Lawmakers hear Act 163 update as recovery residences expand; debate continues over landlord-tenant exemption

At a House Oversight and Accountability Committee meeting, state health officials, recovery housing operators and lawmakers reviewed progress implementing Act 163 and discussed whether recovery residences should remain exempt from landlord-tenant rules or seek a healthcare licensure route.

Representative Eric McGuire, who said he was onboarded this spring with Brock Community Action as shelter director at Philo of Rutland, told the committee Brock is building an adult shelter in Rutland and planning a temporary supportive family unit if the Rutland Housing Trust obtains site control of the former Loretto nursing home. "The hope is that we have the adult shelter operational late fall," McGuire said, adding contractor Miller and Breen expect to begin work in June.

The update then turned to certified recovery residences created under Act 163. Jeff (last name not provided), a recovery housing stakeholder who discussed statewide coordination through Recovery Partners of Vermont, told the committee that funding tied to the FY25 budget has helped expand capacity. "Through Recovery Partners of Vermont, we've added 40 beds to the system since last year with your funding," he said, and cited findings from The Fletcher Group's study estimating an $8.83 return on investment for every dollar spent across all certified residences.

Candace Gale, director of community relations for Vermont Foundation of Recovery, gave data from certified homes and described operations and outcomes. "These homes brought an additional 40 beds online since 07/01/2024," she said. Gale said certified residences served 226 individuals last year, with an average length of stay of six months; 63% (about 142 people) gained meaningful employment during their stay; and of 143 members who exited in 2024, at least 70 transitioned to a stable living situation. She cautioned that exit data are likely underreported because prior to Act 163 there was no standard method for tracking post-exit destinations.

Gale also described removals and safety-net practices: "Between July–December 2024, there were 40 temporary or permanent removals from certified recovery residences across the state. Of these, 27 were related to relapse, and 13 involved threatening or violent behavior." She added that 19 people statewide accessed safety-net supports after removal during that period, and operators keep discharge pathways open and connected to services.

Operators told the committee that recovery residences differ from standard rentals and need tools to enforce house rules without triggering the eviction process. Dawn Tetreault, a founder of Jenna's Promise and managing partner of a newly certified residential program in Derby, described operational practices: "Everyone that comes in has a relapse plan. We check it. We make sure they have someone to call if they need," and noted the use of embedded relapse beds, stabilization beds at recovery centers, and short hotel placements to stabilize people until they can return and be re-tested.

Kelly Dougherty, deputy commissioner at the Department of Health, recommended retaining the Vermont Alliance for Recovery Residences (VITAR) as the certifying body and asked the legislature to give the department statutory authority to select a certifying body and to adopt rulemaking authority for regulations tailored to Vermont. "We request or recommend that the legislature give the department statutory authority to select the certifying body for recovery residences," Dougherty said, adding that NARR standards should form the core of any Vermont rules with state-specific additions.

Committee members discussed policy options ahead of the current landlord-tenant exemption's sunset, including letting the exemption lapse, extending it permanently, or pursuing licensure as therapeutic community residences (TCRs) under the Department of Disabilities, Aging, and Independent Living to treat some homes as healthcare programs rather than rental housing. As one lawmaker put it, TCR licensure would remove homes from landlord-tenant law but carries other licensing requirements and potential Medicaid implications.

No formal legislative action was taken during the meeting. Committee members and witnesses agreed to continue collecting exit and operational data over the summer and to revisit statutory changes next session. Senator outreach on companion legislation was noted as ongoing.

The committee scheduled follow-up work and a future report review to inform next year's potential legislation.