H.687 “makes it easier to develop housing” but imposes detailed requirements and guidelines on municipalities

By Guy Page

Two days after Senate Pro Tem Phil Baruth spoke bluntly about circling the wagons against recalcitrant Republicans and unhelpful media, House Speaker Jill Krowinski invited the press into her office for her own version of a post-Town Meeting update.

Her main topic: housing.

“First, I want Vermonters to know, and I’ve said this from day one that creating more affordable housing is a top priority for us,” Krowinski said. She mentioned a 10-year plan bill and a flood recovery bill. 

Then she dwelt on H.687, the ‘Act 250 modernization bill.’ She stated:

“Our Act 250 modernization bill makes it easier to develop housing while conserving our Vermont landscape. The Governor has stated that the bill focuses too much on conservation, but let me be absolutely clear – this bill is pro environment and pro business.”

VDC asked the Speaker how H.687 makes it easier to develop housing. She answered (see video) that “it’s giving towns more authority and more ability to be in the conversation about how they grow, where they grow housing.”

Asked how, specifically, it would give towns more authority, she mentioned allowing growth were sewer capacity exists and then begged off, saying it’s still in committee. “I’m happy to get back to you on that,” she said. 

Thursday morning, her staff got back to VDC the latest draft, which has doubled from 59 pages as introduced to 128 pages. Mary Shelly wrote Frankenstein. Rep. Amy Sheldon wrote H.687. They’re both long reads, but the bill is more challenging in its exceedingly heavy detail on bureaucratic procedures to appoint, staff and operate state boards to oversee Act 250 cases. 

Then, when the reader gets to the good parts – actual action to promote housing construction – the draft appears to restrict housing.

Forests or ‘habitat.’ “A permit will not be granted for a development or subdivision within or partially within a forest block or habitat connector unless the applicant demonstrates that a project will not result in an undue adverse impact on the forest block or habitat connector.”

More natural resource regs coming –  The bill identifies a “Tier 3” designation as an area consisting of “critical natural resources which may include river corridors, headwaters streams, habitat connectors of Statewide significance.” A state environmental board by 2026 will establish new regulations for these areas, acting on recommendations formed by a working group of stakeholders, including environmental, municipal, planning, and business groups. 

Act 250 review not required for some urban development – the bill establishes a Tier1A, where urban housing development would’t need Act 250 review provided the municipality has a municipal planning, municipal flood hazard planning, exemption-free zoning, a capital budget consistent with ‘smart growth’ principles, Urban form bylaws that further smart growth principles that adequately regulate the physical form and scale of development, historic preservation bylaws, adequate municipal staff, an applicable regional plan…… etc.

This section delivers page upon page of specific requirements for municipalities to follow. 

And finally, municipalities cannot apply for Tier 1A status until 2027 – presumably to give both state and local government time to build their capacity to administer/follow the rigorous local guidelines. 

H687 discourages the single-family home located in the country – an anti-sprawl measure observed in the breach by many Vermont lawmakers, including some of the key legislators writing new housing regulations. Specifically, it tells regulators to focus on downtown and urban areas, and to build multi-family housing on lots formerly used for single-family homes. 

H687, the housing bill promoted by Krowinski and Sheldon, is on a collision course with a more development-friendly housing bill in the Senate. The final half of the legislative session will see some sort of Grand Bargain struck – or else, once again, no progress of any kind on making Act 250 more welcoming of housing construction.