Act 181 was enacted on June 17, 2024, making major changes to Vermont’s land use planning and regulatory framework to strengthen place-based regulatory recognition and investments guided by regional planning and municipal action. In addition to changes to regional land use maps, the state designation program and Act 250 jurisdiction, the Act makes technical changes to local zoning pre-emptions made by the HOME Act of 2023. DHCD has prepared a Summary of the Act. If you have questions or need assistance with bylaw updates, please contact Greta Brunswick.
Interim Act 250 Exemptions for Housing:
Location-based
- Priority Housing Projects
- Designated Downtowns
- Town & Growth Centers and Neighborhood Dev.
- Designated Village Centers
- Transit Corridors
Priority Housing Projects + ½ mile (unlimited units)
| Maximum dwelling units | Unlimited |
| Availability | Through January 1, 2027 |
| Affordability requirements | Must qualify as a mixed-income priority housing project |
| Qualifying locations | Within designated downtowns, neighborhood development area, or growth center + ½ mile around these areas |
| Local regulation requirements | Permanent zoning & subdivision |
| Infrastructure requirements | Served by public water and sewer or soils adequate for wastewater disposal |
Designated Downtowns (unlimited units)
| Maximum dwelling units | Unlimited |
| Availability | Through January 1, 2027 |
| Qualifying locations | Within designated downtowns |
| Location exclusions | River corridors and flood hazard areas, unless infill |
| Local regulation requirements | Permanent zoning & subdivision |
| Infrastructure requirements | Served by public water and sewer or soils adequate for wastewater disposal |
New Town Centers, Growth Centers & Neighborhood Development Areas (75 units)
| Maximum dwelling units | 75 |
| Availability | Through January 1, 2027 |
| Qualifying locations | Within designated new town centers, growth centers and neighborhood development areas |
| Location exclusions | River corridors and flood hazard areas, unless infill |
| Local regulation requirements | Permanent zoning & subdivision |
| Infrastructure requirements | Served by public water and sewer or soils adequate for wastewater disposal |
Designated Village Centers + 1/4 mile (50 units)
| Maximum dwelling units | 50 |
| Availability | Through July 1, 2027 |
| Qualifying locations | Within designated village centers + ¼ mile around these areas |
| Location exclusions | River corridors and flood hazard areas, unless infill |
| Local regulation requirements | Permanent zoning & subdivision |
| Infrastructure requirements | Served by public water and sewer or soils adequate for wastewater disposal |
Transit Corridors + 1/4 mile (50 units)
| Maximum dwelling units | 50 |
| Availability | Through July 1, 2027 |
| Qualifying locations | Within Census-Designated Urbanized Area of 50K within ¼ mile of transit route |
| Location exclusions | River corridors and flood hazard areas |
| Local regulation requirements | Permanent zoning & subdivision |
| Infrastructure requirements | Served by public water and sewer or soils adequate for wastewater disposal |
Type-based
Commercial Conversion (29 units)
| Maximum dwelling units | 29 |
| Availability | Through July 1, 2028 |
| Qualifying locations | Statewide |
Accessory Dwelling Units (1/ home)
| Maximum dwelling units | 1 per single-family dwelling |
| Availability | Through July 1, 2028 |
| Qualifying locations | On owner-occupied lot |
| Size limits | Cannot exceed 30% of habitable floor area of single-family home or 900 square feet, whichever is greater |
Hotel/Motel Conversion to affordable (unlimited units)
| Maximum dwelling units | No permit amendment for conversion to affordable housing defined under 24 V.S.A. sec. 4303(2) |
| Availability | Permanent |
| Qualifying locations | Hotels/motels |
Municipal Zoning Changes
