This commentary is by Rep. Tom Stevens, D-Waterbury, chair of the General, Housing and Military Affairs Committee in the Vermont House of Representatives. He has been a member of that committee since 2009.
Vermont is in the midst of what is rightly considered a housing crisis. We are not alone in this — the whole country is suffering through one.
Here in our state and across the nation, the crisis is really limited to housing that is affordable, which includes rental housing.
I have served on the General, Housing and Military Affairs Committee since 2009, and I can attest to this crisis, having had a seat at the table. Our committee has been steeped in the nuanced policy required to build more housing, from funding to zoning to landlord-tenant law, and we have advocated for changes that have happened far more incrementally than desired, leaving us with a gap in new, livable and affordable housing that’s built in environmentally and economically sound ways.
Due to federal funding available through the American Rescue Plan Act of 2021, Vermont now has an opportunity to provide relief in several different ways:
- By investing in new rental and single-family home restoration and construction.
- By creating a rental housing and safety program that will relieve pressure on overburdened town health officers.
- By providing rental and mortgage assistance to Vermonters whose incomes have been stressed by the Covid-19 pandemic.
Bills currently moving through the House of Representatives look to provide funding and policy that will make a dent in our critical housing needs and, if certain ARPA-funded pilot programs are successful, will provide a template for future investment on a state and federal level.
Using both general fund and ARPA funds, our housing bills and other appropriations are clear messages to Vermonters that we are doing what we can — and teaming up with whomever we can — to provide safe, healthy, affordable and available housing as soon as we can.
And we’re building housing in ways that ensure those receiving benefits are spending them wisely. Housing policy that provides investment with accountability is the right choice.
As of 2022, vacancy rates for traditional long-term rentals are hovering below 2%, far below the 4-5% needed to provide stability in the rental market. One consideration for this number is the increase in short-term rentals — unregulated units and homes that are rented to tourists, which can relieve owners of some of the “headaches,” regulations and accountability that property owners of long-term rentals must achieve. More than 8,000 units and homes are used for this purpose.
A rental registry would help the state track these units and the conversion rate from long-term to short-term, which would help us develop better policy on how to invest in housing that is affordable.
The Vermont Rental Housing Improvement Program will provide up to $20 million of incentives to property owners to bring rental units back online if they are not code-compliant, and it will provide incentives for property owners to develop accessory dwelling units — formerly known as mother-in-law apartments — in owner-occupied dwellings.
S.226 also has a “missing middle income” housing proposal, which would invest up to $15 million to create housing for Vermonters whose income is between 80% and 120% of the area median income. It creates a subsidy for builders who cannot build a modest starter home because the cost to build is higher than the appraised value. It would also provide varying levels of subsidy to the homebuyers, who may not otherwise be able to afford a mortgage at this level. This is a pilot program using $15 million of ARPA funding.
The pandemic has hurt some homeowners. S.226 allows municipalities to provide homeowners who may be behind on their property taxes time to apply to the Vermont Housing and Finance Agency’s Homeowner Assistance Program. Eligible Vermonters behind in their mortgage and their taxes can receive assistance without fearing loss of their home due to a tax sale.
S.226 also proposes to form a Land Access and Opportunity Board, which will develop policies to assist populations in Vermont that have historically been denied easy access to the wealth derived from home and land ownership. Complementing this section, we are proposing an appropriation to the Vermont Housing and Finance Agency that can be used to distribute down payment assistance grants to first-generation homebuyers, among others.
Vermont has a once-in-a-lifetime opportunity to provide funding for difficult projects, and to align our needs with our policy. Developing safe and affordable housing for as many Vermonters as possible with these funds will help us all as we navigate what we hope to be the return to “normal.”
