Vermont Auditor of Accounts Doug Hoffer is urging caution as the state rolls out its ambitious new housing construction push. In his latest legislative session reflections, Hoffer outlines why Vermont’s new Community Housing and Infrastructure Program (CHIP) must be carefully watched to avoid wasteful spending, even as the state works to tackle its housing crisis.

Hoffer, who began his career in 1988 at Burlington’s Community and Economic Development Office, says Vermont has long been a testing ground for affordable housing strategies, citing innovations like the Housing & Conservation Trust, Burlington’s inclusionary zoning, and the land trust model behind the Champlain Housing Trust.

“For decades I’ve advocated for state government to help increase the stock and particularly the affordability of housing units. Now is no different,” Hoffer wrote.

Yet he warns that CHIP, the year’s biggest housing measure, carries real financial risks for taxpayers. While its goal is to boost infrastructure in smaller towns to support new housing, CHIP uses a modified tax increment financing (TIF) model that Hoffer argues could:

• Shift resources from rural towns to wealthier ones,
• Drain Vermont’s Education Fund,
• Subsidize developers unnecessarily,
• And cost more than using existing infrastructure programs.

“It defies logic,” he said of policies that could let luxury homes benefit from taxpayer help meant for affordable housing.

CHIP was approved, but some Auditor’s Office recommendations made it into the final version. For example, the law now requires at least 15% of units to be affordable — though only for about 20 years — and stops funds from being used to build second homes or short-term rentals. It also blocks diverting Education Fund tax dollars from unrelated properties.

“It is not too late for the Scott Administration to implement the program in a way that further reduces the potential for wasteful spending,” Hoffer said. He urged Gov. Phil Scott to adopt stricter rules, including a scoring system that favors more housing and more affordability, discounts unrealistic property value assumptions, and shifts oversight away from Vermont’s Agency of Commerce and Community Development (ACCD), which promotes the same projects it’s supposed to regulate.

“My office will remain vigilant to make sure your tax dollars are not wasted in that pursuit,” he said.

Why CHIP Matters

‍The Community Housing and Infrastructure Program represents one of Vermont’s biggest pushes yet to solve its housing crunch, especially for rural towns that can’t afford the infrastructure needed for new homes. Supporters say the program will unlock new supply where it’s needed most — but only if the public money flows to genuine housing, not luxury developments or second homes.

Tax Increment Financing Under Scrutiny

‍Vermont’s approach relies on tax increment financing (TIF) — a tool that diverts future property tax growth to pay for today’s infrastructure. TIFs can help spark development, but as Hoffer points out, they can also siphon money away from local schools if poorly designed.

Calls for More Oversight

‍Hoffer’s suggestion to split up promotion and enforcement duties echoes good governance practices: the same agency shouldn’t promote a program while policing its compliance. Some lawmakers may revisit this point in 2026 when the Legislature could adjust the program’s structure.

Bigger Picture

‍Vermont’s housing shortage mirrors trends across New England — where high construction costs, limited land, aging workforces, and strict local rules all constrain supply. Many in the building industry back CHIP as a needed boost. But watchdogs like Hoffer want clearer guardrails to ensure that the drive for new homes doesn’t lead to taxpayer-funded boondoggles.

Originally reported by Vermont Auditor of Accounts Doug Hoffer in Vermont Biz.