Bill H.602, introduced by Representatives McCoy and Bartley, seeks to amend Vermont's land use and development laws to promote residential housing construction. The bill repeals certain road construction regulations that previously defined development, simplifying the housing project approval process. It extends interim exemptions for priority housing projects and accessory dwelling units until July 1, 2030, allowing construction without permits in designated areas. Additionally, the bill streamlines the approval process for developments with fewer than 75 units in specific zones and mandates that municipal plans include analyses of housing needs and constraints, ensuring municipalities address barriers to housing development.

The legislation also introduces a framework for "by-right" housing designs, allowing municipalities to accept state-approved designs without discretionary review, thereby facilitating the construction of single-family and multi-unit dwellings. It increases the annual cap on tax credits awarded by the State Board from $3,000,000 to $5,000,000 and authorizes $250,000 in five-year tax credits for an additional 26 years to support the Down Payment Assistance Program. Furthermore, the bill allocates $6,000,000 for a pilot project to explore cost-reduction strategies in housing development and establishes two new positions within the Department of Housing and Community Development, with a total annual appropriation of $300,000 for salaries and $6,000,000 for program funding. An additional $250,000 is appropriated to enhance municipal planning grants, and the act is set to take effect on July 1, 2026.

Statutes affected:
As Introduced: 10-6001(3)(A), 10-6001, 10-6001(3), 10-3)(D), 10-3, 10-6081, 10-6033, 10-6034, 10-6081(z), 24-4460(g), 24-4460, 24-4412(1)(D), 24-4412, 24-4412(1), 24-4413, 32-5930ee