S 325 — An act relating to regional planning and Act 250 Tier jurisdiction

On or before December 1, 2026, the task force shall submit a written report to the House Committees on Environment and on General and Housing and the Senate Committees on Economic Development, Housing and General Affairs and on Natural Resources and Energy with its model codes and recommendations for legislative action.

(f) Meetings.

(1) The Commissioner of Housing and Community Development shall call the first meeting of the task force to occur on or before August 1, 2026.

BILL AS INTRODUCED AND PASSED BY SENATE S.325 Page 4 of 21 (2) The task force shall elect a chair from among its members at the first meeting.

(3) A majority of the membership shall constitute a quorum.

(4) The task force shall cease to exist on December 31, 2026.

(g) Compensation and reimbursement.

(1) For attendance at meetings during adjournment of the General Assembly, a legislative member of the task force serving in the legislator’s capacity as a legislator shall be entitled to per diem compensation and reimbursement of expenses pursuant to 2 V.S.A.

§ 23 for not more than six meetings.

(2) Other members of the task force who are not otherwise compensated by their employer shall be entitled to per diem compensation and reimbursement of expenses as permitted under 32 V.S.A.

§ 1010 for not more than six meetings.

(3) The payments under this subsection shall be made from monies appropriated by the General Assembly.

Sec.

2.

EFFECTIVE DATE This act shall take effect on passage.

This act is intended to provide technical clarification, transitional BILL AS INTRODUCED AND PASSED BY SENATE S.325 Page 5 of 21 certainty, and implementation alignment, consistent with the intent of 2024 Acts and Resolves No.

§§ 6001(3) 6001(3) is amended to read:

* * * VT LEG #388368 v.1 AS PASSED BY SENATE S.325 Page 2 of 27 (III) For the purpose of determining the length of any road and associated driveways, the length of all other roads and driveways within the tract of land constructed after July 1 January 1, 2026 2030, shall be included.

If the one-half mile around the designated center extends into an adjacent municipality, the legislative body of the adjacent municipal municipality may inform the Board that it does not want the exemption to VT LEG #388368 v.1 AS PASSED BY SENATE S.325 Page 3 of 27 extend into that area.

This exemption shall not apply to areas within mapped river corridors and floodplains except those areas containing preexisting BILL AS INTRODUCED AND PASSED BY SENATE S.325 Page 6 of 21 development in areas suitable for infill development as defined in 29-201 of the Vermont Flood Hazard Area and River Corridor Rule.

§§ 6001(35) 6001(35) is amended to read:

§§ 6081 6081 is amended to read:

VT* LEG* #388368* v.1(3) ASUpon PASSEDreceiving BYnotice SENATEand S.325a Pagecopy 4 of 27 (2) Notwithstanding any other provision of this chapter to the contrary, no permit orissued permit amendment is required within a Tier 1B area approved by thean Boardappropriate undermunicipal sectionpanel 6033pursuant ofto this24 chapterV.S.A. for 50 units or fewer of housing on a tract or tracts of land involving 10 acres or less or for mixed-use development with 50 units or fewer of housing on a tract or tracts of land involving 10 acres or less.

§ 4460(g), a previously issued permit for a development or subdivision located in a Tier 1A area shall remain attached to the property.

However, neither the Board nor the Agency of Natural Resources shall enforce the permit or assert amendment jurisdiction on the tract or tracts of land unless the designation is revoked or the municipality has not taken any reasonable action to enforce the conditions of the permit.

* * * (bb) Until July January 1, 2028 2030, no permit or permit amendment is required for the construction of improvements for one accessory dwelling unit constructed within or appurtenant to a single-family dwelling.

Units constructed pursuant to this subsection shall not count towards the total units constructed in other projects.

(cc) Until July January 1, 2028 2030, no permit or permit amendment is required for the construction of improvements for converting a structure used for a commercial purpose to 29 or fewer housing units.

