Explore Act 181
Tier-Based Review System
Land Use Categories in Act 181 and on the Future Land Use Map are meant to guide growth into areas where it makes the most sense. Tiers 1a and 1b offer financial and other incentives (see below), and affect Act 250 requirements. Tiers 2 and 3 mainly follow the existing Act 250 process.
- Tier Tier 1A Downtowns, Village Centers, and Planned Growth Areas are the primary places to develop new housing and businesses.
- Tier 1B Village Areas allow for smaller-scale growth connected to these core areas.
- Tier 2 Transition/Infill, Enterprise, Recreation, focus those kinds of development in specific areas. Hamlets are also Tier 2.
- Tier 3 Rural and Conservation areas will focus on protecting important natural resources like wildlife connectors and large forest blocks, as well as the working landscape.
Land Use Categories
- Downtown Centers: Mixed-use core with homes, homes, civic spaces and services.
- Village Centers: Smaller, walkable areas with local services and homes clustered together – think village main streets
- Planned Growth Areas: Places with strong development potential which are typically already dense, with homes, jobs, and services nearby
- Village Areas: Areas around Village Centers planned for growth but with fewer services or infrastructure; often quieter than centers
- Transition (Infill) Areas: Existing commercial, mixed-use, or residential zones adjacent to growth centers planned for gradual development or infill
- Enterprise Areas: Areas designated for business or light industrial uses including manufacturing
- Resource-Based Recreation Areas: Regions centered around recreational resources like lakes, ski resorts, or trail networks where outdoor activity is key
- Hamlets: Small, rural clusters of homes, with limited services
- Rural – General: Mostly residential or undeveloped land outside villages or centers
- Rural – Agriculture & Forestry: Land primarily used for farming or forestry, or other working landscapes
- Rural – Conservation: Land set aside to protect natural resources
Tier 1A and 1B Incentives
Tiers 1A and 1B are tied to certain kinds of opportunities and incentives.
- Less red tape: Some projects can qualify for Act 250 exemptions or streamlined review, which means new housing and businesses face fewer permitting hurdles.
- Financial incentives: Property owners and developers can access state tax credits (including Tax Increment Financing – TIFF, and Community Housing Improvement Program – CHIP) as well as assistance to restore historic buildings, improve safety codes, or update facades. These areas also get priority for state grants to improve sidewalks, lighting, and other public spaces.
- Support for local improvements: Towns can tap into funding and technical assistance to upgrade infrastructure like water, sewer, and stormwater systems. These kinds of investments make development easier.
- Prevent Sprawl: The goal of Act 181 was to make it easier to build needed housing while protecting Vermont from scattered development.
The Tier system will not replace local zoning regulations. To qualify for Tier 1A or 1B, a town must show it has the staff and systems in place to enforce its local regulations.