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by Don Keelan
In Vermont, no day goes by without another news story about the lack of affordability, workforce, and senior housing.
A colleague of mine, who developed over 3,000 housing units in five states, including more recently 50+ homes in Vermont, partially explained the lack of housing.
He noted that developing a housing project is similar to climbing an Egyptian or Mayan pyramid; to do so, you must climb over huge blocks from the base to the vertex.
He went on to say, metaphorically, to develop housing in Vermont, those blocks have increased and are much higher.
The first block, the base, is the regulations a developer must follow: the local and state bodies a developer must navigate consist of dozens of agencies, boards, or commissions. Many small housing developers are eliminated at this stage because they lack the personnel or financial resources to “make the climb.”
Filing with ACT 250 for 30 housing units, costing $15 million, requires up-front fees of $114,750 to document how a developer plans to mitigate the 37 provisions included in ACT 250’s 10 Criteria.
The second block to overcome is whether you will ever reach the vertex, not knowing how much time and money it will take to gain approvals. This is not measured in months but in years.
Assuming the developer has made it over the first two blocks, the third is euphemistically referred to as the “abutters block,” neighbors who object to the project and, for less than $100, bring a lawsuit to block the “climb.”
Having completed the first three blocks, the developer is ready to build, but is there a workforce available? As is often the case, will bringing in a skilled workforce from out-of-state to perform the 12 different trades and house them during the short construction window due to Vermont’s weather be necessary?
The fifth block is where the developer interfaces with the home buyer. The latter must be able to provide a $100,000 down payment and closing funds to acquire the $400,000 three-bedroom house.
The sixth obstacle is closing an 80% home mortgage, $320,000, with an annual interest rate of 7%. This is no longer just signing a note and mortgage deed. The lender requires the buyer to have a yearly income of at least $146,000 for the above before any student, car, and credit card payments that exceed one year.
Solutions.
To build the 36,000 units of housing Vermont needs by 2029, the following might be a way to meet this ambitious goal:
All local and state approvals must be granted within 90 days of filing the project’s final plans and specifications. If not addressed by then, the project is assumed to have been approved and permits issued.
Towns will have pre-designated housing sites that the towns and the State have reviewed for all site plan/regulatory requirements.
For abutters, at least ten joiners must wish to appeal the approvals. If their suit is denied, they must post a bond with the State large enough to cover the developer’s costs related to delays, fluctuations in interest rates, materials, labor, and legal fees. The State is currently addressing this issue.
The Agency of Education, along with local school districts and building trades associations, is ramping up tech school programs to teach students the construction trades locally. In doing so, it provides a stipend to each student during their enrollment in the apprenticeship programs.
To cover the funds required to buy, an organization could be created, funded with a revolving $500 million capitalization, to provide first-time buyers with the money they need. The funds would be secured by a second mortgage at an interest rate of 25% of the mortgage rate.
The WSJ reported on Feb.15, 2025, that California Gov. Gavin Newsome issued an executive order suspending all regulations on building houses. It was to build homes that the recent fires had destroyed. The question is being asked, “If the only way to rebuild was to suspend the regular rules, why were those rules there in the first place?” For purposes of full disclosure, the colleague noted above is this columnist.
The author is a U.S. Marine (retired), CPA, and columnist living in Arlington, VT.
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Categories: Commentary, Housing
Vermont is facing the most corrupt take over in the guise of affordable housing.
Don is correct on much of his assessment.
However, the NGO’s and Non-profits running/ruining the state are dead set on getting apartment complexes across our state with new water and sewer plants. This is not for the average Vermonter to own a home, quite the opposite it is tenant housing for imported workers and to keep people in poverty vs. owning their own home and having dominion over their lives.
Water and sewer bills make things more expensive per month, not less.
There is so much land in Vermont that would support many homes, we don’t allow it in the zoning. Just reviewed on this week.
We make it impossible, demanding sidewalks, expensive roads, extravagant storm water discharge in the country, it really doesn’t have to be complicated, some of the best neighborhoods in Vermont were built without storm water, without act 250 and everything 75 years later is still very good! They have made everything expensive, demanding insulation standards that don’t pay back is another example.
