Housing (Land Use)

This bill changes how Vermont calculates the land use change tax when agricultural or forest land is partially developed. Instead of valuing the changed portion as a separate parcel, it requires a proportional calculation based on acreage. It also creates a new tax exemption for land withdrawn specifically to build affordable housing, provided the land fronts a public road, is within three miles of a downtown area, and doesn’t fragment existing parcels. This directly affects developers building affordable housing projects meeting these criteria by eliminating the tax on qualifying land conversions. The changes apply to land no longer eligible for agricultural/forest land valuation under current rules.

This bill modifies Vermont's land use regulations to encourage housing development, primarily affecting developers and municipalities. Key provisions include creating an exemption for "priority housing projects" (mixed-income housing in designated downtowns, growth centers, or neighborhoods with required infrastructure) and defining "mixed use" development requiring at least 40% residential space. It also revises rules for road construction to prevent fragmentation of natural resource areas while allowing clustered housing designs. These changes aim to streamline approvals for housing in specific zones without altering broader conservation protections.

This bill requires Vermont's Secretary of Natural Resources to update stormwater management rules to align with recent state land use changes that support higher-density development in walkable neighborhoods. It mandates incorporating existing EPA-approved stormwater management standards - such as off-site treatment and alternatives for high-density areas - into the state's permitting system. The policy directly affects developers and municipalities seeking to build denser housing in designated high-density zones. The changes aim to streamline permitting for projects that meet updated environmental standards without requiring new infrastructure.