Moretown is taking a multi-part approach to address the town’s housing issues. While the town continues to study the possibility of constructing a village wastewater system, town leaders have also started promoting a state grant program that incentivizes property owners to upgrade and build additional rental units.
The Vermont Housing Improvement Program (VHIP) offers grants of up to $50,000 that can be used to add new units to an existing building, do repairs needed to bring vacant rental units up to health code guidelines, or create stand-alone accessory dwelling units. Owners must provide a 20% match and are required to rent units at a fair market rate for at least five years.
ONE UNIT AT A TIME
Two nonprofits, Downstreet Housing and Community Development and the Central Vermont Refugee Action Network, can assist property owners in finding qualified tenants for newly-developed and upgraded units. Downstreet is also the general administrator for these grants in Washington County.
According to the state, the VHIP program is designed to address both the declining quality of rental units and difficulties that homeless assistance programs face in trying to locate suitable housing for their clients. They said that the grants provide “a low-barrier way for Vermont homeowners to help solve the housing crisis one unit at a time.”
As of this year, Moretown’s zoning ordinances better support the construction of additional units and structures. In early March on Town Meeting Day, voters approved changes to ordinances that now allow owners of residential structures to construct one or more housing units that are either part of existing residences or stand-alone accessory dwelling units.
LIMITING FACTORS
But even if property owners face fewer barriers with construction of additional housing, state wastewater regulations may continue to be a limiting factor, as septic systems are permitted to accommodate a certain number of bedrooms per residence. Moretown is continuing to study whether the town can build a municipal wastewater system for the village, which would allow residents to take on the construction of additional units.
Moretown Planning Commissioner Clark Amadon said, “If we can build a water system with more capacity, theoretically we should be able to add some extra housing.”
Last week, Moretown dug several test pits in the ongoing search for a site that could host the wastewater system – sites located in the Moretown town forest off South Hill Road, behind Moretown Elementary School, and at Pony Hill Farm. Amadon said that while the town is looking for a large site with well-draining soil, the soils tested at these sites showed disappointing results.
The town will soon discuss plans for moving forward with Middlebury-based Otter Creek Engineering – whether that means constructing smaller systems on one or two of the tested sites, or identifying other sites. Amadon said that the town’s current feasibility study, including contracted engineering work, is funded through a zero-interest loan from the state. He said that the town has spent about $92,000.
LACKING INFRASTRUCTURE
The cost of planning, engineering, and building a portion of the wastewater system would be covered with a $3.35 million grant that Moretown received from the state’s Village Water and Wastewater Initiative. The program is designed to help municipalities develop new wastewater disposal systems and public drinking water systems where infrastructure is lacking.
According to a press release from the state, this funding will “bridge the affordability gap, protect public health, increase affordable housing, support economic development, and incentivize compact growth in Vermont’s designated villages and neighborhoods.”
Amadon said that while these grants were initially offered as funding to mitigate ground and surface water contamination, facilitating the construction of affordable housing is “an unintended consequence that’s real.”
The Moretown Planning Commission is putting together a series of public meetings so that people can get more information about the wastewater project. Commissioners are hoping to host the first forum on the day before Town Meeting.
