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1 H.719
2 Introduced by Representatives Bartley of Fairfax, Hango of Berkshire, Sims of
3 Craftsbury, Small of Winooski, Andrews of Westford, Anthony
4 of Barre City, Arrison of Weathersfield, Beck of St. Johnsbury,
5 Bos-Lun of Westminster, Branagan of Georgia, Buss of
6 Woodstock, Campbell of St. Johnsbury, Canfield of Fair Haven,
7 Carpenter of Hyde Park, Clifford of Rutland City, Elder of
8 Starksboro, Farlice-Rubio of Barnet, Goslant of Northfield,
9 Harrison of Chittenden, Krasnow of South Burlington,
10 LaBounty of Lyndon, Leavitt of Grand Isle, Logan of
11 Burlington, Mattos of Milton, McCoy of Poultney, Morris of
12 Springfield, Noyes of Wolcott, Oliver of Sheldon, Pajala of
13 Londonderry, Patt of Worcester, Priestley of Bradford,
14 Surprenant of Barnard, Templeman of Brownington, Toof of St.
15 Albans Town, and Walker of Swanton
16 Referred to Committee on
17 Date:
18 Subject: Conservation and development; housing; land use; Act 250;
19 municipal zoning; property taxes VT LEG #372767 v.5
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1 Statement of purpose of bill as introduced: This bill proposes to make multiple
2 changes to the State land use law, known as Act 250; municipal zoning laws;
3 tax laws; and housing programs.
4 An act relating to housing development and unit rehabilitation
5 It is hereby enacted by the General Assembly of the State of Vermont:
6 * * * Act 250 * * *
7 Sec. 1. INTENT
8 It is the intent of the General Assembly to create more housing units within
9 the State. Fundamentally, the most effective way to address homelessness in
10 the long-term is to generate more housing units. In addition to unit creation,
11 this act intends to remove barriers to improving and expanding the existing
12 shelter system, where those in housing transition can receive shelter and
13 services, reducing reliance on less effective and more costly hotel housing.
14 This act also seeks to enable hotels, hospitals, dormitories, and other suitable
15 building conversions to shelters and to temporary and permanently affordable
16 housing, as well as other forms of supportive housing connected with the
17 services Vermonters need on their path to housing permanency. The
18 overarching and primary objective of this act is to create more housing units
19 and to reinvest in neglected neighborhoods.
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1 Sec. 2. 10 V.S.A. § 6001 is amended to read:
2 § 6001. DEFINITIONS
3 As used in this chapter:
4 ***
5 (3)(A) “Development” means each of the following:
6 ***
7 (iv)(I) The construction of housing projects such as cooperatives,
8 condominiums, or dwellings, or construction or maintenance of mobile homes
9 or mobile home parks, with 10 30 or more units, constructed or maintained on
10 a tract or tracts of land not located within a designated center, but in a
11 municipality that may be feasibly served by water and sewer infrastructure,
12 owned or controlled by a person, within a radius of five miles of any point on
13 any involved land and within any continuous period of five two years.
14 However:
15 (I) A priority housing project shall constitute a development
16 under this subdivision (iv) only if the number of housing units in the project is:
17 (aa) [Repealed.]
18 (bb) [Repealed.]
19 (cc) 75 or more, in a municipality with a population of 6,000
20 or more but less than 10,000.
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1 (dd) 50 or more, in a municipality with a population of less
2 than 6,000.
3 (ee) [Repealed.]
4 (ff) Notwithstanding subdivisions (cc) through (ee) of this
5 subdivision (3)(A)(iv)(I), 10 or more if the construction involves the
6 demolition of one or more buildings that are listed on or eligible to be listed on
7 the State or National Register of Historic Places. However, demolition shall
8 not be considered to create jurisdiction under this subdivision (ff) if the
9 Division for Historic Preservation has determined that the proposed demolition
10 will have no adverse effect, will have no adverse effect if specified conditions
11 are met, or will have an adverse effect that will be adequately mitigated. Any
12 imposed conditions shall be enforceable through a grant condition, deed
13 covenant, or other legally binding document.
14 (II) The determination of jurisdiction over a priority housing
15 project shall count only the housing units included in that discrete project. The
16 construction of housing projects such as cooperatives, condominiums, or
17 dwellings, or construction or maintenance of mobile homes or mobile home
18 parks, with 10 or more units, constructed or maintained on a tract or tracts of
19 land owned or controlled by a person, within a radius of five miles of any point
20 on any involved land and within any continuous period of two years.
