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Political notes from Free Press staff writers Terri Hallenbeck, Sam Hemingway and Nancy Remsen


2.25.2008

 

Whose house is a very fine house?

The Legislature isn't even in town (it being Monday) and the governor isn't even in the state (he being off in D.C. being elected chairman of the Coalition of Northeastern Governors), but the two entities are still managing to squabble via news releases.

Today's topic: The housing bill that is days, an maybe even more than a few days, from from a floor vote in the House. It is one of many bills torrenting toward the chute as legislators try to meet the March 14 "cross-over" deadline for bills to cross to the other chamber.

Don't be surprised if this is the bill that sits there surrounded by red lights and ambulances at the end of the session.

Is it one of those issues upon which people of differing political philosophies just cannot agree, or is there a solution that can take all points of view into consideration? You tell me.

First, from the governor, (sent via e-mail with one of those red exclamation points that marks it as high importance):

Governor Jim Douglas today said he is increasingly concerned that
Vermonters will not see meaningful housing legislation this year because the
House Democrat majority is “on the wrong track.”

“The House Democrat (did he really leave the -ic off? I guess so)
leadership is off on the wrong track. In this case, they are poised to
pass a bill that severely restricts where new homes can be built, adds costly
and time consuming regulations, restricts the amount of equity that homeowners
can get when they sell their home, and adds a cumbersome, expensive state
inspection program to duplicate work already being done by capable local
officials,” the Governor said. “Unfortunately, this majority does not
appreciate the fact that home construction can create hundreds of new jobs and
stimulate economic growth.”

Governor Douglas said Vermonters know
that now is a good time to put homeownership within reach of more working
families. “The majority controlling our House of Representatives
apparently does not agree,” Douglas continued.

To put
homeownership within reach of more working families—and to provide a significant
boost to our economy—Governor Douglas proposed the New Neighborhoods
initiative. The New Neighborhoods initiative streamlines the regulatory
systems, creates incentives for communities to approve new construction and
complements the existing low income housing network. Revised provisions of
this initiative address concerns heard last year from the Legislature—a clear
indication of Douglas’ interest in progress on this economic development issue.


“I’ve also offered an Urban Homestead proposal,”
Douglas said. “All throughout Vermont’s downtowns there are buildings with
thriving commercial space on the first floor but underutilized space on the
upper floors.” By providing tax incentives, Douglas wants to encourage
first-time homeowners to invest in these spaces—helping to significantly
increase the availability of affordable homes and economic growth in our
downtowns and village centers.

....


Then a few hours later, from the speaker's office:

I am disappointed that the Governor continues to mischaracterize the debate
over how best to improve access to affordable housing. H.863, An Act
Relating to Creation and Preservation of Affordable Housing and Smart Growth
Development, demonstrates the legislature’s commitment to affordable and safe
housing for all Vermonters.

H.863 allows for the creation of thousands of units of affordable housing
for working Vermonters and protects Vermonters who currently reside in unsafe or
unhealthy conditions. The bill takes these initiatives in ways that are
consistent with Vermonters’ community values.

In contrast, the Governor’s New Neighborhood initiative focuses on fairly
high value homes, radically weakens Act 250 without regard to smart growth, and
diverts taxes intended for schools to incentives for housing development – a
proposal that would inevitable lead to higher property taxes.

To toss aside Act 250 in as wholesale a manner as the Governor proposes
would be detrimental to Vermont’s economy and landscape and would seriously
compromise a law that has served Vermont well for three decades.

Adding fiscal insult to policy injury, Douglas’ budget diverts $6million
from the Vermont Housing and Conservation Board, a shortfall that would result
in 150 fewer affordable homes. As Sarah Carpenter, Director of the Vermont
Housing Finance Agency has said, “There is no single cause of the housing
affordability problem, and so there is no single solution. We need all the
tools available to make sure every Vermonter … has a safe, decent and affordable
place to call home.”
The legislature recognizes this in H.863’s multi-faceted approach to
housing creation and preservation.

H.863 would ease permit restrictions in qualifying Vermont Neighborhoods,
while retaining a focus on housing growth in village centers, downtowns and
growth centers. In order to qualify, 20% of the proposed development must
include at least moderately affordable homes.

...


I urge Governor Douglas to join with the legislature to work in a
constructive way towards safe and affordable Vermont Neighborhood housing.

Is there a solution?

- Terri Hallenbeck

Comments:
There probably is a solution that the two sides can reach, if this was not an election year.

One does have to wonder about two things, however:

1) why is are the politicans so concerned about affordable housing right now, when prices are falling and expected to do so for years? Shouldn't they be more focused on creating jobs so people can pay their mortgages and rents? Seems like they are always a few years behind the times.

