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A New Land Use Review Framework (Act 181)

Overview | Act 181 Projects - Rules, Reports, and Processes | Resources

Overview of Changes

Act 181 of (2024) made changes to various laws related to land use, commercial development, and housing development such as:

  • Created the Land Use Review Board (LURB), a full-time, professional, 5-member board with expertise in planning, development, environmental science, and law.
  • Encouraged smart-growth housing and shifted towards a location-based Act 250 jurisdiction model by adding temporary Interim Housing Exemptions through 2027
  • Outlined the framework for a long-term approach to Act 250 jurisdiction involving tiers or areas of jurisdiction. The Legislature charged the Board with the development of rules and the review of regional plans and maps to implement the tiered framework of jurisdiction starting in 2025 and extending through 2026. The Board’s charge includes the approval of future land use maps developed via public processes engaging municipalities and regional planning commissions. The tiers are as follows:
    • Tier 1A/1B - Areas with capacity for growth where limited or no Act 250 jurisdiction will apply. Effective upon approval by the Board beginning fall 2025/winter 2026.
    • Tier 2 – All areas that are not tier 1 or tier 3. Existing jurisdictional thresholds will remain based on acreage, units, or lots created. Additionally, construction based on the length of roads and driveways will apply starting July 1, 2026.
    • Tier 3 – Additional jurisdiction for critical natural resource areas. 
  • Simplified the State’s Designation Program to better provide incentives, align policies and give communities the technical assistance needed to encourage new development and redevelopment in our compact, designated areas. The Act also created the Community Investment Board (former Downtown Board) to allocate resources statewide.  
  • Tasked the Regional Planning Commissions to create Future Land Use Maps (FLU maps) based on new standards through a public process with a focus on equity, climate resilience, mitigation and adaptation. The FLU maps must utilize consistent land use categories across the state. Four of the categories – Downtowns, Village Centers, Planned Growth Areas, and Village Areas – coordinate with the state designation and Act 250 jurisdictional areas.  

Act 181 Projects - Rules, Reports, Processes

Act 181 directs the Board to conduct several studies, promulgate rules, adopt guidelines and create processes to implement the Act. Follow these links for more information about the status of the Board’s work on these Act 181 project areas:  

Related Resources 

Housing Exemptions - Learn which exemptions might apply to your project. Check out the interactive map and guidance document.

Accessory On-farm Businesses - Act 250 now has an exemption for on-farm businesses that closely mirrors the definition used by municipalities. See the Agency of Agriculture Food and Markets webpage. 

The Statute - Act 181 (2024) 

Legislative Summary – Act 181 summary produced by the Agency of Commerce and Community Development.