BILL AS INTRODUCED AND PASSED BY SENATE S.325 Page 7 of 21 (dd) Interim housing exemptions.

(1) Notwithstanding any other provision of law to the contrary, until January 1, 2027 2030, no permit or permit amendment is required for the subdivision for or the construction of housing projects such as cooperatives, condominiums, dwellings, or mobile homes, and mixed-use development, with units or fewer, constructed or maintained on a tract or tracts of land, located entirely within the areas of a designated new town center, a designated growth center, or a designated neighborhood development area served by public sewer or water services or soils that are adequate for wastewater disposal.

Housing units constructed pursuant to this subdivision shall not count towards the total units constructed in other areas.

This exemption shall not apply to areas within mapped river corridors and floodplains except those areas containing preexisting development in areas suitable for infill development as defined in 29-201 of the Vermont Flood Hazard Area and River Corridor Rule.

(2)(A) Notwithstanding any other provision of law to the contrary, until July January 1, 2027 2030, no permit or permit amendment is required for the subdivision for or the construction of housing projects such as cooperatives, condominiums, dwellings, or mobile homes, and mixed-use development, with or fewer units, constructed or maintained on a tract or tracts of land of 10 acres or less, located entirely within:

(i) areas of a designated village center and within one-quarter mile of its boundary with permanent zoning and subdivision bylaws and served by public sewer or water services or soils that are adequate for wastewater disposal;

or (ii) areas of a municipality that are within a census-designated urbanized area with over 50,000 residents and within one-quarter mile of a transit route.

* * * (3) Notwithstanding any other provision of law to the contrary, until January 1, 2027 2030, no permit or permit amendment is required for the subdivision for or the construction of housing projects such as cooperatives, condominiums, dwellings, or mobile homes, and mixed-use development, constructed or maintained on a tract or tracts of land, located entirely within a designated downtown development district with permanent zoning and subdivision bylaws served by public sewer or water services or soils that are adequate for wastewater disposal.

Housing units constructed pursuant to this subdivision shall not count towards the total units constructed in other areas.

This exemption shall not apply to areas within mapped river corridors and BILL AS INTRODUCED AND PASSED BY SENATE S.325 Page 8 of 21 floodplains except those areas containing preexisting development in areas suitable for infill development as defined in 29-201 of the Vermont Flood Hazard Area and River Corridor Rule.

(4) Notwithstanding any other provision of law to the contrary, until January 1, 2030, no permit or permit amendment is required for the subdivision for or the construction of 50 units or fewer of housing with at least percent of the units with mixed income housing or mixed-use development, constructed or maintained on a tract or tracts of land, located within areas of a designated village center and within one-quarter mile of its boundary served by public sewer or water services or soils that are adequate for wastewater disposal.

Sec.

4.

10 V.S.A.

§ 6081 is amended to read:

§ 6081.

PERMITS REQUIRED;

EXEMPTIONS * * * (z)(1) Notwithstanding any other provision of this chapter to the contrary, no permit or permit amendment is required for any subdivision, development, or change to an existing project that is located entirely within a Tier 1A area under as established in section 6034 of this chapter.

(2) Notwithstanding any other provision of this chapter to the contrary, no permit or permit amendment is required within a Tier 1B area approved by the Board under section 6033 of this chapter for 50 units or fewer of housing on a tract or tracts of land involving 10 acres or less or for mixed-use development with 50 units or fewer of housing on a tract or tracts of land involving 10 acres or less.

VTBILL LEGAS #388368INTRODUCED v.1AND AS PASSED BY SENATE S.325 Page 59 of 2721 (cc) Until July January 1, 2028 2030, no permit or permit amendment is required for the construction of improvements for converting a structure used for a commercial purpose to 29 or fewer housing units.

