Housing affordability is a real challenge for Vermonters due to many reasons but a major contributing factor is that new construction does not keep pace with demand. I was pleased to learn Vermont is taking a practical step toward easing our housing shortage by passing Act 69 which created the Community and Housing Infrastructure Program (CHIP), giving towns better tools to support new homes while improving core infrastructure. A win-win for existing homes and those yet to be built.
Many communities have available land and local support for housing but lack funding for water and sewer infrastructure. CHIP allows towns to use a project based Tax Increment Financing model to pay for those upgrades. The important piece for property owners is that this does not require higher local tax rates. The investment is repaid through new tax revenue created by the development itself over post-construction years.
Through 2035, towns can access up to $2 billion for infrastructure tied to housing. Projects can retain much of the education property tax growth they generate, with higher incentives for developments that include affordability. That encourages homes for working Vermonters, families, and older residents looking to stay in their communities.
Early projects are taking shape in St. Albans and Fair Haven, showing how local investment can create more housing options while strengthening the places people already call home.
