Governor’s executive order rekindles discussion and debate about our affordable housing crisis

Although it lacks the intensity and sweeping scope of the multitudinous and sometimes controversial executive orders issued by President Donald Trump since he returned to office in January, Vermont Gov. Phil Scott’s mid-September executive order to promote much-needed affordable housing in Vermont has raised concerns on the part of Democratic lawmakers and environmental advocates around the local region.

The executive order issued by Scott on Sept. 17 addresses regulatory barriers, permitting requirements and costs, and energy code standards associated with both new and rehabilitated or retrofitted housing projects in the state. Chief among the housing development issues addressed in Scott’s order are providing potential developers with the option of adhering to more relaxed residential energy standards enacted in 2020 as opposed to the latest benchmarks established by the state lawmakers in 2024; relaxation of wetlands regulations and shrinking buffers to 25 feet in designated growth areas such as downtowns and federal “opportunity zones”; directing state agencies to propose fee reductions for multi-family projects targeting medium-income families and allowing fee deferral until project completion; and speeding up the state’s notoriously slow permitting processes, including for Act 250 land-use permits and for appeals before such bodies as the Vermont Superior Court, Environmental Division, commonly known as the Vermont Environmental Court.

Critical reaction to Scott’s September executive order, which the governor deemed to be a vital decree issued in between biennial sessions of the Vermont Senate and House, was muted at first but has gained momentum as state lawmakers prepare to resume deliberations for the second half of the current biennium in Montpelier in January.

“For years, I’ve been sounding the alarm about the housing shortage in Vermont — and despite many agreeing, we haven’t done enough to make a real dent in the number of homes we need in Vermont,” Scott said in a media release that accompanied the executive order on housing last month. “This [order] addresses many of the challenges we’re seeing: [it is intended] to help developers and homebuilders so that we can make a dent in the number of homes we desperately need,” the governor offered.

Vermont House Democrats initially reacted to the executive order by issuing a statement stating, “While the Governor did not communicate with us prior to today’s executive order, we are encouraged to see the Governor join us in recognizing the need for urgent action” The statement also said that party leaders and elected officials would be reviewing the order to make sure it supports “the values of Vermonters,” including the protection of the environment. Despite the somewhat tepid initial response from the Democratic legislators, the question of the legality and constitutionality of Scott’s executive order on housing is now in the hands of the Vermont attorney general’s office, where deliberations are underway about whether Scott overstepped his authority within the state’s tripartite system of governance, which includes the executive branch, the legislature, and the judiciary, much as is true at the federal level.

“We are waiting for a memo from our legislative counsel on this topic,” Windsor State Sen. Becca White of Hartford said in a text message to the Standard last Saturday. “It is understood that the executive order may be unconstitutional by virtue of the separation of power issues that have not yet been detailed. I expect this will be a long situation.”

Windsor County Democratic State Sen. Alison Clarkson, who chairs the Senate Committee on Economic Development, Housing, and General Affairs, also weighed in on Scott’s executive order in a phone conversation with the Standard. 

“I’m very disappointed that he felt he had to do this,” Clarkson said, referencing the governor’s September order. “I am fundamentally disappointed, given how productively we have worked together for the last three years on reducing barriers to housing. It just seems counter to a lot of our productive work together,” she continued. 

Looking ahead to the next legislative session, Clarkson said she expects a robust discussion in Montpelier about the legality of Scott’s executive decree. No matter what transpires, that discussion is likely to help frame the continuing debate about housing issues and priorities during the four-month-long, 2026 legislative confab. “We still have huge issues,” Clarkson stated.

For our full story on this, please see our October 16 edition of the Vermont Standard.