Vermont governor sounds alarm on housing issues

Vermont currently operates with divided government: while the governor’s mansion is inhabited by a Republican, both houses of the legislature maintain Democratic majorities. But Scott is a political moderate and disclosed that he voted for the Democratic nominees in both the 2020 and 2024 presidential elections.

Two bills are currently being deliberated in both houses of the state legislature: S.127 (and its House equivalent) is described by nonprofit, nonpartisan policy advocacy group Campaign for Vermont as “a comprehensive legislative proposal aimed at addressing housing shortages and improving housing accessibility, affordability, and infrastructure in Vermont.”

Phil Scott

It would make changes to existing housing statutes and seek to “incentivize rental housing rehabilitation, manufactured home improvements, infrastructure development, and protections for vulnerable populations,” among other provisions. But the legislature has not moved to enact meaningful housing legislation with the speed that the issue requires, the governor said.

“For the last eight years, I’ve been sounding the alarm about our housing crisis,” the governor said in a statement. “Vermonters across the state are impacted by a lack of housing options — from renters, to first-time homebuyers and retirees looking to downsize. That’s why, in January, I proposed legislation to move the needle on the housing we desperately need.”

The governor’s proposals included expanding infrastructure for housing and flood recovery by including a project-based option to put smaller towns on a more level playing field with cities in accessing resources, and he also proposed reforming the permitting process, suggesting the current system is too onerous and costly while slowing down housing production.

“We also asked the legislature to expand and extend the Act 250 exemptions that are expiring soon, to give rural communities opportunities to thrive and grow,” the governor said, referring to exemptions on a land-use development law that he said could add to the state’s supply. “In addition, we proposed reforms to the wetlands permitting and appeals process which will help places like Barre, Montpelier and Plainfield, as they recover from recent flooding.”

But the progress has been slow-going, and the governor is concerned that housing was not prioritized this legislative session.

“As the legislative session comes to a close, I’m concerned we have not done nearly enough on housing,” he said. “With 41,000 more homes needed by 2030 (just to catch up) we cannot afford to kick the can down the road again. Last session, the legislature passed 70 bills in three days, so I’m confident there is still time to pass a housing bill that actually helps Vermont, because without action, we will fall further behind.”

Other housing-related tensions have emerged between the governor and Democrats in the state legislature over the past few months, including a Democratic desire to extend a homelessness assistance program allowing those at risk of living on the streets to temporarily shelter in motels. The governor’s office has indicated he may not be able to support a bill that included $1.8 million in funding for the program which shelters around 1,400 people, contained in a line-item for a larger budget bill, according to news outlet Vermont Public.

The governor’s office has cited concerns over funding for the program, particularly at a time when there is “uncertainty” over housing funding at the federal level according to the secretary of the governor’s administration in February.

Since then, a version of the assistance program has been included in a new budget bill which included caps on the number of nights a beneficiary can use it, which was lambasted by advocates for unhoused people.