| 1 | 1 | | BILL AS INTRODUCED H.306 |
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| 2 | 2 | | 2025 Page 1 of 3 |
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| 4 | 4 | | |
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| 5 | 5 | | VT LEG #380258 v.1 |
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| 6 | 6 | | H.306 1 |
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| 7 | 7 | | Introduced by Representatives Graning of Jericho, Bosch of Clarendon, Boutin 2 |
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| 8 | 8 | | of Barre City, Carris-Duncan of Whitingham, Cooper of 3 |
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| 9 | 9 | | Pownal, Duke of Burlington, Marcotte of Coventry, Micklus of 4 |
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| 10 | 10 | | Milton, and Olson of Starksboro 5 |
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| 11 | 11 | | Referred to Committee on 6 |
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| 12 | 12 | | Date: 7 |
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| 13 | 13 | | Subject: Property; deed restrictions and covenants 8 |
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| 14 | 14 | | Statement of purpose of bill as introduced: This bill proposes to prohibit deed 9 |
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| 15 | 15 | | restrictions or covenants on property zoned for commercial or industrial uses if 10 |
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| 16 | 16 | | the restriction or covenant prohibits or has the effect of prohibiting use of the 11 |
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| 17 | 17 | | property for commercial or industrial purposes. 12 |
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| 18 | 18 | | An act relating to prohibiting deed restrictions or covenants that prohibit use 13 |
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| 19 | 19 | | of property for commercial or industrial purposes 14 |
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| 20 | 20 | | It is hereby enacted by the General Assembly of the State of Vermont: 15 |
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| 21 | 21 | | Sec. 1. 27 V.S.A. § 545 is amended to read: 16 |
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| 22 | 22 | | § 545. COVENANTS, CONDITIONS, AND RESTRICTIONS OF 17 |
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| 23 | 23 | | SUBSTANTIAL PUBLIC INTEREST 18 BILL AS INTRODUCED H.306 |
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| 24 | 24 | | 2025 Page 2 of 3 |
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| 25 | 25 | | |
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| 26 | 26 | | |
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| 27 | 27 | | VT LEG #380258 v.1 |
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| 28 | 28 | | (a) Deed restrictions, covenants, or similar binding agreements added after 1 |
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| 29 | 29 | | March 1, 2021 that prohibit or have the effect of prohibiting land development 2 |
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| 30 | 30 | | allowed under 24 V.S.A. § 4412(1)(E) and (2)(A) shall not be valid. 3 |
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| 31 | 31 | | (b) Deed restrictions or covenants added after July 1, 2023 shall not be 4 |
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| 32 | 32 | | valid if they require a minimum dwelling unit size on the property or more 5 |
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| 33 | 33 | | than one parking space per dwelling unit if the property is located in an area 6 |
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| 34 | 34 | | served by municipal sewer and water infrastructure as defined in 24 V.S.A. 7 |
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| 35 | 35 | | § 4303 that allows residential uses or more than 1.5 parking spaces for 8 |
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| 36 | 36 | | duplexes and multiunit dwellings in areas not served by sewer and water and in 9 |
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| 37 | 37 | | areas that are located more than one-quarter mile away from public parking 10 |
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| 38 | 38 | | rounded up to the nearest whole number when calculating the total number of 11 |
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| 39 | 39 | | spaces. 12 |
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| 40 | 40 | | (c) Deed restrictions or covenants added after July 1, 2025 on property 13 |
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| 41 | 41 | | zoned for commercial or industrial uses shall not be valid if they prohibit or 14 |
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| 42 | 42 | | have the effect of prohibiting use of the property for commercial or industrial 15 |
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| 43 | 43 | | purposes. 16 |
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| 44 | 44 | | (d) This section shall not affect the enforceability of any property interest 17 |
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| 45 | 45 | | held in whole or in part by a qualified organization or State agency as defined 18 |
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| 46 | 46 | | in 10 V.S.A. § 6301a, including any restrictive easements, such as 19 |
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| 47 | 47 | | conservation easements and historic preservation rights and interests defined in 20 |
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| 48 | 48 | | 10 V.S.A. § 822. This section shall not affect the enforceability of any 21 BILL AS INTRODUCED H.306 |
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| 49 | 49 | | 2025 Page 3 of 3 |
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| 51 | 51 | | |
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| 52 | 52 | | VT LEG #380258 v.1 |
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| 53 | 53 | | property interest that is restricted by a housing subsidy covenant as defined by 1 |
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| 54 | 54 | | section 610 of this title and held in whole or in part by an eligible applicant as 2 |
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| 55 | 55 | | defined in 10 V.S.A. § 303(4) or the Vermont Housing Finance Agency. 3 |
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| 56 | 56 | | Sec. 2. EFFECTIVE DATE 4 |
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| 57 | 57 | | This act shall take effect on July 1, 2025. 5 |
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