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Associated General Contractors urges permitting reform, funding and culture change to speed housing production

2113740 · January 15, 2025
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Summary

Sarah Mierhoff of AGC Vermont told the General & Housing Committee that permitting delays, high construction costs and workforce constraints hinder housing production and urged lawmakers to pair regulatory reforms with targeted funding and community outreach.

Sarah Mierhoff, director of advocacy and communications for the Associated General Contractors of Vermont, told the General & Housing Committee on Jan. 15 that permitting and appeals delays, high material and labor costs, and community resistance are major barriers to producing housing in Vermont.

Mierhoff framed AGC’s recommendations as three linked priorities: permitting and appeals reform, additional funding to make projects financially feasible, and measures to encourage a cultural shift so communities accept new housing. “Permitting and appeals can be long and arduous and expensive and unpredictable,” she said.

She noted that the HOME Act’s changes to Act 250 and downtown provisions were “a great start” but apply to a limited geographic area and do not help builders working outside dense centers. Mierhoff said members face long waits and logistical problems — she cited examples such as extended lead times for electrical panels and supply‑chain uncertainties — that increase project costs and delay housing delivery.

On funding, Mierhoff said even experienced, for‑profit developers have needed subsidies to make projects work and described the cost to build a unit as “out of this world.” She urged the legislature to couple regulatory reforms with funding for infrastructure and other public investments that lower per‑unit costs. The testimony referenced municipal infrastructure connection costs as a significant local barrier.

Mierhoff also raised workforce concerns, noting members struggle to recruit and retain workers when employees cannot find housing. Committee members asked about immigrant labor and hiring trends; Mierhoff said AGC supports safe and legal immigration policy and Vermont workforce training but did not provide statewide hiring statistics at the hearing and offered to follow up with data.

On the issue of local opposition, Mierhoff said builders often encounter “not in my backyard” sentiment and urged more public education and site visits to successful projects so communities can see that new housing need not be unattractive. She suggested AGC members could partner on demonstrations and outreach.

Committee members asked follow‑ups about labor, immigrant workers in construction, workforce training programs and design considerations that support healthy communities in new affordable housing. Mierhoff said members generally care about community outcomes and that adding regulatory mandates (for example, required shared amenities) risks increasing costs and complexity; she urged balancing design goals with feasibility.

Mierhoff closed by reiterating that permitting reform and funding must advance together, saying, “neither will work without the other,” and offering to provide additional data on membership coverage, labor composition and project examples. No formal actions or votes occurred during the AGC testimony.