Winooski staff report progress and delays on housing priorities; inclusionary zoning, ADU workshops and short-term rental licensing advance

City staff presented the Winooski City Council with a multifaceted update on housing priorities on May 19, reporting progress on a community housing needs assessment, plans for accessory dwelling unit workshops, and the first-year compliance results under the city’s short-term rental ordinance, while noting delays on a proposed public building registry and some plan-review items.

Jasmine (city staff) summarized five policy priorities tracked under the city’s housing strategic goals. She said work on a public building registry has proceeded more slowly because of code-team staffing limits and that one plan-review item has “started, but not proceeding well.” For inclusionary zoning, Jasmine said the planning commission had been working with the housing commission and Chittenden County Regional Planning Commission; the commission planned a May 22 meeting to finish a side-by-side review and, if approved there, the draft could come to council in July.

Jasmine described the equitable housing needs assessment the city contracted with the University of Vermont Center for Rural Studies. Phase 1, a literature review and compiled census datasets, is complete; phase 2 will design community engagement, collect new data and assess policy options. Staff told the council they expect the project to extend into 2026 to allow time for focus groups, interviews and a full report.

On short-term rentals, staff said the first year of the licensing program has high compliance: the city had received 64 applications to date, eight had been withdrawn and 46 licenses issued. As required by ordinance, 80% of STR licensing fees are allocated to the housing trust fund and 20% to code enforcement; staff estimated code’s share this cycle at about $13,000. Staff and councilors noted that several owner-occupants withdrew rather than subject their homes to inspection; council members asked staff to monitor whether owner-occupied units are leaving the short-term market.

The housing update covered additional programs and projects: the Armory redevelopment (the National Guard has demolished the building and completed site remediation; one proposal from Champlain Housing Trust had been received by the city), work to improve housing trust fund programming (with an anticipated shift toward down-payment assistance), and staff negotiations with Champlain Housing Trust to administer Winooski’s home repair (HIP) funds. Staff also reported ongoing discussions with EastRise Credit Union to connect Winooski borrowers to the city’s down-payment assistance and interest-rate buy-down programs.

Airport noise mitigation outreach remains phased: 52 homes were identified for the program in 2024, 13 are in final stages or completed, seven under construction and 32 pending; so far, completed installations are in South Burlington, and city leaders continue to press the airport and FAA for more outreach focused on Winooski. The city’s noise exposure map was accepted by the FAA and publicly posted, staff said.

Staff described a $1,000 CVOEO grant to support an accessory dwelling unit (ADU) workshop series for property owners; the series will include technical assistance and a panel of local ADU builders and lenders, and will conclude by Aug. 1. Jasmine said the landlord survey captured roughly 72% of publicly reported units and that rent data are self-reported and skew toward lower turnover units.

Councilors asked for follow-up information on questions including the short-term rental 14-day rolling threshold (staff said it derives from federal tax guidance used as a practical definition), the planning commission’s timing on inclusionary zoning, and how ADU sessions could be scheduled to maximize public participation.

No council votes were taken on major housing reforms at the meeting; staff said they will return with drafts, recommendations and a June housing commission recommendation on a possible cap for short-term rentals.