Protection of Tenants in Conversion of Rental Units

V.S.A. tit. 27, ch. 15, subch. 2

in effect

27 V.S.A. § 1331 Definitions

1331. Definitions As used in this subchapter: (1) “Comparable housing” means housing that is decent, safe, sanitary, and in compliance with all local and State housing codes, and provided with facilities equivalent to those provided by the landlord in the dwelling unit in which the tenant then resides in regard to each of the following: apartment size, rent range, major kitchen and bathroom facilities, special facilities necessary for persons with disabilities or who have an infirmity, and desirability of neighborhood, school facilities, or area. (2) “Conversion” means a change in character of residential real property from a rental to an ownership basis. A common interest community, stock cooperative, or similar arrangement shall be deemed such a change in character of ownership. (3) “Declarant” means any person who offers for transfer ownership interests in a common interest community as part of an initial common promotional plan. (4) “Tenant who is an elder” means a tenant who is 62 years of age or older. (5) “Tenant with a disability” means a tenant who has a physical or mental impairment that restricts one or more major life activities, including functions such as caring for one’s self, performing manual tasks, walking, seeing, hearing, speaking, breathing, learning, or working. (6) “Low-income tenant household” means a household having an income not exceeding 80 percent of median income for area of residence as set forth in regulations promulgated from time-to-time by the Department of Housing and Urban Development pursuant to 42 U.S.C. § 1437 et seq. Added 1985, No. 175 (Adj. Sess.), § 5; amended 1997, No. 104 (Adj. Sess.), § 1, eff. Jan. 1, 1999; 2013, No. 96 (Adj. Sess.), § 185.

27 V.S.A. § 1332 Applicability

1332. Applicability This subchapter shall apply to the conversion of all residential rental property in the state other than a manufactured home park, except the conversion of any single-family dwelling unit that is individually owned but has been rented. Conversion of a manufactured home park shall be subject to subchapter 3 of this chapter. Added 1985, No. 175 (Adj. Sess.), § 5; amended 1993, No. 97, § 3.

27 V.S.A. § 1333 Conversion building; notice to tenants

1333. Conversion building; notice to tenants (a) If the building to be converted consists of more than five dwelling units or if the building to be converted is part of an apartment complex or is one building in a group of buildings that are contiguous or that share common areas, the landlord shall give to each tenant the following minimum written notice to vacate or purchase the unit: two years to tenants who are elders or have a disability; one year to low-income tenant households; six months to all other tenants. (b) If the building to be converted consists of five or fewer dwelling units, the landlord shall give to each tenant the following minimum written notice to vacate or purchase the unit: one year to tenants who are elders or have a disability; six months to low-income tenant households; three months to all other tenants. A landlord may not circumvent the longer notice requirements by converting a building consisting of five or fewer dwelling units if the conversion is part of a plan to convert more than five dwelling units. (c) The notice shall state that the building is to be converted to a common interest community. It shall set forth generally the rights of tenants under this subchapter, and shall be given by certified mail, return receipt requested, at the address of the unit or any other mailing address provided by the tenant. Failure to give notice as required by this section is a defense to an action for possession. (d) During the notice period, a tenant may not be required to vacate except for a reason specified in 9 V.S.A. § 4467(a) or (b). (e) During the notice period, rent increases shall be limited to an amount which reflects reasonable profits, actual increased costs of maintenance and operation of the dwelling unit subject to conversion. Costs associated with the proposed conversion are not a permissible basis for a rent increase. (f) After receipt of the notice prescribed in subsection (a) of this section, a tenant may terminate the rental agreement upon 30 days’ written notice to the landlord. (g) Nothing in this section permits termination of a written lease by a landlord in violation of its terms. (h) The notice requirements imposed by this section shall not affect the right of a declarant to transfer ownership interests in dwelling units that are not subject to those requirements or as to which the notice period has expired. Added 1985, No. 175 (Adj. Sess.), § 5; amended 1997, No. 104 (Adj. Sess.), § 2, eff. Jan. 1, 1999; 2013, No. 96 (Adj. Sess.), § 186.

27 V.S.A. § 1334 Exclusive right to purchase

1334. Exclusive right to purchase (a) For 90 days after giving the notice described in section 1333 of this title, the declarant shall offer to convey each unit or proposed unit occupied for residential use to the tenant who rents that unit. The tenant shall be given all documents provided to the general public or to other tenants as part of the offering for sale of the unit. If a tenant fails to contract for the unit during the offer period, the declarant may not offer an interest in that unit during the following 90 days at a price or on terms more favorable to the offeree than the price or terms offered to the tenant. (b) If a declarant conveys a unit in violation of section 1333 to a purchaser for value who has no knowledge of the violation, recordation of the deed conveying the unit extinguishes any right a tenant may have to purchase the unit, but does not affect the right of a tenant to recover damages from the declarant. (c) This section shall not apply to any unit in a conversion building if that unit will be restricted exclusively to nonresidential use or the boundaries of the converted unit do not substantially conform to the dimensions of the residential unit before conversion. Added 1985, No. 175 (Adj. Sess.), § 5.

27 V.S.A. § 1335 Comparable housing

1335. Comparable housing The declarant may offer a tenant assistance in locating comparable housing. If, as a result, the tenant obtains comparable housing, the tenant may be required upon 90 days’ notice to vacate the premises. Added 1985, No. 175 (Adj. Sess.), § 5.

27 V.S.A. § 1336 Relocation costs

1336. Relocation costs (a) The declarant shall pay the actual documented cost of relocation, not to exceed $1,000.00, to any tenant entitled to receive notice under section 1333 of this title who does not purchase the unit that he or she occupies or another unit in the same building or buildings. (b) Relocation costs shall be payable within 10 days after the date the tenant vacates the unit; provided, however, that no tenant is eligible for relocation costs unless: (1) all rent due and payable has been paid by the tenant prior to the date on which the unit is vacated; and (2) the tenant has voluntarily vacated the unit on or before the expiration of half the applicable notice period. Added 1985, No. 175 (Adj. Sess.), § 5.

27 V.S.A. § 1337 Waiver prohibited

1337. Waiver prohibited No lease or rental agreement, oral or written, shall contain any provision by which the tenant prospectively waives any of his or her rights under this subchapter. Any such waiver shall be deemed contrary to public policy and shall be unenforceable and void. Added 1985, No. 175 (Adj. Sess.), § 5.

27 V.S.A. § 1338 Circumvention of this subchapter

1338. Circumvention of this subchapter A declarant shall not attempt to circumvent the provisions of this subchapter; nor shall any person willfully cause a tenant to vacate a dwelling unit or to be evicted from the unit without good cause in contemplation of conversion before the issuance of the notice prescribed in section 1333 of this title. Added 1985, No. 175 (Adj. Sess.), § 5.

27 V.S.A. § 1339 Violations

1339. Violations A violation of this subchapter is deemed to be a violation of 9 V.S.A. § 2453, and is subject to all rights, obligations, and penalties provided under 9 V.S.A. chapter 63. Added 1985, No. 175 (Adj. Sess.), § 5.

Source: Vermont General Assembly (legislature.vermont.gov)URL: https://legislature.vermont.gov/statutes/chapter/27/015Fetched: 10/21/2026