State housing agency outlines downtown incentives, Homes For All toolkit and HUD programs to spur production

MONTPELIER, Vt. — The Department of Housing and Community Development told the House Committee on General and Housing on Jan. 16 that a mix of downtown designation incentives, local transportation improvements and a new Homes For All effort are being used to restart housing production in Vermont's towns and villages.

Commissioner Alex Farrell opened the presentation by describing DHCD's structure and staff and asked his division directors to highlight programs the committee would see repeatedly in its work. "When you hear folks talking about community development, that's us," Farrell said as he laid out the department's mission.

Why it matters: DHCD said the state needs a portfolio approach: zoning and permitting improvements, local infrastructure and targeted incentives such as designation tax credits that reduce redevelopment costs in downtowns and village centers.

Key programs described

- Downtown & Village Center designations and tax credits. Chris Cochran, director of Community Planning and Revitalization, said the downtown designation program covers communities across every county and that the related tax credits have been evaluated favorably by the Joint Fiscal Office for achieving goals the legislature set.

- Downtown Transportation Fund. Cochran said grants target pedestrian and bicycle improvements and street amenities that make downtowns safer and more attractive for residents and customers.

- Homes For All. Cochran outlined a multi-phase effort the department is piloting: a short workbook (phase 1), a training cohort to upskill local developers (phase 2) and a preapproved catalog of community-friendly house designs for municipalities to adopt (phase 3). The goal is to enable local builders and municipal officials to produce housing at a scale that fits their neighborhoods.

- Historic preservation and state-owned historic sites. DHCD briefed the committee on the state Historic Preservation Office's project review responsibilities and noted record attendance and revenues at state-owned historic sites last year.

- Vermont Community Development Program (CDBG) and recovery funds. Farrell noted that the state administers federal Community Development Block Grant money statewide (the City of Burlington is an entitlement grantee and administers its own CDBG). He said VCDP funding has been roughly constant for years (about $7 million annually) while needs have grown. He also told the committee that flood-related disaster recovery CDBG funds moving through the state are expected to total about $67—68 million and will be administered through the VCDP process.

Follow-up and materials

Cochran and Farrell said briefing materials and a short report the department submitted on tools and incentives are available to the committee. Cochran handed committee members a workbook tied to the Homes For All effort and said the department will e-mail copies and post them on the agency website.

Ending

Farrell told the committee the department will return with more detailed briefings, including an upcoming report on off-site construction and an expected legislative housing package the administration planned to release soon.