Land Access and Opportunity Board asks for $5.6 million from cannabis excise tax to expand housing programs

The Land Access and Opportunity Board (LAOB) told the House Appropriations Committee on Feb. 14 that it is seeking a 25% allocation of Vermont’s cannabis excise tax—approximately $5.6 million—to expand programs that help Vermonters who have been historically marginalized secure land and housing.

The request would fund direct-service programs the board says would increase access to homeownership and support community-led development. The LAOB’s leadership described the proposal as the product of the Cannabis Control Board’s Act 166 study group and stressed the board’s focus on non-duplicative, capacity-building programs.

"The LAOB was first established in 2022 as an independent state board to address disparities in land and homeownership for Vermonters who have been marginalized from land and homeownership," said Cornelia Martha Fieroa, co-director of the Land Access and Opportunity Board. "When those who are most marginalized do better, then we all do better."

Why it matters: The LAOB told appropriators its FY26 plan would direct new funds to down-payment assistance, capital for emerging developers, and pilot programs such as a Secure Housing Coaches program that positions five full-time coaches statewide to provide hands-on navigation for prospective homeowners. Committee members pressed for clarity about the proposal’s effect on the general fund and on existing allocations of the cannabis excise tax.

The LAOB said the $5.6 million figure represents a 25% fixed allocation of the cannabis excise tax under the community reinvestment model recommended by the Cannabis Control Board. "This recommendation comes from the Cannabis Control Board’s Act 166 study," said Jean Hamilton, co-director of LAOB. Hamilton and other LAOB staff also described ongoing work with the Vermont Housing Finance Agency (VHFA) on technical assistance for emerging developers and capacity-building with community groups.

Funding context and uncertainty

LAOB staff told the committee that the governor’s current budget includes $1.6 million in one-time general-fund support for LAOB (not yet base funding). LAOB staff also said carryforward funds of roughly $224,000 would raise the near-term total to about $1.8 million. The board said it has previously received nearly $2 million across three appropriation cycles.

The LAOB described an additional subaward relationship tied to an Environmental Protection Agency (EPA) regional project: a potential $525,000 award over three years that would flow through a Boston-based intermediary and a $48 million pool administered by a regional nonprofit. LAOB staff cautioned the committee that the EPA contract was still uncertain and described it as "up in the air."

Programs and priorities

LAOB outlined three strategic buckets: strengthening human infrastructure, stabilizing housing, and improving land access. Staff described current and planned activities that include:

- Secure Housing Coaches: five full-time coaches to provide case-management style navigation through housing and lending systems. - Technical assistance with VHFA for emerging developers to expand the pool of local developers building affordable housing. - Garden grant pilots placed in affordable-housing settings and emergency preparedness grants for community resilience. - Direct grants and capacity-building to community organizations, with an emphasis on equity and avoiding program duplication.

How the cannabis excise allocation would interact with existing law

Committee members raised concerns about diverting revenue from other uses. LAOB staff said the proposed allocation would be new and not a current flow of funds: one committee member asked, "25% of the cannabis. That's not happening today, right?" LAOB staff answered that the 25% allocation would be a new ongoing allocation and acknowledged that, if enacted, it would reduce the share of excise revenue that otherwise flows to the general fund. LAOB staff also noted that 30% of the cannabis excise tax is statutorily carved out for substance misuse prevention and that that statutory carve-out would not change.

Other fiscal notes from LAOB

- LAOB requested roughly $5.6 million under the proposed 25% model (the presenters also used $5.9 million in some slides to reflect a modest carryforward adjustment): presenters characterized those figures as estimates and referenced Joint Fiscal Office estimates. - The LAOB said it expects to use a mix of federal, philanthropic and state funding to support programs and that it has already pursued philanthropic and federal avenues, including discussions with the Vermont Community Foundation and New England Grassroots Fund.

Committee reaction and next steps

Committee members thanked LAOB staff for work over the last year and asked for additional detail about the proposed budget line items, program designs and any materials from the Cannabis Control Board’s community reinvestment recommendations. LAOB staff said they would circulate the CCB community reinvestment slides and detailed budget materials to the committee by email.

No formal vote or committee action occurred during the presentation. Appropriators noted that any statutory allocation of the cannabis excise tax would require separate legislative action and that the LAOB’s request would need to be considered in policy and appropriations deliberations this session.

"We are very much in a position now that we see a future for LAOB," Cornelia Fieroa told the committee, summarizing the board’s year-one accomplishments and the priorities staff say the proposed funding would support.

Looking ahead, LAOB asked the committee for continued engagement on design details and noted that decisions about ongoing allocations and statutory changes would proceed through the Legislature’s policy and budget processes.