Middlebury breaks ground on Vermont's largest new neighborhood development project

Vermont's Senate Economic Development Committee made significant strides in addressing the state's housing crisis during their meeting on February 5, 2025. A key highlight was the announcement of a groundbreaking for a 254-unit master-planned community in Middlebury, marking the largest new neighborhood development project outside Chittenden County in years. This initiative, a collaboration with Middlebury College, has been bolstered by substantial funding from the American Rescue Plan Act (ARPA) and various housing tax credits, showcasing a comprehensive approach to affordable housing.

Committee members discussed the critical need to reduce regulatory barriers that hinder housing development. They emphasized that even minor changes in language within regulations can lead to significant delays, sometimes extending projects by months. The conversation highlighted the duplicative nature of existing processes, particularly under Act 250, which complicates the development of affordable housing. The committee acknowledged that while environmental reviews are necessary, the overlapping requirements can create unnecessary obstacles for developers.

The meeting also underscored the chilling effect of potential appeals on housing projects. Developers expressed concerns that the risk of legal challenges can deter investment and slow down progress, exacerbating the state's housing shortage. The committee recognized that the current system disproportionately affects smaller developers, limiting the pool of those willing to take on projects.

In addition to the Middlebury project, the committee discussed the importance of evaluating and streamlining processes to foster a more conducive environment for housing development. They noted that while progress has been made, there is still a long way to go in addressing the barriers that prevent the construction of much-needed homes.

As Vermont continues to grapple with rising vacancy rates and homelessness, the outcomes of this meeting signal a proactive approach to tackling the housing crisis. The committee's commitment to reforming regulatory frameworks and enhancing collaboration among stakeholders is expected to pave the way for more affordable housing opportunities in the state.