(1) Notwithstanding any other provision of law to the contrary, until January 1, 2027 2030, no permit or permit amendment is required for the subdivision for or the construction of housing projects such as cooperatives, condominiums, dwellings, or mobile homes, and mixed-use development, with 75 units or fewer, constructed or maintained on a tract or tracts of land, located entirely within the areas of a designated new town center, a designated growth center, or a designated neighborhood development area served by public sewer or water services or soils that are adequate for wastewater disposal.

(2)(A) Notwithstanding any other provision of law to the contrary, until July January 1, 2027 2030, no permit or permit amendment is required for the subdivision for or the construction of housing projects such as cooperatives, condominiums, dwellings, or mobile homes, and mixed-use development, with VT LEG #388368 v.1 AS PASSED BY SENATE S.325 Page 6 of 27 50 or fewer units, constructed or maintained on a tract or tracts of land of 10 acres or less, located entirely within:

* * * (3) Notwithstanding any other provision of law to the contrary, until January 1, 2027 2030, no permit or permit amendment is required for the subdivision for or the construction of housing projects such as cooperatives, condominiums, dwellings, or mobile homes, and mixed-use development, constructed or maintained on a tract or tracts of land, located entirely within a designated downtown development district with permanent zoning and subdivision bylaws served by public sewer or water services or soils that are BILL AS INTRODUCED AND PASSED BY SENATE S.325 Page 10 of 21 adequate for wastewater disposal.

This exemption shall not apply to areas within mapped river corridors and floodplains except those areas containing preexisting development in areas VT LEG #388368 v.1 AS PASSED BY SENATE S.325 Page 7 of 27 suitable for infill development as defined in 29-201 of the Vermont Flood Hazard Area and River Corridor Rule.

(4) Notwithstanding any other provision of law to the contrary, until January 1, 2030, no permit or permit amendment is required for the subdivision for or the construction of 50 units or fewer of housing with at least 20 percent of the units with mixed income housing or mixed-use development, constructed or maintained on a tract or tracts of land, located within areas of a designated village center and within one-quarter mile of its boundary served by public sewer or water services or soils that are adequate for wastewater disposal.

The Board shall review the definition of Tier 3 area;

determine any additional critical natural resources that should be VT LEG #388368 v.1 AS PASSED BY SENATE S.325 Page 8 of 27 added to the definition;

* * * (c) The Board shall file a final proposed rule with the Secretary of State and the Legislative Committee on Administrative Rules on or before February 1 June 30, 2026 2028.

BILL AS INTRODUCED AND PASSED BY SENATE S.325 Page 11 of 21 * * * Sec.

§§ 6025 6025 is amended to read:

RULES * * * (d) Consistent with the intent of subdivision 6001(3)(A)(xii) and the Tier 3 rulemaking requirements, the Board shall have authority to adopt rules establishing a process to limit the criteria that would apply to road VT LEG #388368 v.1 AS PASSED BY SENATE S.325 Page 9 of 27 development pursuant to subdivision 6001(3)(A)(xii) and development within Tier 3 areas.

§§ 6001), 6001), and 13 (10 V.S.A.

§§ 6086(a)(8)), 6086(a)(8)), and 21 (10(10 V.S.A. V.S.A.

§§ 6001) 6001) shall take effect on December 31, 2026 January 1, 2028 and Sec.

§§ 6001(3)(A)(xii)) 6001(3)(A)(xii)) shall take effect on July 1, 2026 January 1, 2030;

§§ 6034 6034 is amended to read:

* * * VT LEG #388368 v.1 AS PASSED BY SENATE S.325 Page 10 of 27 (G) The municipality has identified and planned for the maintenance of significant natural communities, rare, threatened, and endangered species located in the Tier 1A area or excluded those areas from the Tier 1A area.

