Senate panel hears progress report on HOME Act and Act 181 implementation, LURB staffing and regional mapping

Montpelier — State and regional planning officials told the Senate Committee on Economic Development, Housing & General Affairs on Feb. 4 that work to implement the HOME Act and Act 181 is under way, with interim exemptions, mapping and new appeal procedures moving forward even as rulemaking, technical guidance and further studies remain to be completed.

"Housing is a climate and environmental solution," said Katie Gallagher, director of the Sustainable Communities program at the Vermont Natural Resources Council, in opening the committee briefing. Gallagher said the HOME Act and Act 181 are intended to focus growth into compact, walkable centers and to make it feasible to build smaller-scale infill housing in places with existing infrastructure.

The committee heard four principal implementation updates: the Land Use Review Board (LURB) has been professionalized and seated; interim exemptions from Act 250 are active to speed housing in designated areas; regional planning commissions (RPCs) are preparing consistent future‑land‑use maps and municipal allocations for state housing targets; and several required studies and rule‑making steps remain, including appeals reforms and environmental rules.

The Land Use Review Board, established by Act 181 to replace the volunteer Natural Resources Board, is operating as a professionalized body with five full‑time members, three of whom the board said have planning experience. "They are drinking from the fire hose and getting up to speed," said Pete Veil, executive director for the Land Use Review Board. Chair Janet Hurley told the committee the board is organizing to meet the law's deadlines and will bring policy items to open meetings once initial work is done.

Act 181 changes the way Act 250 jurisdiction is applied, moving from fixed project‑size triggers to a tiered, location‑based system tied to locally mapped areas (downtown centers, village centers, planned growth areas and village areas). Gallagher and RPC representatives said the change is meant to direct public investments and regulatory review toward places towns designate for growth while protecting working lands and critical natural resources.

To avoid delays while municipalities and regions complete new maps and plans, the state published interim Act 250 exemption maps. Pete Veil said staff have recorded about 1,600 potential housing units that would be allowed under those interim exemptions if every eligible project were built; he cautioned that the number is an estimate because jurisdictions are not required to seek formal jurisdictional opinions. Gallagher told senators that roughly 89 percent of towns have public water or wastewater systems and about one‑third have both — facts that affect where higher densities can be feasible.

RPC leaders described the mapping and municipal target process. Catherine Demitri (spelled in transcript as Catherine Dimitrick), executive director of the Northwest Regional Planning Commission, and Charlie Baker, representing regional planning interests, said the state released housing targets divided by RPC boundaries and each RPC is municipalizing those targets — assigning a share to each town — while also creating the ten consistent future‑land‑use categories required by statute. The RPCs reported they expect to complete regional planning work on a timetable that aims for adoption and state review through 2026.

Officials emphasized that the new regional maps will do double duty: they will support the state designation and investment programs (centers and neighborhoods) and will set the geography used for Act 250’s tiered jurisdictional thresholds in communities that opt in. Gallagher and RPC staff said the new approach expands the acreage eligible for state incentives compared with the older five‑designation system; one example shown to the committee illustrated expanding a town center area from about 59 acres to roughly 417 acres under the new mapping.

Appeals and timelines remain a focus. Act 181 raises the number of petitioners required to file some appeals and sets a goal for the Environmental Division to issue decisions within 90 days after a hearing. The law also requires studies — including an appeals study due to the Legislature in 2026 — and LURB and agency rule‑making to fully implement the statute. Janet Hurley said the board has not yet taken big policy positions and will move forward under the law as written, adding that the board intends to address environmental justice as part of its work.

Committee members pressed officials on demonstration of local support, the role of Complete Streets and transportation standards in enabling walkable centers, the potential for town land banks and infrastructure financing, and how data will be tracked. Gallagher and RPC staff pointed senators to new online resources (the Vermont Zoning Atlas, housing dashboards such as housingdata.org and state interim exemption maps) and said DHCD and VHFA are producing tracking tools; RPCs reported they also maintain local dashboards for permit and building data going back several years.

Officials urged continued funding for municipal and regional planning capacity. RPC speakers said the commissions operate mostly on grant funding and service contracts, and that municipal planning grants and navigator programs have helped towns pursue bylaw updates, zoning, sewer/water planning and small‑scale projects. Committee members signaled interest in considering legislative fixes or clarifications in future sessions where mapping, sewer service area definitions and other questions have created confusion at the local level.

The briefing closed with committee members and officials underscoring outreach priorities, particularly for communities that do not typically attend public meetings. "Creative ways to bring in voices of the unhoused into that process" were urged by a senator, and RPC staff said they will continue targeted engagement with underrepresented groups and municipal boards.

What happened next: committee members and LURB staff discussed scheduling additional briefings and suggested follow‑ups on appeals, Complete Streets design standards and environmental justice work. No committee votes or formal votes were taken during the hearing.

Sources: committee hearing, Feb. 4, 2025; testimony by Katie Gallagher (Vermont Natural Resources Council), Pete Veil (Land Use Review Board), Janet Hurley (LURB chair), Catherine Demitri and Charlie Baker (regional planning commissions); posted interim exemption maps and state housing data referenced at the hearing.