Public Investment into Smart Growth Strategies

Both VHCB funds and tax credits helped finish the renovation and restoration of Chandler Music Hall in Randolph. Photo credit Robert Eddy

Two economic development public investment strategies that are key to our state's future are the Housing and Conservation Board (VHCB) and the Vermont Downtown and Village Center redevelopment incentives.

Vermont Housing and Conservation Board
The House is working to pass a proposed state budget to the Senate. The Governor recommended a creative funding strategy for VHCB totaling $12.6M, which is the investment amount warranted under the property transfer tax statutory formula. The House budget would reduce that level by about 5 percent.   

The action on this item now moves to the Senate Appropriations and Senate Institutions Committee.

Downtown and Village Center Incentives
The Vermont Downtown and Village Center redevelopment incentives help property owners improve older buildings in their downtowns and village centers. The Downtown Board is authorized to award $1.7 million worth of credits to property owners next year under an existing state statute. Smart Growth Vermont and the Preservation Trust of Vermont are the program’s main and top boosters. In February, the Commissioner of Economic Development, Housing and Community Affairs proposed the Legislature enact two important reforms to this program. These reforms were included in the House tax bill, which passed the House this week. One change will allow property owners to claim tax incentives for phases of projects, instead of being forced to do all the work in one fell swoop. The other change allows the Downtown Board to redirect tax incentive capacity to a new redevelopment if an awarded project dies with unused tax credit capacity.

The action on this item moves to the Senate Finance Committee.

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Vermont Neighborhoods Law Expansion

Winooski's downtown is a designated Vermont Neighborhood.

In February, the Commissioner of Economic Development, Housing and Community Affairs proposed the House include a provision in the jobs bill expanding the Vermont Neighborhoods law to allow housing developers to more easily utilize the streamlined regulations offered by the program. The Vermont Neighborhoods law that passed a few years ago offers communities the chance to designate smart growth areas for new housing development. Act 250 is waived in those designated areas, subject to affordability and density requirements. Right now, only a municipality can nominate an area for this designation. Under the Shumlin Administration's proposal, a developer would be able to nominate an area for the designation. The Commissioner negotiated a compromise with interested stakeholders and it was included in the House passed jobs bill.  

The action on this item now moves to the Senate Economic Development Committee chaired by Senator Vince Illuzzi.

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Complete Streets Legislation Proposed

In partnership with AARP Vermont, we are advocating for a new bill that proposes to modify Vermont’s transportation policy to require that the needs of all users of Vermont’s transportation system—including motorists, bicyclists, public transportation users, and pedestrians of all ages and abilities—be considered and accommodated in state and locally managed transportation projects. H.198 has strong statewide and multi-partisan sponsorship. Secretary of Transportation Brian Searles recently announced his Agency supports the bill, which is a change of policy for the Agency that should help the bill gain momentum in the Legislature. The Vermont League of Cities and Towns is likely to support a compromise version of the bill now, too, which is important.  

The action on this item is still in the House Transportation Committee. We are urging them to act on the bill soon.

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