APPROPRIATE MUNICIPAL PANELS BILL AS INTRODUCED AND PASSED BY SENATE S.325 Page 12 of 21 * * * (g)(1) This subsection shall apply to a subdivision or development that:

§§ 6034; 6034;

VT LEG #388368 v.1 AS PASSED BY SENATE S.325 Page 11 of 27 (B) compliance with another State permit that has independent jurisdiction;

In addition, notice shall be provided to those persons requiring notice under 1010 V.S.A. V.S.A.

VT LEG #388368 v.1 AS PASSED BY SENATE S.325 Page 12 of 27 (6) Any final action by the appropriate municipal panel affecting a condition of a permit previously issued pursuant to 10 V.S.A.

BILL AS INTRODUCED AND PASSED BY SENATE S.325 Page 13 of 21 (h) Within a Tier 1A area, the appropriate municipal panel shall enforce any existing permits issued under 10 V.S.A.

VT LEG #388368 v.1 AS PASSED BY SENATE S.325 Page 13 of 27 (b) The report shall also include a status update on the 802 Homes pilot program and recommendations for how to improve the efficiency of appeals of municipal zoning permits for housing.

§§ 4348 4348 is amended to read:

ADOPTION AND AMENDMENT OF REGIONAL PLAN * * * (b) 60 Sixty days prior to holding the first public hearing on a regional plan adoption, a regional planning commission shall submit a draft regional plan to the Land Use Review Board for review and comments related to conformance of the draft with sections 4302 and 4348a of this title and chapter 139 of this title.

(c) The regional planning commission shall hold two or more public hearings within the region after public notice on any proposed plan or VTBILL LEGAS #388368INTRODUCED v.1AND AS PASSED BY SENATE S.325 Page 14 of 2721 amendment.

or by certified mail, return receipt requested, to the chair of the VT LEG #388368 v.1 AS PASSED BY SENATE S.325 Page 15 of 27 legislative body of each municipality within the region and to any individual or organization requesting a copy at least 30 days prior to the final hearing.

The request may only be BILL AS INTRODUCED AND PASSED BY SENATE S.325 Page 15 of 21 submitted after an affirmative vote of the municipal legislative body and the regional planning commission board.

The Land Use Review Board, after consultation with the Community Investment Board and the regional planning commissions, shall provide guidance about what constitutes a minor VT LEG #388368 v.1 AS PASSED BY SENATE S.325 Page 16 of 27 amendment.

The public hearing notice shall include a description of changes to the plan VT LEG #388368 v.1 AS PASSED BY SENATE S.325 Page 17 of 27 including non-minor amendments to future land use maps, or any changes to Tier 1B area status.

(D) The Land Use Review Board shall hold a public hearing within 30 days after receiving the request for an affirmative determination of regional plan amendment compliance or approval of Tier 1B area status.

BILL AS INTRODUCED AND PASSED BY SENATE S.325 Page 16 of 21 (2) Adoption of a regional plan amendment, non-minor future land use map amendment, or Tier 1B area status request or amendment shall not change the expiration date of the regional plan.

§§ 4348a 4348a is amended to read:

§§ 4348a. 4348a.

ELEMENTS OF A REGIONAL PLAN (a) A regional plan shall be consistent with the goals established in section 4302 of this title and shall include the following:

VT LEG #388368 v.1 AS PASSED BY SENATE S.325 Page 18 of 27 * * * (12) A future land use element, based upon the elements in this section, that sets forth the present and prospective location, amount, intensity, and character of such land uses in relation to the provision of necessary community facilities and services and that consists of a map delineating future land use area boundaries for the land uses in subdivisions (A)–(J) of this subdivision (12) as appropriate and any other special land use category the regional planning commission deems necessary;

descriptions of intended future land uses, consistent with the smart growth principles in sectionsection 4303 4303 of this chapter;

Village centers are not required to have public water, wastewater, zoning, or VT LEG #388368 v.1 AS PASSED BY SENATE S.325 Page 19 of 27 subdivision bylaws.

