Developers praise new tools but warn of high per-unit costs, infrastructure limits and federal procurement rules

Multiple presenters told the committee that statutory reforms and program tools are helping projects move forward, but they cautioned that costs, infrastructure and federal procurement rules remain material barriers to scaling affordable housing. Kathy Meyer, senior vice president at Evermore (Northern New England), described the Chalet Apartments project — a phased development with 71 units at full buildout — and said that Act 181 and related exemptions had "shaved 4 to 5 months off the permitting process" and removed the risk of an Act 250 appeal for eligible projects.

Meyer also warned about federal procurement requirements tied to HUD funds. "Build America Buy America has applied to these federal dollars and it's creating challenges" she said, explaining the law's domestic-sourcing requirements can make it hard to source components (she gave elevators and specialty parts as examples) and urged that the state delegation be asked to press for targeted clarifications.

Committee members pressed on costs and scale. One member cited an example of a project with a roughly $560,000 per-unit cost on a specific site, prompting questions about material and labor drivers. Presenters and committee members agreed that water and wastewater capacity remains a frequent constraint for infill sites and that aligning infrastructure funding with housing targets will be necessary to meet regional goals.

Speakers urged continued alignment of funding priorities toward downtowns and designated centers, and several recommended more staff training for local development review boards to expedite consistent local decision-making as regional plans and designation tools roll out.