Interim Act 250 Housing Exemptions

What you need to know

The temporary exemptions from Act 250 jurisdiction over housing development in Act 181 of 2024 provide an opportunity to accelerate homebuilding while a new location-based jurisdiction of Act 250 is designed and implemented. Jurisdictional Tiers 1A and 1B take effect on January 1, 2026, Tiers 2 and 3 take effect on December 31, 2026.

These temporary exemptions will encourage housing where we want it – in town and village areas that are walkable and bikeable - while providing access to nearby transportation and employment. Sustainable development in compact centers will help Vermont retain its rural and working landscapes, minimize impacts to our climate, and protect the natural environment.

Is your project exempt?

Here are 3 easy steps to see if your project lines up with the Act 181 interim housing exemptions:

Check the online Housing Exemption Map to locate your site and determine whether it is within an exempted area.

Talk to your district coordinator to determine whether exemptions apply to your project. You might also want to ask for a jurisdictional opinion (JO) prior to construction. A JO stating that your project qualifies for an exemption may be beneficial for financing or other purposes. (Note: If your project is a Priority Housing Project, you are required to get a JO under the law.)

Review our Housing Exemptions Guidance. It contains details and statutory language for each of the housing exemptions listed below. See this FAQ document for answers to frequently asked questions

Click on a link to jump to that exemption:

Interim Exemption List

Priority Housing Projects

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 Downtown Housing

Maximum dwelling units	Unlimited
Availability	Through January 1, 2027
Qualifying locations	Within designated downtowns
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

Designated New Town Center, Growth Center, or Neighborhood Development Area Housing

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
Local regulation requirements	Permanent zoning & subdivision
Infrastructure requirements	Served by public water and sewer or soils adequate for wastewater disposal

Chittenden County Transit Corridor Housing

Maximum dwelling units	50
Availability	Through January 1, 2027
Qualifying locations	Within designated village centers + ¼ mile around these areas
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

Designated Village Center Housing

Maximum dwelling units	50
Availability	Through January 1, 2027
Qualifying locations	Within designated village centers + ¼ mile around these areas
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

Commercial to Residential Conversions

Maximum dwelling units	29
Availability	Through July 1, 2028
Qualifying Locations	State-wide

Accessory Dwelling Units

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

New Permanent Exemption for hotel/motel conversions to permanent affordable housing

Hotel/Motel to Affordable Housing Conversions

Act 181 also provides one permanent housing exemption for the conversion of an existing hotel or motel to permanently affordable housing does not require an Act 250 permit amendment. This exemption applies state-wide.

Repeal

Repeal of 24-unit exemption and 1 unit = 4 units provision

Previous statutory language allowing for the construction of housing projects with less than 25 units in certain designated areas without a permit has been repealed. Additionally, statutory provisions allowing four units to be counted as one unit has been repealed.