This commentary is by Don Keelan of Arlington, a retired certified public accountant.
Several weeks ago, state Rep. Seth Bongartz, D-Manchester/Arlington, introduced H.68, a 28-page act “removing State and municipal regulatory barriers for fair zoning and housing affordability.”
The good news: Montpelier recognizes that Vermont has a housing crisis. The bad news is that Vermont towns and villages may be letting in a “Trojan horse.”
Never lose sight that those in the Statehouse fully subscribe to the “never let a crisis go to waste” mantra of Rahm Emanuel, the former Chicago mayor and now U.S. ambassador to Japan. In this case, Vermont’s housing crisis.
According to writer Emerson Lynn, the Vermont Finance and Housing Agency (one of Vermont’s largest nonprofits since 1974) recently noted that Vermont needs to build 40,000 new housing units by 2030, only seven years away. Lynn notes that the bill will ban towns and villages from continuing the intent of single-family housing zoning.
Some of us have been in the trenches regarding the development, construction and selling of housing units. In my 50-year career, I brought online over 3,000 units in Vermont and points south.
From my perspective, the crises in Vermont housing are attributed to not only zoning but a host of issues: a lack of buyer funds for a down payment, insufficient annual income to qualify for a 30-year 90% mortgage with a 6% interest rate (an income of $110,000 is required for a $270,000 mortgage), no municipal wastewater/potable water, lengthy time to gain approvals, and shortage of trades (and if they are available, hourly rates for electricians/plumbers now reaching $100 per hour).
If more than the above is needed to understand why new housing is so rare, then delivering over 5,000 units yearly is a pipe dream. There are other impediments to consider. Navigating floodplain rules and wetlands regulations is a career in itself. Moreover, it is near impossible to obtain price lock-ins longer than 30 days from concrete, lumber and other building suppliers. Don’t forget the neighbor, who, acting pro se, can hold up a job through litigation for years for less than $100.
See why a 1,000-square-foot house can cost $300,000 — $300 per square foot.
We don’t need the state to step in under the guise of a housing shortage and control local zoning. The state already did this with education when there was a funding crisis; welcome Act 60/48. Also, the climate crisis has justified the state to take over our fossil fuel usage.
If the Legislature wishes to step in and help alleviate a significant aspect of the housing crisis, it should give more incentives to towns and villages to amend their zoning. The state could also provide loans so towns could administer buyer lines of credit for down payments and second mortgages.
If one wishes to go to our state schools (or even better, establish an apprentice school) to learn the construction trade, the tuition could be free with a commitment to work in Vermont for five years after graduation.
The Legislature can make it possible for a neighbor who brings litigation and is denied to be responsible for all litigation costs, the cost of delay, and, if determinable, imputed loss of income by the developer. The uncertainty factor for the housing developer in gaining approvals would significantly diminish.
In years past, the state has taken over our education and mental and health care systems and moved into our homes and businesses under the disguise of a climate crisis. We know too well how our education and mental health care systems are performing.
We are indeed in another crisis. Hopefully, we can work through it without Montpelier wheeling in its Trojan horse to take over local zoning by way of H.68.
