House approves bill to let towns pursue unfinished developer work and raises home‑guarantee cap to $50,000

The House approved legislation on April 25 that aims to strengthen municipal enforcement against developers who fail to complete required site work and to increase the maximum recovery available from the New Home Construction Guarantee Fund.

Representative Calvarys DuGraw (bill proponent) said the bill empowers local zoning and inland‑wetlands officials to pursue developers in circumstances where work is incomplete, the project approval has not expired and the unfinished work creates a public‑health or safety hazard. The measure also raises the limit that homeowners can recover from the guarantee fund from $30,000 to $50,000, a figure proponents said has not been updated in more than 20 years.

Why it matters: supporters described the bill as a consumer‑protection and subcontractor‑protection tool targeted at “bad actors” who take deposits or fail to finish public improvements. Representative Zullo called the bill “a remedy of last resort for towns,” saying the measure is aimed at cases where contractors or developers have abandoned obligations for months or years.

Debate and questions: sponsors explained the bill contains criteria that towns must meet before using the remedy (for example, approvals cannot have expired and the suspension of work must be of a duration that reasonably indicates the developer will not return). Members discussed the genesis of the measure and noted past local cases where incomplete work left public infrastructure unfinished and subcontractors unpaid.

Vote and outcome: As announced by the clerk, House Bill 6,963 as amended recorded 144 yeas, 0 nays, and 7 not voting; the bill passed as amended.

Ending: Sponsors said the bill provides towns with an additional enforcement tool while increasing homeowner protections under the guarantee fund. Implementation will depend on town procedures and any administrative guidance needed to apply the new criteria.