Municipalities may own land they can donate or sell at low cost for housing development.  

Land banks are government-created nonprofit corporations designed to convert tax-delinquent and abandoned properties or land donations into affordable housing or other community uses.

Vacant and abandoned properties are not only missed housing opportunities, but also can harm the surrounding neighborhood. Municipalities can enact vacant property registration ordinances that require individuals to register vacant land. Owners may be required to pay fees for vacant properties, which may be increased the longer it remains vacant, incentivizing owners to redevelop. Concept can overlap with land value taxation. 

The state of Vermont allows municipalities to “designate” specific geographic areas of their community as centers of economic importance. The five designations each offer a range of tools and incentives for towns to shape development or revitalization in the specified area. The available designations are Village Centers, Downtowns, New Town Centers, Neighborhood Development Areas, and Growth Centers.

Allows testimony from hearings before a municipality’s planning commission, zoning board, or development review board to be incorporated into appeals heard by a Vermont court. This prevents municipalities and plaintiffs from having to reproduce expert testimony at every stage of an appeal, potentially saving significant time and expense. Municipalities have the option to implement this approach into local law under Vermont statue 24 V.S.A. § 4471(b).

Promote and enforce safe and healthy living conditions for rental properties. Vermont has some rental housing laws, but municipalities may supplement those laws with municipal rental housing codes.

Housing trust funds (HTF) can support construction or rehabilitation of owner or renter homes, including creating Accessory Dwelling Units. HTFs can be used to encourage young families to move in and renovate homes through grants, low-interest loans, or loan forgiveness over time.  Communities may work with state, regional, and county housing trust funds, or may choose to develop a local housing trust fund. Funding sources for HTFs include local options taxes, a percentage of property tax revenue, fund balances, bond proceeds, general fund appropriations, and dedicated fees.