VT Policy Updates!

In honor of Fair Housing Month and recent state policy changes, AHW is providing a brief overview of policies to keep track of this year that are relevant to housing and the work we do here at AHW.

An Amendment to Act 250 … what is Act 181?
Vermont is at a crossroads. Faced with a deepening housing shortage and growing pressure to modernize its development rules, the state is taking a hard look at one of its most influential laws: Act 250.

Since 1970, Act 250 has regulated development via the nine district commissioners. This law regulates development projects based on size so bigger projects triggered more scrutiny, regardless of where they were located. For developers, including nonprofits such as AHW this means harder, longer, more expensive environmental permitting process regardless of the developments location.

The latest reform back in 2024, Act 181, introduces a location-based approach and a new Land Use Review Board responsible for reviewing land use maps and developing rules to implement new land use framework. The goal of Act 181 is to encourage development in the right places while protecting the state’s most sensitive landscapes.
The New Tiered System
At the heart of the reform is a three-tier framework that divides the state into different zones for development. These maps will be implemented starting at the end of 2026.
Tier 1 - Where Growth is Encouraged: These are Vermont’s downtowns, village centers, and areas with existing infrastructure. In these places, development is meant to be easier and faster – bypassing traditional Act 250 environmental review altogether.
Tier 2 - The Middle Ground: Covering much of the state, Tier 2 maintains a version of the current land use system, with some updates. One notable feature is the “road rule,” designed to limit sprawling, road-based development patterns that can strain infrastructure and fragment landscapes.
Tier 3 - Protecting Critical Resources: This tier includes environmentally sensitive areas. Development here faces the strictest scrutiny, reflecting a continued commitment to conservation.

Vermont’s housing shortage isn’t new, but it’s getting more urgent. Lawmakers hope this reform will encourage smart development while avoiding the pitfalls of unchecked growth that could erode the beautiful landscapes and important agricultural land that define the state.
To learn more listen to this podcast by Vermont Public Radio or visit the VT state webpage. 

The landlord-tenant bill (H.772) is in review
H.772, introduced during the 2025–2026 legislative session, is a wide-ranging bill aimed at updating Vermont’s rental laws. It touches on eviction procedures, tenant protections, and landlord responsibilities—areas that have become increasingly important as housing challenges intensify across the state. It is designed to modernize Vermont’s existing legal framework for rental housing. The legislation attempts to balance both tenant and landlord rights in a broader effort to stabilize the housing system.

Key elements of this bill include:
Eviction Procedures: One of the central components of H.772 is its update to eviction timelines and processes. The bill proposes changes to how quickly certain eviction cases can move through the system and clarifies the legal grounds under which a tenant can be removed. These updates are intended to make procedures more consistent and predictable. One key aspect of this legislation is that if eviction cases do reach the court system, there will be time-mandated hearings, a key aspect in helping landlords evict criminal or unsafe tenants.
Tenant Protections: H.772 also includes provisions that affect tenant rights and housing stability. Among them are:

• Limits on security deposits
• Restrictions on certain fees charged during the application process
• Clearer requirements for notices and communication between landlords and tenants

Some provisions also address protections for tenants in specific circumstances, such as those experiencing domestic violence.
Credit-Building Pilot Program: A notable feature of H.772 is the creation of a pilot program that allows tenants to report on-time rent payments to credit bureaus. This initiative is designed to help renters build or improve their credit histories—something that has traditionally been difficult for those without access to credit-based financial products.
Landlord Responsibilities: The bill outlines updated expectations for landlords, including compliance with notice requirements and limitations on certain practices. These changes are aimed at creating clearer standards across the rental market.
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H.772 is often described as a balancing measure. Its goals include: Improving the efficiency of the eviction process, providing clearer rules for both tenants and landlords, expanding certain tenant protections, supporting longer-term housing stability. You can read the current version of the bill here, or read the VPR news story here.