Vermont Business Magazine The Vermont Legislature's joint Committee of Conference on S.325 voted May 21 to recommend a final version of the land use bill designed to reform Act 181. Governor Scott vetoed Act 181 in 2024, largely due to the expanded Act 250 jurisdiction via Tier 3 and the ‘Road Rule.’ The Legislature overturned the veto, clearing the way for these new Act 250 triggers. Last Thursday the Conference Committee recommendation included repeal of Tier 3 and the Road Rule but does not include several provisions passed by the Senate to expand and improve pro-housing Act 250 exemptions, according to Alex Farrell, Commissioner of the Vermont Department of Housing and Community Development, in particular those regarding wetlands rules.
The provisions omitted from the final committee recommendation include:
- an extension of the interim Act 250 housing exemptions to 2030;
- the removal of certain arbitrary parcel size constraints;
- an expansion to include more rural communities in the interim exemptions, and
- an expansion of the Priority Housing Project to encourage mixed-income and affordable housing development throughout the state.
Farrell issued the following statement regarding the vote:
“In the midst of a deep housing affordability crisis, this joint committee cast aside a series of thoughtful, reasonable pro-housing changes the Senate already passed. In a time of great urgency to create more housing for Vermonters, committee leadership is again adopting a half-hearted approach to undoing the poor policy decisions of the recent past, and this is insufficient.
"So, while some legislators like to talk about our housing crisis on the campaign trail, they refuse to make systemic policy change that would actually benefit Vermonters.
"Giving the Environment and Natural Resources committees the vast majority of jurisdiction over housing policy results in bad outcomes for would-be homebuyers, home builders, and Vermonters in general. The passage of floor amendments in both the House and the Senate against the will of environmentally focused committees is evidence that they’re out of step with Vermonters and legislators on both sides of the aisle. I find it utterly disappointing that many still refuse to prioritize housing and rural economic development.”
The Legislative Committee on Administrative Rules (LCAR) on May 21 had objected to wetlands regulatory rule changes that the Scott Administration is implementing and said would make it faster and less expensive to build homes in the state. Committee members voted 5-3, along party lines.
The rules are part of a series of changes outlined in the Governor’s Executive Order 06-25 (Sept 2025) which addresses Vermont’s housing affordability crisis based on where Vermonters have said they want housing — such as downtowns and village centers — and with respect and consideration for the need to protect wetlands and other natural resources.
“I am disappointed by LCAR’s vote objecting to these important wetlands rules,” said Commissionner Farrell. “The Governor’s order was designed to increase homebuilding in targeted areas primed for growth such as downtowns, village centers, and neighborhoods. These designated areas account for less than three percent of Vermont’s total land area. We will continue to collaborate with our colleagues in the legislature to address Vermont’s growing housing crisis, and this will require moderate regulatory changes to the counterproductive policies of the past. Impeding progress on pro-housing, smart-growth regulatory changes undermines housing availability and affordability. The economic security of our communities depends on our willingness to make housing easier to build and buy. Housing is fundamental to the future of Vermont, as it strengthens the education, healthcare, and social services we all rely on. That’s why this committee vote is so disappointing, especially for our smaller communities and struggling economic centers. Nevertheless, we are undeterred and focused on the housing affordability goals the Governor has specified.”
Source: 5.22.2026. Agency of Commerce and Community Development
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Vermont Business Magazine