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1 (III) Housing units in a priority housing project shall not count
2 toward determining jurisdiction over any other project.
3 ***
4 (D) The word “development” does not include:
5 ***
6 (iii) The construction of housing projects such as cooperatives,
7 condominiums, or dwellings, or construction or maintenance of mobile homes
8 or mobile home parks, constructed or maintained on a tract or tracts of land,
9 owned or controlled by a person, within a designated center and within a radius
10 of one-half mile of the boundary of a designated center.
11 ***
12 (ix) Hotels and motels converted to permanently affordable
13 housing developments as defined in 24 V.S.A. § 4303(2).
14 ***
15 (35) “Priority housing project” means a discrete project located on a
16 single tract or multiple contiguous tracts of land that consists exclusively of
17 mixed income housing or mixed use, or any combination thereof, and is
18 located entirely within a designated downtown development district,
19 designated new town center, designated growth center, or designated
20 neighborhood development area under 24 V.S.A. chapter 76A. [Repealed.]
21 ***
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1 Sec. 3. 10 V.S.A. § 6086(h) is added to read:
2 (h) A District Commission may issue a permit contingent upon the
3 applicant receiving permits from the Agency of Natural Resources or other
4 State agency.
5 Sec. 4. REPEALS
6 (a) 10 V.S.A. § 6081(o) and (p) are repealed.
7 (b) 30 V.S.A. § 55 (priority housing projects; stretch code) is repealed.
8 (c) 2023 Acts and Resolves No. 47, Sec. 16 (10 V.S.A. § 6001) is repealed.
9 Sec. 5. 10 V.S.A. § 6032 is added to read:
10 § 6032. DELEGATION OF REVIEW AUTHORITY TO MUNICIPALITIES
11 (a) Notwithstanding any other provision of this chapter to the contrary, the
12 Natural Resources Board shall establish a process by which a municipality is
13 delegated authority to review development and subdivisions in lieu of the
14 process established under the rest of this chapter.
15 (b) In any municipality that has been delegated authority under this section,
16 any development or subdivision shall be exempt from needing a permit or
17 permit amendment from the District Commission.
18 (c) Delegation of review authority under this section shall require a
19 municipality to have adopted high-quality zoning bylaws that are functionally
20 equivalent to the criteria established in subsection 6086(a) of this title. The VT LEG #372767 v.5
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1 Board shall review a municipality’s bylaws for conformance with this standard
2 and any other requirements it establishes.
3 (d) On or before July 1, 2025, the Natural Resources Board, in consultation
4 with the regional planning commissions and the Agency of Commerce and
5 Community Development, shall issue guidance establishing the requirements
6 for municipalities seeking delegation under this section.
7 Sec. 6. 10 V.S.A. § 6093 is amended to read:
8 § 6093. MITIGATION OF PRIMARY AGRICULTURAL SOILS
9 (a) Mitigation for loss of primary agricultural soils. Suitable mitigation for
10 the conversion of primary agricultural soils necessary to satisfy subdivision
11 6086(a)(9)(B)(iv) of this title shall depend on where the project tract is located.
12 (1) Project located in certain designated areas. This subdivision applies
13 to projects located in the following areas designated under 24 V.S.A. chapter
14 76A: a downtown development district, a growth center, a new town center
15 designated on or before January 1, 2014, and a neighborhood development area
16 associated with a designated downtown development district. If the project
17 tract is located in one of these designated areas, an applicant who complies
18 with subdivision 6086(a)(9)(B)(iv) of this title shall deposit an offsite
19 mitigation fee into the Vermont Housing and Conservation Trust Fund
20 established under section 312 of this title for the purpose of preserving primary
21 agricultural soils of equal or greater value with the highest priority given to
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1 preserving prime agricultural soils as defined by the U.S. Department of
2 Agriculture. Any required offsite mitigation fee shall be derived by:
3 (A) Determining the number of acres of primary agricultural soils
4 affected by the proposed development or subdivision.
5 (B) Multiplying the number of affected acres of primary agricultural
6 soils by a factor resulting in a ratio established as follows:
7 (i) For development or subdivision within a designated area
8 described in this subdivision (a)(1), the ratio shall be 1:1.
