Committee debates 20% density bonus for projects using union or prevailing-wage labor

Legislative counsel presented revised section 13 language proposing a 20% density bonus for multiunit residential developments of 45 or more units that use union labor or pay the prevailing wage defined by the Vermont Department of Labor. The stated purpose is to incentivize projects that deliver public benefits (stable, trained workforce and prevailing compensation) while enabling additional dwelling units through density bonuses.

Committee members split on the provision’s likely net effect. Supporters, including a representative of the Vermont AFL-CIO, said the language could attract capital and project investment (the AFL-CIO housing trust offered to invest in union-built projects). They argued a density bonus could absorb higher labor costs without increasing per-unit cost to the extent that the bonus allows the developer to build more units and spread fixed costs.

Opponents asked for independent cost analyses and developer testimony, noting studies (and quick vendor searches cited by members) that union labor can raise labor costs by a margin (some cited 10–30% range) and that a 20% density bonus may not offset that increase for all projects. Members requested data showing how the bonus would affect per-unit cost and whether the state treasury or other stakeholders would lose value under the incentive. The committee asked counsel to solicit developer evidence, economic costing, and impartial fiscal analysis before the provision is finalized.