Act 250 Interim Regulatory Exemptions in place to create more housing

New Tool Maps Areas Where Housing Can Be Built Faster and More Affordably Until 2027

Vermont Business Magazine The Department of Housing and Community Development and the Natural Resources Board have released the Act 250 Interim Exemption Map to help developers and investors create and improve housing that is more affordable.

This new interactive map is an exceptional planning tool and shows potential areas where housing may be built today without triggering Act 250 review. The interim Act 250 exemptions displayed on the Act 250 Interim Exemption Map will be in place until 2027 when the larger Act 181 reform begins to be implemented. Act 250, Vermont's landmark land use and development law, will be modernized over the next five years as part of Act 181, which passed during the 2023/2024 legislative session. Before Act 181 takes full effect in 2027, the public will have opportunities to engage and shape its implementation.

“My team and I have focused on the urgent need to create housing faster and more affordably. While we need more lasting tools in the toolbox, these interim exemptions in Act 181 will help us do that,” said Governor Scott. “Reforming Vermont's regulatory framework is an important part of our overall strategy to ensure that every Vermonter has a safe, affordable place to call home.”

These interim Act 250 exemption areas will allow the development of housing now in designated downtowns, villages, and other desirable areas that already have sufficient infrastructure as well as nearby jobs, amenities, schools, and transportation options.

“These new exemption areas are a breakthrough, but they don’t get us to the finish line,” said Department of Housing and Community Development Commissioner Alex Farrell. “We need more housing now. We hope builders will take advantage of this limited window where development can happen more affordably without Act 250 review, but we also need long-term solutions allowing for the creation and rehabilitation of units in every corner of Vermont.”

The Act 250 Interim Exemption Map is interactive and user-friendly. Users can learn if a property may be eligible for the interim Act 250 exemptions. The Natural Resources Board’s website provides additional guidance on the interim exemptions and how to use the map.  You can also learn more about Act 181 by reading DHCD’s legislative summary.  The law as enacted is available here.

“The long-term regulatory changes stemming from Act 181 will take time to implement, so the interim exemptions are invaluable to speed up housing production now by removing Act 250 review in smart growth locations,” said Natural Resources Board Chair Sabina Haskell. “These reforms are important to housing and targeted to continue protecting our natural resources.”

For more information, visit the Interim Act 250 Housing Exemptions page on the Natural Resources Board website.

Interim Exemption List 

Priority Housing Projects

Designated Downtown Housing

Designated New Town, Growth Center, and Neighborhood Development Area Housing

Chittenden County Transit Corridor Housing

Designated Village Center Housing

Commercial to Residential Conversions

Accessory Dwelling Units

New Permanent Exemption

Hotel/Motel to Affordable Housing Conversions

Act 181 also provides one permanent housing exemption for the conversion of an existing hotel or motel to permanently affordable housing does not require an Act 250 permit amendment. This exemption applies state-wide.

Repeal

Repeal of 24-unit exemption and 1 unit = 4 units provision

Previous statutory language allowing for the construction of housing projects with less than 25 units in certain designated areas without a permit has been repealed. Additionally, statutory provisions allowing four units to be counted as one unit has been repealed.

About the Department of Housing and Community Development

The Department of Housing and Community Development (DHCD) works to support vibrant and resilient communities, promote safe and affordable housing for all, protect the state’s historic resources, and improve the quality of life for Vermonters.

Source: 8.22.2024. Montpelier, Vt. – The Department of Housing and Community Development

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