Heather KoontzIn Montpelier, housing — or the lack thereof — has been a topic of conversation in many city meetings and feedback sessions so far this year. With large development projects in the works and an increasing demand for affordable housing, the city of Montpelier has a goal of developing 75 housing units per year. Right now, the average is 10 units.
To identify barriers and better understand the challenges facing housing developers, the Montpelier Housing Committee hosted a developer feedback meeting on April 7.
Committee chair Alyssa Schuren explained that insights shared by developers and housing providers would help the committee speak to the city council about ongoing projects and advocate for procedural changes.
“Your input is going to shape all of our subcommittees,” Schuren said. “We want to know what challenges or opportunities you see in terms of what we can do in Montpelier to make development easier.”
Policies and Regulations Cited as Main Roadblock
Among the issues discussed at the session, strict regulatory requirements were the most common barrier mentioned. Nearly all developers and housing providers mentioned a need for more supportive and concise policies that adapt as the city’s needs and goals change.
James Moore, a Montpelier builder, said lawmakers have been slow — or altogether in opposition — to change, despite an increasing goal to house more residents.
“There’s a desire to build more houses, but the policies haven’t changed,” Moore said. “Changing the goal doesn’t change the policies.”
Gabe LaJeunesse, owner of Aacred Development Holdings, LLC, added that building in neighboring New Hampshire is often less expensive because of a larger available workforce and a significantly lower regulatory burden.
Prohibitive regulatory requirements often include zoning and environmental barriers, but aesthetic-related building codes can also restrict development. According to an example from Schuren, a developer recently discovered that the windows required to build on a downtown lot would cost a quarter of a million dollars in order to maintain compatibility with the historic character of neighboring buildings.
Decades-old Law Creates Headaches for Developers
Act 250, which aims to protect the state’s natural resources and prevent urban sprawl, was also cited as a major hurdle to residential growth. Enacted in 1970, the land use and development law affects large development and subdivision projects with controls around permitting. Even after amendments to the Housing Opportunities Made for Everyone Act in 2023, critics say Act 250 still poses restrictions to growth.
The law also gives residents the right to appeal proposed development projects, which can lead to costly litigation and delays. A representative from Downstreet Housing and Community Development spoke about the appeals process and the legal fees, which can be detrimental for small businesses.
Environmental and Affordability Concerns Also Mentioned
While strict policies and the risk of additional fees seem to be the main barrier to entry, other development roadblocks — such as environmental factors and affordability — were also discussed.
Alan Goldman, who owns the land known as Sabin’s Pasture as well as other properties, said the physical restrictions of the Winooski River can make it difficult to build in Montpelier.
“It’s just been easier to build outside of the city. We have some flood constraints that Berlin, Barre, East Montpelier, and Waterbury don’t face as acutely. They have more areas they can build, and the regulations are clearer,” Goldman said. “The flood gave us a terrible lesson of how vulnerable we truly are.”
Many providers shared excitement about the ongoing Country Club Road (CCR) development project, which is advancing closer to developer selection. However, LaJeunesse shared that affordability is another major roadblock when it comes to housing in Montpelier — even with ambitious projects like CCR.
LaJeunesse said communities do better with mixed-income housing and encouraged the committee to study developments such as Cambrian Rise in Burlington, where various price points and socioeconomic levels combine to form a balanced development.
The Housing Committee was formed in 2022 to evaluate housing-related information and propose solutions to the city council, as well as educate and advocate for policies that further the city’s goals. Committee meetings are open to the public. The next meeting will be May 5 at 6 p.m. at the Montpelier Senior Activity Center or via Zoom.
