Sen. Benson seeks to remove permanent‑zoning requirement for certain 50‑unit housing exemption
March 26, 2026 | Natural Resources & Energy, SENATE, Committees, Legislative , Vermont
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Senator Benson explained to the Natural Resources & Energy committee that an amendment to the income‑housing exemptions would remove the statutory requirement that village centers and downtown development districts have permanent zoning and subdivision bylaws in order to qualify for a 50‑unit exemption. Benson said the change is intended to make towns that lack permanent zoning eligible to advance housing projects that otherwise would be delayed or rendered non‑viable by existing regulatory hurdles.
Benson told the committee that a community in his district, lacking permanent zoning, was ready to abandon a project after a district commission ruled the project was subject to the "Act 250 / act 2 50" process. "Active 50 creates a, a big hurdle...they're about ready to pull the plug on the project," Benson said, urging that the amendment treat those communities the same as towns that already have permanent zoning and subdivision bylaws.
The amendment's text (as read) would also remove a 10‑acre or less limitation for certain exempt constructions and would expand the geographic reach of a village‑center exemption beyond the current 0.25‑mile radius if public water and sewer service extends beyond that boundary. Several committee members, including the chair, said the draft read inconsistently — requiring a project to be "entirely within" a designated area while simultaneously allowing the exemption to extend beyond it — and worried the phrasing could create an unlimited or poorly‑bounded exemption.
The chair thanked Benson for a concrete example but said she would not support a straw poll without clearer language and more information; she suggested staff and sponsor follow up on drafting and that members would continue to work on a solution. No vote occurred.
Next steps: Staff and the sponsor will discuss possible redrafting to clarify boundaries and preserve statutory limits while addressing Benson's concern about towns that lack permanent zoning.
Benson told the committee that a community in his district, lacking permanent zoning, was ready to abandon a project after a district commission ruled the project was subject to the "Act 250 / act 2 50" process. "Active 50 creates a, a big hurdle...they're about ready to pull the plug on the project," Benson said, urging that the amendment treat those communities the same as towns that already have permanent zoning and subdivision bylaws.
The amendment's text (as read) would also remove a 10‑acre or less limitation for certain exempt constructions and would expand the geographic reach of a village‑center exemption beyond the current 0.25‑mile radius if public water and sewer service extends beyond that boundary. Several committee members, including the chair, said the draft read inconsistently — requiring a project to be "entirely within" a designated area while simultaneously allowing the exemption to extend beyond it — and worried the phrasing could create an unlimited or poorly‑bounded exemption.
The chair thanked Benson for a concrete example but said she would not support a straw poll without clearer language and more information; she suggested staff and sponsor follow up on drafting and that members would continue to work on a solution. No vote occurred.
Next steps: Staff and the sponsor will discuss possible redrafting to clarify boundaries and preserve statutory limits while addressing Benson's concern about towns that lack permanent zoning.
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