Draft 'Vermont Homelessness Response Continuum' lays out five‑level system; committee debates hotel limits and winter policy

The committee reviewed Draft 3.1 of the "Vermont Homelessness Response Continuum," a bill that would create a five‑level framework for emergency and supportive housing, set eligibility and reporting requirements, and direct the Agency of Human Services (AHS) to administer the program through its Office of Economic Opportunity.

Katie McDonough, office of legislative counsel, told the committee the draft begins with findings that rely on Vermont Homeless Management Information System data showing 4,022 individuals experiencing homelessness in the state (860 of them children) and the 2024 Vermont housing needs assessment estimating 3,295 units are required to address homelessness between 2025 and 2029. She described the bill’s purpose as eliminating unsheltered homelessness and reducing reliance on hotel and motel rooms for emergency housing by creating a continuum that prioritizes prevention and rapid resolution.

The measure organizes responses into five levels: Level 1 (prevention and diversion), Level 2 (shelter services, split into highly structured and low‑barrier), Level 3 (specialized shelter services for populations with specific needs), Level 4 (permanent supportive housing, including family supportive housing), and Level 5 (hotels and motels with supportive services, separated into winter and non‑winter provisions). The draft would place program administration with OEO and require community partnerships or local housing coalitions to carry out prevention and diversion services.

Committee members pressed staff on key details. Unidentified Speaker 6 and others asked whether local housing coalitions have the formal capacity to receive and administer grants; McDonough said the bill anticipates regional coalitions deciding how best to manage funds and that the grant process would set allowable uses and expected outcomes. Members also debated whether hotel and motel placements should be run as shelters (raising zoning and permitting concerns) and whether statutory caps are needed to prevent overuse of hotel rooms; McDonough said she would propose caps and move cross‑cutting hotel requirements higher in the section so they apply to all programs.

On winter policy, the draft allows placements in general‑access hotels and motels annually between Dec. 1 and March 31 but says such placements “shall not occur on a night‑by‑night basis.” Several members agreed with McDonough that reverting to a daily decision model — which the department at one point proposed — would be a "nightmare to administer" and would be inhumane for people seeking shelter. The bill also establishes emergency cold‑weather shelter provisions tied to National Weather Service advisories and a municipal aid program to help high‑volume jurisdictions provide immediate shelter when conditions warrant.

The committee discussed program safeguards and oversight. The draft calls for a five‑year needs assessment cycle beginning in 2028, an appeals process with fair hearings at the Human Services Board, and reporting obligations the committee said should be clarified; members agreed to replace aspirational intent language with a requirement that OEO provide a progress report by January 15, 2028, on efforts to align continuums of care in collaboration with HUD.

Several lawmakers warned that statutory design and policy language will be hard to implement without clearer appropriation decisions and workforce investments. Unidentified Speaker 10 and others said the state lacks sufficient case managers and other community capacity to deliver the intensive services envisioned, and urged that a larger share of resources be routed into community‑based case management rather than centralizing staff at DCF. Other concerns included zoning and permitting implications if hotels operate with on‑site supportive services, and how smaller communities without existing infrastructure would access municipal aid.

The committee did not take a final vote on the homelessness draft; members said the bill will continue to be revised and that appropriation choices in the budget will determine how much of the continuum can be funded in the near term. McDonough and committee members agreed to continue refining statutory language clarifying which AHS departments lead specialized services, how local coalitions manage grants, and the mechanics of reporting and appeals.

The committee will return to the draft with suggested edits, proposed caps for hotel use, and more detail about reporting metrics and grant administration.