[{"_1":2,"_87":-5,"_88":-5},"loaderData",{"_3":4,"_26":27},"root",{"_5":6,"_17":10,"_18":19,"_20":21,"_22":10,"_23":-5,"_24":-5,"_25":10},"user",{"_7":8,"_9":10,"_11":10,"_12":-5,"_13":-5,"_14":15,"_16":-5},"roles",[],"isAuthenticated",false,"isPremium","planName","subscriptionStatus","featureFlags",{},"insightsBudget","isDevelopmentHost","userPreferences",{},"recaptchaSiteKey","6LcvOJcUAAAAAHsB-gPGfGktcRlKpH7OTIU_dMTD","isImpersonating","impersonation","affiliateStatus","isFreedomPortal","routes/v2/article/layout",{"_28":29,"_30":31},"notFound",true,"relatedArticles",[32,75],{"_33":34,"_35":36,"_37":38,"_39":40,"_41":42,"_43":44,"_45":46,"_47":48,"_49":50,"_51":52,"_53":54,"_55":56,"_57":58,"_59":60,"_61":62,"_63":64,"_65":66,"_67":68,"_69":70,"_71":72,"_73":56,"_74":56},"mediaId",6351695,"mediaKeyId","2228385-ddede76354548c352470b0cfbac15bad","parentId",2228385,"title","Developer says Middlebury master‑plan shows how regulation and QAP incentives drive Vermont affordable housing costs","audioSeconds",2821,"startMs",51000,"endMs",2872000,"viewUrl","/Search/View?dp=1&key=2228385-ddede76354548c352470b0cfbac15bad&start=51&end=2872","thumbnailUrl","https://assets.pipeline.soar.com/2228385-ddede76354548c352470b0cfbac15bad/thumbnail_51000.jpg","articleUrl","/articles/6351695/Vermont/Developer-says-Middlebury-masterplan-shows-how-regulation-and-QAP-incentives-drive-Vermont-affordable-housing-costs","mediaUrl","https://secure.pipeline.soar.com/6351695-69d2527fd711dd2e0c0bb339a8121f44/orig.mp4?Expires=1770927679&Signature=mWuO6JuGkFKmu32sg~GjVh8~rI8AgagxDrnrmBq9zV~w22xf1iPHQCPqUKIMX24tXSYQYFfNGAugikO-Ey4aclRrszdnvG5~5VeIVYB5K0ayuJEpnqVMVJZzFYUvUxZBZoHKc8fuGq7MJjaLZrEmzkjipdGs7meQutrBRBhK5ZUG1~fYGjRL~YPJtzROARxtOVM5ymsfkVTCQssP2IgDKjJgOGBHawwmzhg6sSrDtdwJZ6lUl-rMutUxzp5~8tFkgowI9VmIw93A~8DP00HLSclBpc2GsahabUZH9wueT1qwQzaZq0i4sB9kV73nqkIWdmLnjJae0R42IobvpxDZ9Q__&Key-Pair-Id=KUT5TJCACFTXG","author","","date","2025-02-05T14:02:50Z","article","Zeke Davison, chief executive officer of Summit Properties, told the Economic Development, Housing & General Affairs Committee on Feb. 5 that Summit’s recently broken‑ground 254‑unit master‑planned community in Middlebury assembled nearly every available funding source — ARPA infrastructure dollars, a Low Income Housing Tax Credit award, BHCB soft sources and other state supports — yet still faces very high development costs per unit.

Davison said the Middlebury project “is the true representation of every possible source of affordable housing,” and described how state and program rules — including how the Qualified Allocation Plan (QAP) awards tax credits and how Act 250 is applied — add time and cost. He told the committee the risk of appeals creates a chilling effect beyond calculable delay or dollars: “the risk of appeals is really what is the silencing, showing effects on those projects.”

Why it matters: Vermont’s deeply subsidized tax‑credit projects are expensive relative to neighboring states, and the state allocates a fixed, limited pool of tax credit equity. Davison argued that policy incentives inside the QAP and local land‑use processes together raise the total development cost (TDC) per unit and reduce the number of net new units built statewide.

Details from the presentation
- Funding and scope: The Middlebury development used American Rescue Plan Act infrastructure funding administered through ACCD, a Low Income Housing Tax Credit (LIHTC) award, and multiple state “soft” sources (community development block grant–type funds and other appropriations). Davison said the project was conceived as a partnership with Middlebury College and is intended as a replicable, master‑planned neighborhood.

