The bill H.306 aims to prohibit deed restrictions or covenants on properties zoned for commercial or industrial uses if such restrictions prevent or effectively prevent the property from being used for its intended commercial or industrial purposes. Specifically, it amends 27 V.S.A. § 545 to declare that any deed restrictions or covenants added after July 1, 2025, on these types of properties will not be valid if they impose such prohibitions. Additionally, the bill clarifies that this prohibition does not affect the enforceability of property interests held by qualified organizations or state agencies, including conservation easements and housing subsidy covenants.

Furthermore, the bill introduces a new effective date for these provisions, stating that they will take effect on July 1, 2025. This legislative change is intended to promote the use of commercial and industrial properties without the hindrance of restrictive covenants that could limit their development and utility.

Statutes affected:
As Introduced: 27-545