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 use of the property for those purposes. Specifically, it amends 27 V.S.A. § 545 to declare that any deed restrictions or covenants added after July 1, 2025, on commercial or industrial properties will not be valid if they restrict the property's use for commercial or industrial activities. Additionally, the bill clarifies that existing property interests held by qualified organizations or state agencies, including conservation easements and housing subsidy covenants, will remain enforceable despite these new provisions.

The bill also includes a provision that it will take effect on July 1, 2025. This legislative change is intended to enhance the usability of commercial and industrial properties by eliminating restrictive covenants that could hinder their development and use, thereby promoting economic growth in Vermont.

Statutes affected:
As Introduced: 27-545