Vermont Housing & Conservation Board tells committee rising materials, labor and regulations drive high housing costs; tax credits and preservation key to keep‑

Gus Silo, director of the Vermont Housing & Conservation Board (VHCB), and Paulie Major, VHCB policy director, told the House Committee on General and Housing on Feb. 4 that rising construction costs, energy‑code requirements and regulatory delays have pushed total project prices far above pre‑pandemic levels.

“Cost and cost containment is always on our minds,” Silo said, noting the agency’s statutory goal to leverage state dollars and attract private tax‑credit equity to make projects financially feasible.

Why it matters: VHCB officials told lawmakers that although some projects have high total development costs, the state’s net subsidy per unit can be reduced when projects bring historic tax credits, low‑income housing tax credit equity, private debt and philanthropic fundraising to the table. They warned that addressing permitting delays, energy incentives, infrastructure availability and appeals processes is essential to contain costs and accelerate production.

VHCB presented data showing median total development costs for multifamily rental housing over the pandemic period near $330,000 per unit, with VHCB’s median investment about $135,000 per unit.…