Burlington Council Approves Zoning Changes, Enables 150 New Housing Units

The Burlington City Council voted 8-3 on July 8 to amend zoning rules in the Old North End, Downtown and South End districts. The changes permit buildings up to five stories on lots previously limited to three stories when at least 20 percent of units meet income targets set by the Vermont Housing Finance Agency.

Housing production has lagged population growth in Chittenden County since 2020, with only 1,200 new units permitted across the county in the past five years according to permit data released by the Vermont Department of Housing and Community Development. City staff presented the ordinance as one step to address that shortfall without new public spending.

Local Experts and Advocates Respond

Policy analysts at the University of Vermont's Center for Rural Studies noted the changes align with similar updates already adopted in Winooski and South Burlington. Local advocates from the Champlain Valley Office of Economic Opportunity said the measure could reduce wait times for income-qualified renters by expanding the number of units subject to local rent caps. Property owners at the meeting raised concerns about increased construction costs on smaller parcels.

For a household earning 60 percent of area median income, roughly $58,000 for a family of three in 2025 figures, the new rules could open units priced below market rates in buildings that previously would have been blocked by height limits. The ordinance also requires ground-floor commercial space in new projects over 10,000 square feet along main corridors.

Next Steps and Budget Context

The measure now moves to the city clerk for recording and takes effect 30 days after publication. City officials said the first projects using the updated standards are expected to reach the Development Review Board by early 2027. The changes do not alter the city's $12.8 million annual allocation to the housing trust fund, which remains the primary source of gap financing for affordable projects.

Residents can review the full text of the ordinance and the accompanying staff report on the city's website. Public hearings on implementation guidelines are scheduled for September.