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Housing commissioner says S328’s municipal plan language and zoning changes are workable; committee to reconcile with House bill 775
Summary
At an April 7 House Committee hearing, Housing Commissioner Alex Frell told lawmakers he is "perfectly comfortable" with S328’s approach to municipal housing targets, the treasurer credit facility and manufactured-housing zoning definitions, but noted overlaps with the House bill 775 that the committee may reconcile before final action.
The House Committee on General and Housing heard testimony April 7 on S328, a multi-part housing bill that the committee is comparing with the House’s own bill 775. Alex Frell, introduced as commissioner of the Department of Housing and Community Development, told the committee the draft in S328 places municipal plan language at section 4382 and that regional planning commissions and the League of Cities and Towns favored that simpler placement.
"I'm perfectly comfortable with this," Frell said of S328’s municipal-plan language, adding that if regional planning commissions and VLCT find the approach easier for municipalities to understand and incorporate, the department supports it. He asked members to identify any parts of S328 they felt were superior to the House draft so they can be folded in if needed.
The committee and the commissioner discussed whether municipal plans should include an analysis of regulatory constraints or whether that analysis should be incorporated by reference from existing housing assessments and regional plans. Frell described the latter as a reasonable approach, noting the draft’s language allows municipalities to reference materials already produced such as local housing needs assessments or statewide housing needs reports.
On financing, Frell reviewed language about the treasurer’s credit facility and a proposed bulk-purchase authority. He said the House draft explicitly called out a 1% bulk-purchase use and that the treasurer should at least consider it; he was generally comfortable with the policy but deferred detailed fiscal questions to the treasurer’s office.
The committee also discussed a provision on VA lending that had been simplified in one draft; Frell said the simplification had unintended consequences for mixed residential-commercial projects and that counsel was working to restore the more detailed original agreement reached with VA and VHFA.
Zoning changes for manufactured housing drew extended discussion. Members and counsel clarified the legal distinction between "permitted" uses (by-right) and "allowed" or conditional uses that often require administrative or discretionary approval. Counsel provided a suggested definition for "permitted" to avoid confusion as drafters move language between committees.
On developmental disability housing, a member asked whether hypothetical federal funding increases (for example, an administration budget proposal) would change state funding plans. Frell and other witnesses said appropriations are not final until a budget is passed; if federal funding materialized, the legislature could revisit state allocations.
The commissioner concluded that he had no particular objections to the bill as drafted and that some pieces of S328 could be reconciled with the House’s 775. The committee thanked the witness and moved on to the next agenda item. The committee did not vote on S328 during this session and signaled it would coordinate with the related Senate committee and regional stakeholders as it prepares final drafting choices.
The committee’s next step is to reconcile overlapping provisions between S328 and House bill 775 and to consult with the treasurer’s office and affected regional entities before scheduling final action.
