The town of Shelburne is asking Champlain Housing Trust to either apply for a permit or stop using the property at 3164 Shelburne Road as emergency housing for the homeless.
The housing trust opened Harbor Place in the former Econo Lodge in November of 2013.
Shelburne Town Manager and Zoning Enforcement Officer Joe Colangelo notified the housing trust on Sept. 24 that the homeless shelter required a zoning permit to continue operating.
Chris Donnelly, the Champlain Housing Trust Director of Community Relations, says the housing trust disputes the opinion.
He says the shelter is operating as a motel, which is a permitted use for the property.
"Mostly, we're just disappointed that the energy is put into this as opposed to finding a way to help people that are in crisis," Donnely said.
The Housing Trust has until Oct. 15 to respond to the letter.