scott on Friday outlined initiatives that he says would encourage developers to build more affordable housing. One of those proposals would exempt certain housing projects from Act 250 review.
In addition, Scott called for a $35 million bond to finance affordable housing projects and the expansion of tax credit and tax financing programs for downtown developments.
“Rental housing at any price” would be exempt from the state’s land use law, under Scott’s proposal. The governor says affordable housing is badly needed and even units at higher prices could alleviate pressure on the rental market.
A spokesperson for an environmental group, the Vermont Natural Resources Council, said her organization had concerns about that part of Scott’s proposal.
Scott touted the housing initiatives as part of his effort to make Vermont more affordable. He said a lack of reasonably priced housing was an obstacle to businesses locating in Vermont.
“A gap” exists between the need and availability of reasonably priced housing, he said.
The concepts focused largely on concentrating more housing in downtown and village centers. Scott said several cities and towns have successfully leveraged state funds for private investment to support redevelopments.
Scott was joined at a news conference by several Vermont mayors, historic preservation supporters, environmental and housing groups.
Kate McCarthy of the Vermont Natural Resources Council said after the news conference that her organization did not support Scott’s proposal to exempt rental developments from environmental review. She said VNRC opposed further “incremental changes that would weaken Act 250″ and the rental housing exemption was the only part of Scott’s plan her group did not support.
Scott also wants to waive Act 250 review for already approved projects that developers want to expand.
The governor called for expanding “tax increment financing” programs where communities can use the new, additional taxes a project creates to improve the underlying infrastructure, such as roads.
Scott also suggested adding $200,000 to the Downtown and Village Center tax credit program, which is designed to encourage investment in older and historic buildings. The governor is also interested in tax breaks for people who buy houses, renovate them and quickly sell them.
The governor’s proposals grew out of Act 157, which in 2016 directed the Agency of Commerce and Community Development to develop recommendations to create more affordable housing.
