On September 17, Governor Scott issued Executive Order No. 06-25.  This order may be the most ambitious reform effort to date designed to address Vermont’s inadequate housing supply through various regulatory, policy and administrative reforms.  A copy of the full executive order can be found at https://governor.vermont.gov/document/executive-order-no-06-25.

In issuing the order, the Governor observes the current dire need for the construction of more housing reasonably affordable across the full spectrum of Vermonters.  Notwithstanding a general recognition that such a housing crisis exists, the Governor has found the efforts made to date by the General Assembly and others to be ineffective in addressing the crisis meaningfully.  The executive order focuses on areas within the purview of the Governor’s executive authority and implements steps designed to facilitate the timely review, approval and construction of housing across Vermont.  A summary of the order’s key elements follows:

Building Energy Code Reform

  • Due to the increased costs of complying with the 2024 Residential Building Energy Standards and Commercial Building Energy Standards, building construction projects commencing on or After July 1, 2024 shall have the option of complying, instead, with the 2020 RBES and CBES.
  • The Department of Public Service will submit a report by May 31, 2026 analyzing the cost impacts of the RBES and CBES on housing affordability.

Expedited Permitting and Review Processes

  • All state agencies and departments, and boards and commissions with a majority of members appointed by the Governor, will prioritize the review of applications for residential housing projects.
  • Discretionary review periods should be reduced with the goal of halving the time to review and approve housing projects.
  • Review applications relating to the same project concurrently instead of sequentially.
  • Decisions to be issued within 60 days of hearing completion for housing projects.
  • Administratively and technically complete permit applications for housing projects to receive priority processing ahead of other non-housing projects.

Environmental Review Streamlining

  • For housing and mixed use projects with a housing component located in key areas designated for development and growth, Class II wetlands are limited to those features identified on the most current VSWI maps, with no state permits required for impacts to unmapped Class II wetlands.  Class II wetland buffers reduced to 25 feet.
  • Request that the judiciary prioritize and expedite residential housing appeals.
  • Collaboration and coordination across state agencies to improve and expedite the revitalization or building of housing units.

State Land Utilization

  • Each state agency or department owning real property to submit inventory of un- and under-utilized properties suitable for multi-family housing, housing infill, mobile home park and shelter construction and rehabilitation.
  • Development of streamlined procedures for utilizing surplus state land suitable for housing.

Brownfields and Contaminated Sites

  • Extension of 2019 Brownfields Economic Revitalization Alliance (BERA) Program directed at facilitation of environmental mitigation and redevelopment of brownfields.

Some of these reforms should generate results almost immediately.  The practical effect of other measures will be better known as they are implemented.  Overall, however, this Executive Order should bend the regulatory curve for housing projects in Vermont.  While broader legislative reforms are still needed, Governor Scott’s Executive Order is an important step in the right direction in addressing Vermont’s pervasive housing shortage.

Chris Roy is a litigation director in the Burlington office of Downs Rachlin Martin PLLC.  He chairs DRM’s Litigation Group and is a member of the firm’s Complex Land Use & Development Group.  Chris has been actively involved in housing policy and permit reform efforts for years, having served as a member of the former Vermont Environmental Board, as a member of the Williston Selectboard and, most recently, as Chair of the Chittenden County Regional Planning Commission.  He frequently testifies before legislative committees on issues relating to housing and permit reform.

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Complex Land Use & Development