2) the theory of this bill seems to be we can get rid of Act 250 and let the cities and towns regulate through zoning, at least in some areas. If that is OK, why do we need Act 250 at all in towns that have zoning? Or does Act 250 do something important to protect the environment?
 
It is a simple case of supply and demand. Very few homes are built, so builders realize no economy of scale and have to charge a premium. This (compounded by the costly regulatory processes in VT) inflates the selling price. Compound it by the fact there are fewer new homes available for sale than there are buyers for the homes. Therefore people offer a higher price to buy the home they really want.

To solve the problem, increase the supply...build more homes. They become cheaper to build and with more new home inventory, prices drop permanently. It’s the beauty of the free marketplace. Did everyone in Montpelier sleep through Economics 101?
 
While I agree with the last two posts, the problem is that the leftists in Montpelier, established now for over 20 years could care less about common sense or the good of middle class Vermonters. What is important to them is control, control, control. You know, like micro managing everything in a person's life, whether it be the color of his/her house or what your kid eats in school. Getting rid of ACT250 is too much common sense for the liberal bureaucrats.
 
As one poster already noted, it is a supply problem, and Act 250 is a big part of it. In the name of fighting "sprawl" Act 250 is used to stifle housing production and drive up the cost of what gets produced.

Since there appears to be significant segment of the population who are very happy not to see new housing developed, whether for aesthetic or other reasons, Act 250 is the perfect tool.

It is kind of funny how vigorously some anti-growth advocates defend every comma in Act 250, yet bemoan its "inflexibility" when it hits a project/cause they advocate for. See Will Raap's op-ed in Sunday's Burlington Free Press for a splendid example of this hypocrisy.
 
Wait a second. Case-Schiller reports today that national housing prices fell 8.9% during the October to December 2007 period. Maybe homes will be more affordable soon, and we don't need to go rushing out to change our laws and build more houses. Just let the bubble deflate.

Act 250 has smoothed out the real estate ups and downs in Vermont over the years. I've heard Realtors and appraisers say recently that the market will hold up better here than elsewhere because we did not overbuild. That fact is thanks to Act 250!

In my view, this bill should be put back on the wall while we see how this housing mess shakes out.
 
Yes, and when I was growing up in Vermont I used to hear the story that the reason Vermonters' didn't fare too poorly during the great depression was that they had nothing to lose! The lesson here: once you have sunk to the bottom, be happy, 'cause you can't drop any further!
 
Anonymous said "Case-Schiller reports today that national housing prices fell 8.9% during the October to December 2007 period. Maybe homes will be more affordable soon, and we don't need to go rushing out to change our laws and build more houses."

Sorry, but I think that's the national market not the Vermont market. There still aren't enough houses being built that working Vermonters can afford, and without increasing the supply I doubt the prices are going to fall here anytime soon.

Look at the listings in Montpelier. Cheapest listing for a single family, stick built home is $186,500, and its only one of three listings under $200K. Well, four if you count the one at $199,900.

I don't see a lot of jobs in the paper paying anywhere near the wages to make that mortgage payment.
 
Yet another heapin' helpin' of ignorant, ill-informed, white-supremacist horsebrit from the little bigot boy.

bubba said...

"While I agree with the last two posts, the problem is that the leftists in Montpelier, established now for over 20 years could care less about common sense or the good of middle class Vermonters. What is important to them is control, control, control. You know, like micro managing everything in a person's life, whether it be the color of his/her house or what your kid eats in school. Getting rid of ACT250 is too much common sense for the liberal bureaucrats."

Bubble boy, that's just pure unadulterated horsebrit with no foundation whatsoever.

The next piece of legitimate evidence you or you nameless-nitwit amen corner coughs up will be your first.

You're dumb. You're scum. You're dismissed. Take the klanmen's exit.
 
JWCOOP, You are vile and offensive. Please comply with the terms of use of this board.
 
As always, thank you for the courteous, thoughtful reply and the demonstrated respect of this board's Terms of Service. You do yourself proud...

BTW...you seem a little grumpy this morning.
 
Solving housing issues will not be done by the current Democratic leadership becasue they are not coalition builders.

ps - I am new to this blog but jwcoop really needs some help!
 
Agreed..... on all points!
 
Anonymous said: "Solving housing issues will not be done by the current Democratic leadership becasue they are not coalition builders."

No, solving housing issues will not be done by the current Democratic leadership because they are too beholden to the Vermont Natural Resources Council, the Conservation Law Foundation, the Vermont Land Trust, the Forum on Sprawl or Smart Growth Vermont or whatever they call themselves, etc.

When these groups say jump, Sen. Shumlin and Rep. Symington say, "How high?" That's why they can't say yes to even modest reforms of Act 250 to stimulate housing, but can make any kind of accomodation for composting operations for the Intervale.
 
interestingly enough, it sounds like compliance wiht the Act 250 regs are the death knell for the Intervale....hmmm
 
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