- Cost comparisons: Davison presented multi‑state comparisons of tax‑credit project applications from Maine, New Hampshire and Vermont (2020–2024). He said Vermont’s TDC per unit for 9% LIHTC projects is about $500,000 to $534,000 per unit, while comparable projects in nearby states are lower. After adjusting for an estimated unavoidable Vermont premium (which PC Construction estimated at about 15% for hard costs because of labor and energy code effects), Vermont still shows materially higher costs driven by other choices.

- Soft costs and permitting: Davison flagged soft costs (legal, engineering, permitting, financing, insurance and pre‑development carrying costs) as a large driver. He said Vermont’s soft costs run roughly twice the share of comparable states and that appeals and permitting requirements contribute directly to soft‑cost escalation.

- QAP incentives and net new units: Davison said the QAP had, in prior years, awarded points for brownfield remediation, complicated infill or amenity‑heavy projects — policies that raise per‑unit cost without necessarily producing more net units. He said the Vermont Housing Finance Agency (VHFA) has responded to industry comments and is proposing changes in the new QAP to introduce competition on cost and reduce incentives that have driven up TDC.

- Perpetual affordability and recapitalization: Davison explained that “perpetually affordable” housing does not cost more at initial construction but typically requires recapitalization and major rehabilitation after 20–40 years. He said policy makers should understand the long‑term “tail” of maintenance and recapitalization for permanently restricted properties when choosing how to prioritize scarce public dollars.

- Middle‑income programs: Davison urged using scarce state dollars where they produce the most net new units. He described middle‑income homeownership and rental programs that require roughly $100,000–$150,000 of state subsidy per unit — far less than deeply subsidized 9% LIHTC projects — and argued that reallocating some scarce resources to these programs could yield more units faster.

Committee questions and examples
Committee members pressed on the relative roles of hard‑cost inflation (labor, materials, energy code) versus soft costs and program incentives. Davison and other participants agreed that some cost increases (labor and code) are largely unavoidable today, but that QAP incentives, permitting regimes and reserve requirements are areas the state can influence.

Davison also described two practical, recent effects: 1) a case in Orleans where a manufactured‑home cluster for ownership was derailed amid threats of an Act 250 appeal, and 2) Middlebury’s project, which used a college partnership and multiple subsidy sources to reach financial feasibility. He said those examples illustrated both the risks appeals create and the value of coordinated local partnerships.

What was not decided
No formal action or vote took place during the committee session. Davison’s presentation was intended to inform legislators and state housing agency staff about project economics and program choices; he urged lawmakers to emphasize net new unit production when they consider policy or appropriations.

Looking ahead
Davison said VHFA’s draft QAP moves toward increased competition on cost and that the legislature can frame appropriations and regulatory reforms with an explicit “net new units” standard. He recommended maximizing LIHTC efficiency while expanding lower‑cost middle‑income tools so scarce state dollars produce more homes statewide.","mediaType","Video","parentTitle","Senate Economic Development - 2025-02-05-9:00 AM","oneSentenceSummary","Zeke Davison, chief executive officer of Summit Properties, told the Economic Development, Housing & General Affairs Committee on Feb. 5 that Summit’s recently broken‑ground 254‑unit master‑planned community in Middlebury assembled nearly every available funding source — ARPA infrastructure dollars, a Low Income Housing Tax Credit award, BHCB soft sources and other state supports — yet still faces very high development costs per unit.","taxTitle","Economic Development, Housing & General Affairs, SENATE, Committees, Legislative , Vermont","taxId",37662,"location","Vermont","headline","shortSummary",{"_33":76,"_35":36,"_37":38,"_39":77,"_41":78,"_43":79,"_45":80,"_47":81,"_49":82,"_51":83,"_53":84,"_55":56,"_57":58,"_59":85,"_61":62,"_63":64,"_65":86,"_67":68,"_69":70,"_71":72,"_73":56,"_74":56},6351688,"Vermont Futures Project urges ‘abundance’ approach: plan sets housing, workforce targets and 7,200‑unit annual goal",2367,2997000,5364000,"/Search/View?dp=1&key=2228385-ddede76354548c352470b0cfbac15bad&start=2997&end=5364","https://assets.pipeline.soar.com/2228385-ddede76354548c352470b0cfbac15bad/thumbnail_2997000.jpg","/articles/6351688/Vermont/Vermont-Futures-Project-urges-abundance-approach-plan-sets-housing-workforce-targets-and-7200unit-annual-goal","https://secure.pipeline.soar.com/6351688-9036c10237e7c4f537d65471bddfc1eb/orig.mp4?Expires=1770927679&Signature=FrvS1TkhEt3vS4wdPME7QYKM38GEK~KKTzQhtRXaaHoDdSl7E6-Mc4SrO~GP0NimCZyBpZcFEu~IEl~ELUbwM8X3t25bYpaqIp5mW-2edU8cyg2LZzqk7wWwn~rJAgldOI29gcOwNUxHc9NEsEIuLuGgnyAZWDxUsXEiksCvZkz38leClqZOBrH9JotDHVV~ReKG406F~UsP9NshS0Sw~7vnEK~G39TklUy4HcNoSJaXKoS-OwmWXMG3uIrDHfr4yT-votKvWxL369gPrv4PNniJFf8V6Uj~ii7bm9E0v7Z-HwuxOv~eDXztnV32d6slKjiY2v1AP1Bd3zBHiamFNA__&Key-Pair-Id=KUT5TJCACFTXG","Kevin Chew, executive director of the Vermont Futures Project, presented an economic action plan to the Economic Development, Housing & General Affairs Committee on Feb. 5, describing demographic change, workforce shortfalls and a statewide housing gap that the plan says must be addressed together.

