Bylaw Modernization Grants

Special funding to update bylaws, implement Zoning for Great Neighborhoods and expand choice and opportunity for homes in pedestrian-oriented neighborhoods.

In fiscal year 2022 (July 1, 2021– June 30, 2022), the Vermont Department of Housing and Community Development (DHCD) has $500,000 available to grant to municipalities for land use, development, and zoning bylaw updates in support of pedestrian-oriented development patterns that increase housing choice and affordability within smart growth areas, and in accordance with Vermont’s smart growth principles (24 V.S.A. §2791). 

This one-time funding from Act 74 (2021) is intended to help communities confront the State’s housing shortage and ready areas for new homes through bylaw modernization. 

A municipality may apply for Bylaw Modernization Grant funding in addition to a recent or FY22 Municipal Planning Grant.

Program Description

Information about eligibility, funding, and competitive criteria can be found in the program description.


Applciation materials will be posted here on or before October 1, 2021.

Administering an Awarded Grant

Resources for grantees -- including important dates, requisition, amendment, and closeout instructions -- will be available on the Grant Administrator's Page prior to awards in January.  Much of the program's administration will resemble the Municipal Planning Grant Administrators Page.

Visit for more inspiration and information on living, working and doing business in Vermont.