These areas include new town centers, downtowns, village centers, growth centers, and neighborhood development areas BILL AS INTRODUCED AND PASSED BY SENATE S.325 Page 17 of 21 previously designated under chapter 76A of this title.

* * * (vi) The area provides for opportunity for development, infill development, and redevelopment that is needed to meet the regional and VT LEG #388368 v.1 AS PASSED BY SENATE S.325 Page 20 of 27 municipal housing targets that meets meet the present and future needs of a diversity of social and income groups in the community.

VT LEG #388368 v.1 AS PASSED BY SENATE S.325 Page 21 of 27 (v) The area has some opportunity for infill development or new development areas where the village can grow, support the development of housing to meet the regional and municipal housing targets, and be flood resilient.

* * * BILL AS INTRODUCED AND PASSED BY SENATE S.325 Page 18 of 21 (J) Rural;

* * * (d) With the exception of preexisting, nonconforming designations approved prior to the establishment of the State Community Investment program, the areas eligible for designation benefits under that program upon the Land Use Review Board’s approval of the regional plan future land use map for designation as a downtown center or village center shall not include development that is disconnected from a downtown or village center and that VT LEG #388368 v.1 AS PASSED BY SENATE S.325 Page 22 of 27 lacks an existing or planned pedestrian connection to the center via a complete street.

§§ 4303 4303 is amended to read:

BILL AS INTRODUCED AND PASSED BY SENATE S.325 Page 19 of 21 (F) balances growth with the availability of economic and efficient public utilities and services;

VT LEG #388368 v.1 AS PASSED BY SENATE S.325 Page 23 of 27 (G) supports a diversity of viable businesses in downtowns and villages;

REPEAL 24 V.S.A.

§§ 4476 4476 (formal review of regional planning commission decisions) is repealed.

VT LEG #388368 v.1 AS PASSED BY SENATE S.325 Page 24 of 27 Sec.

§§ 5801 5801 is amended to read:

* * * (8) “Planned growth area” means an area on the regional plan future land use maps required under section 4348a of this title, which may encompass a downtown center or village center on the regional future land use map and may be designated as a center or neighborhood, or both meeting the BILL AS INTRODUCED AND PASSED BY SENATE S.325 Page 20 of 21 requirements of subdivision 4348a(12)(B) of this title and that may be designated as a neighborhood.

* * * (12) “State Designated Downtown and Center or Village Center” or “designated center” means a contiguous downtown or village a portion of VT LEG #388368 v.1 AS PASSED BY SENATE S.325 Page 25 of 27 which is listed or eligible for listing in the national register of historic places area center approved as part of the LURB review of regional plan future land use maps, which may include an approved preexisting designated designated downtown, village center, or designated new town center established prior to the approval of the regional plan future land use maps.

§§ 5803 5803 is amended to read:

The regional plan future land use map shall identify VT LEG #388368 v.1 AS PASSED BY SENATE S.325 Page 26 of 27 downtown centers and village centers as the downtown and village areas eligible for designation as centers.

* * * BILL AS INTRODUCED AND PASSED BY SENATE S.325 Page 21 of 21 (c) Exclusions.

§§ 5930bb 5930bb is amended to read:

The guidelines shall clearly indicate that only applications VT LEG #388368 v.1 AS PASSED BY SENATE S.325 Page 27 of 27 located in Step 2 and Step 3 State designated centers or Step 1 centers where a portion of the designated center is listed or eligible for listing in the national register of historic places shall be considered.

* * * * * * EffectiveAppropriations Date * * * Sec.

APPROPRIATIONS (a) In fiscal year 2027, $200,000.00 is appropriated from the General Fund to the Agency of Commerce and Community Development to develop additional model plans as part of the 802 Homes program.

(b) In fiscal year 2027, $100,000.00 is appropriated from the General Fund to the Land Use Review Board to conduct public engagement and education on Tier 3 areas.

* * * Effective Date * * * Sec.

2019.

VT LEG #388368 v.1