Montpelier
Scott called Friday for several measures: floating a $35 million bond to finance affordable housing projects, widening two tax programs designed to ease development and allowing some projects to skip review under the state’s chief environmental law.
Those exemptions would include projects that were “rental housing at any price” built in qualifying downtowns. Scott defended the move, saying affordable housing was badly needed and that even units at higher prices alleviated pressure on the market. A spokesperson for an environmental group, the Vermont Natural Resources Council, said her organization had concerns about that part of Scott’s proposal.
Scott touted the housing initiatives as part of his effort to make Vermont more affordable. He said a lack of reasonably priced housing was an obstacle to businesses locating in Vermont.
Despite hard work, Scott said “a gap” exists between the need and availability of reasonably priced housing.
The concepts focused largely on concentrating more housing in downtown and village centers. Scott said redevelopments in several cities and towns had been successful, with state funds leveraging private investment.
Scott was joined at a news conference by several Vermont mayors, historic preservation supporters, environmental and housing groups.
Kate McCarthy of VNRC said after the new conference that her organization did not support Scott’s proposal to exempt rental developments from Act 250 review. She said VNRC opposed further “incremental changes that would weaken Act 250.” She said the rental housing exemption was the only part of Scott’s plan her group did not support.
Scott also said he would support waiving Act 250 review for projects already approved that want to expand.
The governor also called for expanding “tax increment financing” programs where communities can use the new, additional taxes a project creates to improve the underlying infrastructure, such as roads.
Scott also suggested adding $200,000 to the Downtown and Village Center tax credit program, which is designed to encourage investment in older and historic buildings. The governor also said he would support a proposal to lessen the tax burden for people who buy houses, renovate them and then quickly sell them.
The proposals outlined grew out of Act 157, which in 2016 directed the Agency of Commerce and Community Development to develop recommendations to create more affordable housing.
Scott emphasized housing at any cost level was a benefit because it freed up housing on the lower cost levels as homeowners moved to more expensive housing.