9 (ii) For residential construction that has a density of at least eight
10 units of housing per acre, of which at least eight units per acre or at least
11 40 percent of the units, on average, in the entire development or subdivision,
12 whichever is greater, meets the definition of affordable housing established in
13 this chapter, no mitigation shall be required, regardless of location in or outside
14 a designated area described in this subdivision (a)(1). However, all affordable
15 housing units shall be subject to housing subsidy covenants, as defined in
16 27 V.S.A. § 610, that preserve their affordability for a period of 99 years or
17 longer. As used in this section, housing that is rented shall be considered
18 affordable housing when its inhabitants have a gross annual household income
19 that does not exceed 60 percent of the county median income or 60 percent of
20 the standard metropolitan statistical area income if the municipality is located
21 in such an area.
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1 (iii) For an alternative or community wastewater system that will
2 serve development within a designated area, no mitigation shall be required.
3 ***
4 * * * Municipal Zoning * * *
5 Sec. 7. 24 V.S.A. § 4465 is amended to read:
6 § 4465. APPEALS OF DECISIONS OF THE ADMINISTRATIVE OFFICER
7 ***
8 (b) As used in this chapter, an “ interested person” means any one of the
9 following:
10 ***
11 (4) Any 10 persons equal to a minimum of 10 percent of the most recent
12 U.S. Census Bureau population estimate of the municipality who may be any
13 combination of voters, residents, or real property owners within a municipality
14 listed in subdivision (2) of this subsection who, by signed petition to the
15 appropriate municipal panel of a municipality, the plan or a bylaw of which is
16 at issue in any appeal brought under this title, allege that any relief requested
17 by a person under this title, if granted, will not be in accord with the policies,
18 purposes, or terms of the plan or bylaw of that municipality. This petition to
19 the appropriate municipal panel must designate one person to serve as the
20 representative of the petitioners regarding all matters related to the appeal. For
21 purposes of this subdivision, an appeal shall not include the character of the VT LEG #372767 v.5
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1 area affected if the project has a residential component that includes affordable
2 housing.
3 ***
4 (d) For the purposes of this section, an appeal shall not include the
5 following:
6 (1) Any residential and mixed-use development containing up to 25
7 dwelling units within areas served by municipal sewer and water infrastructure.
8 (2) Any permitted residential and mixed-use development that does not
9 require conditional use review. Development requiring conditional use review
10 may be appealed.
11 (3) Any housing or mixed-use development located within a designated
12 center in a zoning district that allows residential development.
13 Sec. 8. 10 V.S.A. § 8507 is added to read:
14 § 8507. APPEAL; BOND
15 (a) If an aggrieved person elects to appeal the judgment of the appropriate
16 municipal panel on an application for a housing project to the court under this
17 chapter, the court shall require that person give security by posting a bond to
18 the State, in a sufficient sum, as the court directs, to compensate the permit
19 applicant for:
20 (1) At least half of reasonable associated costs incurred by the permit
21 applicant as a direct result of the appeal if the appeal is denied but found to be VT LEG #372767 v.5
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1 nonfrivolous. As used in this subdivision, a “frivolous appeal” means an
2 appeal that would not have a reasonable chance of success, such as an appeal
3 that is unsupported.
4 (2) All reasonable associated costs incurred by the permit applicant as a
5 direct result of the appeal as well as additional injury if the appeal is denied
6 and found to be frivolous,
7 or returned to the appealing party if the appeal is successful.
8 (b) A motion to waive the appeal bond will be allowed if the party is
9 indigent and has nonfrivolous grounds for appeal.
10 (c) As used in this section, “denied” means that the court’s decision
11 affirmed the appropriate municipal panel’s decision.
12 Sec. 9. 24 V.S.A. § 4464 is amended to read:
13 § 4464. HEARING AND NOTICE REQUIREMENTS; DECISIONS AND
14 CONDITIONS; ADMINISTRATIVE REVIEW; ROLE OF
15 ADVISORY COMMISSIONS IN DEVELOPMENT REVIEW
16 ***
17 (b) Decisions.
18 (1) The appropriate municipal panel may recess the proceedings on any
19 application pending submission of additional information. The panel should
20 close the evidence promptly after all parties have submitted the requested
21 information. The panel shall adjourn the hearing and issue a decision within VT LEG #372767 v.5
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1 45 60 days after the adjournment of the hearing application was submitted, and
2 failure of the panel to issue a decision within this period shall be deemed
3 approval an