by Don Keelan

VTDigger reported on August 30, “Vermont would need to build between 24,000 and 36,000 new housing units to meet estimated demand over the next five years, according to the latest Vermont Housing Needs Assessment.” The report originated with the Vermont Housing Financing Agency for the Department of Housing and Community Development.

The good news is that these numbers are now a wee bit lower. The Vermont media reported on Sept.5 that the Haystack Crossing project in Hinesburg received its ACT 250 permit to develop 139 housing units. Once Phase 2 of the project gets local and State approvals, about 100 or more will be created.

There is some bad news: the Hinesburg Development Review Board denied the conceptual sketch plan for the Haystack Crossing project on August 27, 2014. According to the Town website, the final DRB approval came on November 1, 2022, over eight years later. 

The most likely exhausted and frustrated developer, Blackrock Construction, LLC, of South Burlington, was still not in a position to begin construction; the project had to run the gauntlet of  ACT 250, and that had its beginning when an application was filed with the District Commission on Feb. 15^, 2023.

What an application it was, according to the Commission’s website. The listing of documents filed with the application went on for five plus pages, 19 line items per page, describing reports, maps, studies, photos, correspondence, memos, equipment specs, approval letters, and enclosed fees. Well over 100 documents.  All were filed for a Master plan, with 139 units in Phase I. I cannot imagine the number of computer gigs needed to file documents for the 23,800 to 35,800 units still to be developed.

The Commission issued a permit on August 27, 18 months after it received the application and exactly ten years from the date the project was presented to the Hinesburg DRB.  

By connecting the Hinesburg saga with the Administration’s housing needs assessment, a few takeaways should be noted: 

The housing development project took ten years to obtain approval (for Phase I only) and is still subject to appeal.

According to the Town’s planning director, the project will take ten years to develop.

Before passing title on the first unit, the developer must pay $500,000 in mitigation fees and complete substantial infrastructure work.

 Only a handful of Vermont real estate housing developers could contend with the cost, time, and technical/legal aspects of prosecuting the local/State approvals. Most developers just don’t have the staff or capital. 

  Since Haystack Crossing was first presented in 2014, the housing market has undergone a sea of change. Mortgage and construction loan interest rates have more than doubled, housing prices have increased nearly 40%, the cost of building materials has spiked dramatically, and the building labor force has shrunk significantly. The latter was reported in VBM’s September issue; the State needed over 3,000 construction personnel. So, what can be done to meet the demand?

  All local and State approvals should be ruled to be accomplished within 60 days after a developer has applied. If not, the development is assumed to be approved to begin.

  Localities should create pre-approved sites ready to be built upon with all wetlands, traffic, density, abutters, zoning, storm drainage, and wastewater/portable water issues resolved. This will attract developers who are considering acquiring such sites without waiting ten years for approval.

  Towns should pass zoning laws to provide for two or three-story, multi-family attached housing units in village settings.  

  If a town’s DRB and planning commission are staffed with professionals, there should be no need to repeat the review process through ACT 250.

  Repurpose Efficiency Vermont’s $100 million annual revenue and pass it on to municipalities to prepare sites within their towns for development. 

 The state and the Associated General Contractors of Vermont will create and/or expand apprentice schools in four regions of the State. The schools will be specific: train carpenters, electricians, plumbers, heavy equipment operators, HVAC, welders, concrete, roofers, and plan reviewers. 

Real estate housing developers rarely have a seat at the table when housing is discussed. With the state-wide demand for housing, you have to wonder why developers are not flocking to Vermont. One reason can be found in Hinesburg: 10 years for approvals.

The author is a U.S. Marine (retired), CPA, and columnist living in Arlington, VT.