Governor Scott's press conference where the housing executive order was presented.
Vermont Business Magazine Governor Phil Scott today signed Executive Order 06-25, which aims to promote housing construction and rehabilitation and address Vermont’s severe housing shortage. The order addresses regulatory barriers and permitting requirements, energy code standards, and permitting costs associated with housing projects.
The Executive Order includes detailed sections on housing policy, regulatory reform, permitting processes, environmental review, state land utilization, interagency coordination, brownfields redevelopment, and performance monitoring.
“For years, I’ve been sounding the alarm about the housing shortage in Vermont. And despite many agreeing, we haven’t done anywhere near enough to make a real dent in the number of homes we need in Vermont,” said Governor Phil Scott. “This executive order addresses many of the challenges we’re seeing, to help developers and homebuilders, so we can make a dent in the number of homes we desperately need.”
Currently, a quarter of Vermont renters spend more than 50% of their income on housing costs, which will continue to trend in the wrong direction if action isn’t taken. With 40,000 new homes needed by 2030 to meet the demand, Governor Scott’s executive order takes steps to increase the pace of homebuilding in the state.
The order requires performance metrics to be reported to the Governor on a monthly basis. Metrics include the average permit processing times for housing projects, number of permits issued under expedited procedures, the impact on fee revenue and any resulting budget adjustments, as well as regulatory barriers identified and resolved.
STATE OF VERMONT EXECUTIVE DEPARTMENT EXECUTIVE ORDER NO. 06-25 SUMMARY
Promoting Housing Construction and Rehabilitation
WHEREAS Clauses
- The persistent application of well-intentioned, but now counterproductive land use regulations, energy policies, taxes and fees have resulted in a severe shortage of quality, affordable housing...
- Without action, the Housing Unit Deficit will continue to grow, exacerbating our demographic crisis...
- In 2017, a $37 million “Housing for All” bond was passed, emphasizing funding and regulatory reform...
- From 2021–2024, $456 million was invested in housing initiatives...
- These investments have created or preserved about 2,000 units, with 1,000 more expected by 2027...
- New tools include:
- Vermont Housing Improvement Program
- Middle Income Homeownership Development Program
- Rental Revolving Loan Fund
- Manufactured Home Improvement and Repair Program
- Healthy Homes
- Rapid Response Mobile Home Infill Program
- Despite these efforts, Vermont still faces an annual Housing Unit Deficit of over 5,000 units...
- Act 181 of 2024 expanded Act 250 regulation, limiting long-term exemptions...
- Regulatory barriers and permitting delays increase costs and impair opportunity...
- Accelerated executive action is needed...
- The Governor has authority under Vermont law to direct executive agency actions...
SECTION I: Building Energy Code Reform
1.1 Reinstatement of 2020 Standards
- Builders may comply with either 2020 or 2024 RBES/CBES.
- Land Use Review Board shall update Act 250 materials.
- Public Service Department and ACCD must notify stakeholders.
- Training and education to continue.
1.2 Implementation Review
- Report due by May 31, 2026 analyzing:
- Cost impacts
- Compliance trends
- Recommendations for future updates
- Regional consistency
SECTION II: Expedited Permitting and Review Processes
2.1 Shortened Review Timelines
- Prioritize housing-related applications.
- Establish timelines for all reviews.
- Expedite proceedings and reduce discretionary delays.
- Concurrent permit processing required.
- Decisions must be issued within 60 days.
2.2 Fee Relief
- Proposals to reduce fees for multi-family housing.
- Deferred payment options.
- Fiscal impact reporting due by Dec 1, 2025.
2.3 Priority Processing
- Housing-related applications receive priority in agency workflows.
SECTION III: Environmental Review Streamlining
3.1 Wetlands Modification
- Class II wetlands limited to mapped features.
- Buffer zones reduced to 25 feet.
- Rulemaking to begin by Feb 1, 2026.
3.2 Residential Housing Appeals
- Judiciary requested to expedite housing-related appeals.
3.3 Streamlined Permitting Processes
- Monthly meetings led by ACCD Secretary.
- Digital Services to assign Project Manager.
- Multi-disciplinary team (MDT) to prioritize housing projects.
- Weekly reports to Governor with KPIs.
- Common entry system evaluation due by Dec 1, 2025.
- ANR to update permitting guidance by July 1, 2026.
SECTION IV: State Land Utilization
4.1 Inventory of Properties
- Agencies to submit inventory of underutilized properties by Dec 1, 2025.
4.2 Expedited Disposal
- Streamlined procedures for surplus land.
- Preference for housing developers.
4.3 Fire Safety Inventory
- Inventory of substandard rental units due by Dec 1, 2025.
SECTION V: Interagency Coordination
5.1 Governor’s Housing Leadership Team
- Bi-weekly meetings to advise Governor.
- Includes Secretaries and Commissioners from key agencies.
- Reports on homelessness interventions and housing strategies.
SECTION VI: Brownfields and Contaminated Sites
6.1 BERA Program
- Executive Order 08-19 extended.
- Annual reports due Nov 15, 2025 and Mar 31, 2026.
- Recommendations on barriers and standards.
📊 SECTION VII: Monitoring and Accountability
7.1 Performance Metrics
- Quarterly reports starting Jan 1, 2026:
- Permit processing times
- Expedited permits
- Fee impacts
- Regulatory simplifications
7.2 Semi-Annual Review
- Comprehensive assessment due Jan 31, 2026 and every six months thereafter.
SECTION VIII: Legal Safeguards and Limitations
8.1 Federal and Safety Compliance
- No compromise to health, safety, ADA, or federal laws.
8.2 Statutory Limitations
- Agencies to identify needed statutory clarifications.
- Emergency rulemaking recommended where appropriate.
SECTION IX: Effectiveness and Duration
- Takes effect immediately.
- Remains in effect unless modified or extended.
- Agencies must notify Governor if unable to comply.
IN WITNESS WHEREOF, I have hereunto set my hand and caused the Great Seal of the State of Vermont to be affixed this 17th day of September, 2025.
Philip B. Scott Governor
Jaye Pershing Johnson Secretary of Civil and Military Affairs
Executive Order 06-25 can be found by clicking here.
9.17.2025. Governor. 109 State Street | The Pavilion | Montpelier, VT 05609-0101 | www.vermont.gov
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