An act relating to residential rental agreements, eviction procedures, and the creation of the positive rental payment credit reporting pilot program

Nonpayment of rent notice period changed from 7 days (as introduced) to 10 days. Criminal activity/violence termination notice changed from 3 days to 5 days.

No-cause termination notice for tenants with 2 years or less under a written agreement increased from 30 days to 90 days before lease expiration. No-cause without written agreement simplified to a flat 90 days regardless of tenure. Week-to-week written agreement notice increased from 7 to 10 days.

Termination when property is sold or repurposed now requires 90 days notice (up from 30) and adds a requirement for 90 days before expiration of written agreements. The 'good faith intention' language for family occupancy was replaced with 'necessary for' occupancy.

Grounds for termination for breach of rental agreement were narrowed. Removed: refusal to sign a renewal or accept reasonable changes, and interference with health and safety of others. Added specific standard: late payment more than 3 times in a 12-month period (defined as more than 10 days after rent is due).

Ejectment action commencement deadline simplified from a two-tier system (30 days for nonpayment/breach, 60 days for others) to a flat 60 days for all terminations.

Application fee definition narrowed to exclude background checks from the prohibited fee. Landlords may now charge actual costs (not just nominal fees) for background or credit checks, but must provide a copy of results to the applicant. A 'current credit report' is defined as one dated within 90 days.

New retaliatory conduct presumption: if a landlord serves termination notice on any grounds other than nonpayment within 90 days after a municipal or state entity notifies that premises are not in compliance with health or safety regulations, there is a rebuttable presumption the termination is retaliatory.

Notice of termination must now include the reason for termination (previously only required the termination date).

The CPI-based rent increase cap (section 4468b limiting increases to 3 percentage points above the U.S. Consumer Price Index Housing Component) was removed entirely. Rent increases are now governed by section 4455 with only a 60-day notice requirement and once-per-12-months limit, plus an exception for purchase of a dwelling unit.

New penalty for failure to return security deposit: landlord forfeits right to withhold any portion if not returned within the required timeframe. If the failure is willful, landlord is liable for double the amount wrongfully withheld plus reasonable attorney's fees and costs.

New section 4472a creates a right to bifurcate a rental agreement, allowing a protected tenant (victim of domestic abuse, sexual assault, or stalking) to have the abuser removed from the lease without losing their own tenancy. Landlord must give at least 90 days for the protected tenant to find replacement tenants or new housing if they cannot cover rent alone.

New prohibition on terminating a rental agreement because a tenant is seeking medical assistance for a drug overdose, is the subject of a good faith request for medical assistance, or is at the scene of an overdose. Evidence from a good faith 911 call for overdose assistance cannot be used in an ejectment action.

New prohibition on terminating a rental agreement because the tenant is a victim of domestic abuse, sexual assault, or stalking. A landlord may only terminate the abuser if the act poses an actual and imminent threat and no other action would reduce the threat.

New provision allowing landlords to charge a separate security deposit for pets, but explicitly prohibiting such charges for animals that mitigate a disability (service animals).

Definition of 'immediate family' changed from 'related by blood, adoption, marriage, or as defined in similar law in another jurisdiction' to specifically 'related by blood, adoption, civil marriage, or civil union.' New definitions added for 'actual and imminent threat,' 'domestic abuse,' 'sexual assault,' and 'stalking.'

Notice presumption period extended from 3 days to 5 days after mailing. New notice methods added: email to address in lease (with mailed copy) and posting to door if last address is unknown.

The tenant's affirmative defense to eviction based on code violations was significantly narrowed. Now requires that the violation was actually issued to the landlord under 20 V.S.A. section 2677 AND that the landlord made no reasonable attempt to correct it as of the termination date (previously any serious health and safety condition qualified).

Security deposit return: added 60-day timeframe for seasonal occupancy and rentals not intended as primary residence. Added requirement that if landlord terminates under domestic abuse provisions at tenant's request, half the security deposit must be returned at least 45 days before the termination date.