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State Designation Programs

Late summer, early evening, looking at a downtown with buildings and seating.

The Department of Housing and Community Development manages the state designation programs – Downtowns, Village Centers, New Town Centers, Growth Centers and Neighborhood Development Areas. These programs work together to provide incentives, align policies and give communities the technical assistance needed to encourage new development and redevelopment in our compact, designated areas. The program’s incentives are for both the public and private sector within the designated area, including tax credits for historic building rehabilitations and code improvements, permitting benefits for new housing, funding for transportation-related public improvements and priority consideration for other state grant programs.

Accessibility Notice: Documents on this page required to comply with Federal Accessibility Standards are in the process of being updated. Certain documents are exempt from the regulation. To request an accessible version, please contact Jennifer.lavoie@vermont.gov.

Designation 2050 Reform of Act 181 of 2024: Community Investment Designations

In 2023, Vermont’s General Assembly funded a review of Vermont’s five designation programs. The result was the Designation 2050 Report.  It guided legislative changes enacted by the General Assembly in 2024 in Act 181. The legislative changes make the program more accessible and help coordinate community investment. Act 181 shifts the designation process to a new regional plan approval process, which will transfer all existing legacy designations into the new framework.

This overview of the designation changes (PDF) offers a resource on Vermont’s transition to the new Community Investment Designations under Act 181 of 2024.