The bill H.607, introduced by Representative Krasnow, aims to regulate the activities of institutional real estate investors in Vermont by imposing a 90-day waiting period before they can purchase single- and two-family residences. Specifically, the bill stipulates that these investors, defined as entities owning or managing a significant number of residential properties, must wait until a property has been listed for sale to the general public for at least 90 days before making a purchase. Additionally, if the asking price of the property changes, the waiting period resets, requiring another 90 days before a purchase can occur. The bill also includes provisions for enforcement, categorizing violations as unfair competition.

Furthermore, the bill seeks to eliminate tax deductions for depreciation and interest related to properties owned by institutional real estate investors. It amends existing tax laws to ensure that these investors cannot deduct depreciation or interest expenses when calculating their Vermont net income. The effective date for the 90-day waiting period is set for July 1, 2026, while the changes regarding tax deductions will be retroactively applied starting January 1, 2026. This legislation is designed to address concerns about the impact of institutional investors on the housing market and to promote fair access to homeownership for individuals and families.

Statutes affected:
As Introduced: 32-5811(18), 32-5811, 32-5811(21)