If we said no act 250 for any single-family homes under 1400 sq ft.
Any storm water paid by the state.
No restrictions on density.
No min or max size limit up to say 100.
Single family home by right
No need for sidewalks or lighting
Developer determines road construction
All towns must construct 24 homes under $250k in the next two year or experience a yearly tax of a million dollars until it’s done.
Suddenly we’d have homes. And fast, and people would have safety and assurance they could provide a safe spot to raise a family.
We are subverted by NGO”s, non-profits that are following Agenda 21, 2030, 2050, whereby we adopt soviet style housing, state owned and operated (AND GRIFTED), where we’ll never own and always be serfs to the state.
We are on the verge of the biggest scandal, the biggest population and societal change Vermont has yet to experience, eclipsing the rush from the Hippies in the 1970’s. The bureaucratic machine is pushing and driving this, and the rinos’ are right in there with them. We are insane with “free money” projects and this is the height of insider deals, being proposed.
We can do better, we have in the past, we need to dump Montpelier and their cabal.
So here is a link to how and why its so easy to grift, to money launder taxpayer money….this is rampant across our state. Affordable housing scam is big on this, so is education, so is Healthcare….pretty much our entire state is run this way. The most powerful people are the VNRC and VPIRG….the pretty much control all land use, lobbyists, hiding behind non-profit status, doing the Agenda 2050 shuffle.
https://x.com/atensnut/status/1894203452894413204/photo/1
It’s a good photo………planned parenthood operates the entire democratic party of Vermont this way, our state pays pp, then they put the money in the ppPAC, they then pay $3500 to every politician if they answer and do what they want them 100%.
Is anyone in the VTGOP talking about this? NO.
Why? They are doing this same thing.
Our governor gave them the money, so did everyone else in the VTGOP.
We need to stop being played for fools.
Thank you, Neil. You hit the nail squarely on the head with all your points and proposed solutions.
I invite anyone to drive around any Vermont small town or suburb where the sub-divisions were built from the mid-40s to late 70s. What you’ll find is acre after acre of 1200 sq ft homes with nice quarter to half acre lots. Those houses were affordable then and they will be very similarly affordable today priced at $200k – $250k.
And yet it seems that everything built new now is a McMansion. I get it – builders are forced into building those monstrosities in order to not be, essentially, building for free. There are plenty of us of that age where a 1200 sq ft ranch served just fine for us, our parents, and 3-4 siblings. What it comes down to is simply this: Do you want a nice, affordable, functional house? Or do you want to allow “The Machine” to continue beating you down as you try to pay those $2400 per month rents? Get involved! We’re finally winning. Fight, Fight, FIGHT!!
Yes, no doubt every layer of steps to climb or hoops to jump through enables more gubmint grifters with their fingers in the pie. Just one more reason why we need a DOGE-like system (VOGE?), not only for Vermont, but for every blue state in the nation. Then and only then will we get affordable single-family homes.
As always, the choice is ours.
Say goodbye to rural VT. Say goodbye to historic VT. Say goodbye to desirable VT. Say goodbye to safe VT. Say goodbye to tourism. Say goodbye to middle-income and wealthy people buying second homes and subsidizing so much in terms of schools/road maintenance, etc. in VT while using very little of it themselves.
Yup – Follow the next great bleeding-heart leftist scheme in forcing “diversity” instead in VT and in following the Obama/Biden PLAN to END Single Family Zoning!!!!!!!! It has been deemed: RACIST. What else?
Amazing……The business climate chronically complained about & “young people” are supposedly leaving in droves — but VT URGENTLY requires a PLETHORA of “workforce” i.e.: low-income homes for WHOM??????
Build it and they WILL come and HAVE come through all the other government social programs —- Enjoy your low-income “affordable” TRACT, HIGH DENSITY Government-built homes for ILLEGALS/The “UNHOUSED/and THE ADDICTED.
Keep enjoying buying into this next phase of “VT saves the world on YOUR dime!”
Laughable nonsense. This is WHY people are leaving. Keep it up!
The 36,000 housing units by 2029 is just a made-up number that developers pulled out of their hat for shoving down Vermont’s throat.