Vermont establishes voluntary buyout program for flood-prone properties

On March 26, 2025, the Vermont State Legislature introduced House Bill 493, a significant legislative proposal aimed at addressing the challenges posed by flood-prone properties in the state. The bill establishes a Voluntary Buyout Program, which allows municipalities to purchase flood-prone properties at fair market value, with the intention of converting these areas into open space. This initiative seeks to mitigate the risks associated with flooding, a growing concern in light of climate change and increasing severe weather events.

The key provision of the bill mandates that once a municipality acquires a flood-prone property, it must maintain the land as open space, enforced through a deed restriction or covenant that prohibits any future development. This approach not only aims to protect residents from the dangers of flooding but also contributes to environmental conservation by preserving natural landscapes.

The introduction of House Bill 493 has sparked notable discussions among lawmakers and community stakeholders. Proponents argue that the program is a proactive measure to enhance public safety and reduce the financial burden on communities that frequently deal with flood damage. They emphasize the importance of creating resilient infrastructure and sustainable land use practices in the face of climate change.

However, the bill has faced some opposition. Critics express concerns about the financial implications for municipalities, particularly regarding the funding mechanisms for the buyouts and the long-term maintenance of the acquired properties. There are also questions about the potential impact on local tax revenues, as properties removed from the tax rolls could strain municipal budgets.

In addition to the Voluntary Buyout Program, House Bill 493 includes provisions related to payments in lieu of taxes for correctional facilities and authorizes the Attorney General's Office to retain a portion of recoveries from Medicaid fraud settlements to support its activities. These elements, while less controversial, add complexity to the bill and highlight the legislature's broader focus on fiscal responsibility and accountability.

The implications of House Bill 493 extend beyond immediate flood management. By prioritizing the acquisition of flood-prone properties, Vermont is taking a significant step towards climate adaptation and resilience. Experts suggest that if implemented effectively, the program could serve as a model for other states grappling with similar environmental challenges.

As the legislative process unfolds, stakeholders will be closely monitoring the bill's progress, particularly any amendments that may address financial concerns or enhance community engagement in the buyout process. The outcome of House Bill 493 could set a precedent for how states manage flood risks and prioritize public safety in the face of climate change.