Chew said the plan organizes strategies around two pillars — “people” and “places” — and set long‑term targets informed by an analysis of retirements, labor force flows and housing supply. For the people framework Chew cited a working‑age population target of “802,000 by 2035” tied to a workforce gap analysis; for housing he highlighted a short‑term need of roughly 36,000 new primary homes over five years — about 7,200 homes per year — to meet replacement and demand pressures.

Why it matters: The presentation connects demographic trends (fewer 25‑to‑49‑year‑olds, more 65+ residents, and the nation’s lowest fertility rate) with a changed labor market: a decade ago Vermont had about two job seekers per job opening; today the ratio is about two openings per job seeker. Chew said that dynamic means Vermont must pursue both efficiency measures (raise labor‑force participation, align training to demand) and expansion (grow working‑age population through retention and in‑migration).

Key findings and recommendations
- Demographics and workforce: Chew said Vermont lost roughly 30,000 residents aged 25–49 in recent years while the 65+ cohort nearly doubled. He cited Vermont Department of Labor projections that estimate about 17,150 retirements per year through the early 2030s, which undergirds the plan’s long‑term population and workforce targets.

- Housing need: The plan incorporates the statewide housing needs assessment and estimates about 24,000–36,000 primary homes needed over five years; Chew emphasized the higher figure to account for post‑pandemic demand. He calculated that reaching the five‑year 36,000 figure requires permitting and building roughly 7,200 units annually; by comparison, current permitting averages about 2,500 units per year.

- Latent capacity and churn: The plan’s “latent capacity” analysis shows many towns have fewer residents than their historic peaks; restoring some of that capacity could add roughly 71,000 residents statewide. Chew said the problem is often mismatched housing types and low housing mobility — older residents in larger homes, limited options to downsize, and few market signals to return units to the active market.

- Places framework: Chew recommended pairing housing expansion with infrastructure and smart‑growth principles — water, wastewater, energy, broadband, and transportation — and stressed that clustered growth can lower vehicle miles traveled and greenhouse‑gas emissions when done near jobs and services.

- Strategy mix: The plan groups tactics as expansion (attracting and retaining working‑age people, supporting remote workers, targeted in‑migration) and efficiency (aligning education and training to employer demand, increasing labor‑force participation among under‑engaged cohorts). Chew recommended a regional approach that lets local communities set bite‑sized targets compatible with statewide goals.

Committee discussion and follow‑up
Committee members pressed Chew on regional variation — for example, Rutland County’s local conditions and 2,200 units currently offline — and on how to sequence transportation, economic development and housing actions. Chew said the plan is a starting point: the Futures Project will follow up with regional analysis and public engagement, sharing occupation‑level projections and county‑level housing breakdowns upon request.

No formal action was taken. Chew urged legislators to treat the plan as an agenda for coordinated policy — combining workforce development, housing investment and targeted infrastructure — rather than separate policy silos.","Kevin Chew, executive director of the Vermont Futures Project, presented a two‑year economic action plan that frames Vermont’s housing shortage and workforce gap as linked problems and recommends a mix of efficiency and expansion strategies, including a statewide housing target of roughly 36,000 homes over five years (≈7,200/year).","actionData","errors"]

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Developer says Middlebury master‑plan shows how regulation and QAP incentives drive Vermont affordable housing costs

Vermont Futures Project urges ‘abundance’ approach: plan sets housing, workforce targets and 7,200‑unit annual goal