BILL AS INTRODUCED H.306
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VT LEG #380258 v.1
H.306 1
Introduced by Representatives Graning of Jericho, Bosch of Clarendon, Boutin 2
of Barre City, Carris-Duncan of Whitingham, Cooper of 3
Pownal, Duke of Burlington, Marcotte of Coventry, Micklus of 4
Milton, and Olson of Starksboro 5
Referred to Committee on 6
Date: 7
Subject: Property; deed restrictions and covenants 8
Statement of purpose of bill as introduced: This bill proposes to prohibit deed 9
restrictions or covenants on property zoned for commercial or industrial uses if 10
the restriction or covenant prohibits or has the effect of prohibiting use of the 11
property for commercial or industrial purposes. 12
An act relating to prohibiting deed restrictions or covenants that prohibit use 13
of property for commercial or industrial purposes 14
It is hereby enacted by the General Assembly of the State of Vermont: 15
Sec. 1. 27 V.S.A. § 545 is amended to read: 16
§ 545. COVENANTS, CONDITIONS, AND RESTRICTIONS OF 17
SUBSTANTIAL PUBLIC INTEREST 18 BILL AS INTRODUCED H.306
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(a) Deed restrictions, covenants, or similar binding agreements added after 1
March 1, 2021 that prohibit or have the effect of prohibiting land development 2
allowed under 24 V.S.A. § 4412(1)(E) and (2)(A) shall not be valid. 3
(b) Deed restrictions or covenants added after July 1, 2023 shall not be 4
valid if they require a minimum dwelling unit size on the property or more 5
than one parking space per dwelling unit if the property is located in an area 6
served by municipal sewer and water infrastructure as defined in 24 V.S.A. 7
§ 4303 that allows residential uses or more than 1.5 parking spaces for 8
duplexes and multiunit dwellings in areas not served by sewer and water and in 9
areas that are located more than one-quarter mile away from public parking 10
rounded up to the nearest whole number when calculating the total number of 11
spaces. 12
(c) Deed restrictions or covenants added after July 1, 2025 on property 13
zoned for commercial or industrial uses shall not be valid if they prohibit or 14
have the effect of prohibiting use of the property for commercial or industrial 15
purposes. 16
(d) This section shall not affect the enforceability of any property interest 17
held in whole or in part by a qualified organization or State agency as defined 18
in 10 V.S.A. § 6301a, including any restrictive easements, such as 19
conservation easements and historic preservation rights and interests defined in 20
10 V.S.A. § 822. This section shall not affect the enforceability of any 21 BILL AS INTRODUCED H.306
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VT LEG #380258 v.1
property interest that is restricted by a housing subsidy covenant as defined by 1
section 610 of this title and held in whole or in part by an eligible applicant as 2
defined in 10 V.S.A. § 303(4) or the Vermont Housing Finance Agency. 3
Sec. 2. EFFECTIVE DATE 4
This act shall take effect on July 1, 2025. 5