An act relating to escrow deposit bonds

This bill allows housing developers in Vermont to use future resident deposits to fund construction costs, provided they secure those deposits with escrow deposit bonds. The law requires developers to place buyer deposits in escrow accounts managed by licensed brokers, attorneys, or insured banks, but permits exceptions when a surety bond is obtained to cover the withdrawn funds. The bond must be issued by an authorized Vermont surety company and guarantee the return of deposits if the developer fails to deliver units as promised. Funds released under this provision can only be used for actual building and construction expenses of the specific project. The changes take effect on July 1, 2024.