House advances overhaul of rental rules, shortens some eviction timelines and creates rent‑payment pilot

Representative Krasnow (Member from South Burlington) presented H.772 as a compromise intended to balance tenant protections and landlord needs, describing it as grounded in “stability, dignity, and fairness” for renters while giving landlords clearer tools to address dangerous conduct.

The bill, as explained by Krasnow, would: require longer notice (90 days) in many no‑cause terminations; cap security deposits at two months’ rent (with pet deposits allowed); require that 50% of a tenant’s security deposit be returned 45 days before lease termination; limit rent increases to once every 12 months while allowing a purchaser to raise rent after acquisition; create an expedited court path for cases where a tenant’s ongoing conduct threatens others’ health or safety; require courts to set hearings within defined timeframes; and authorize a positive rental‑payment credit reporting pilot in the treasurer’s office to help tenants build credit from on‑time rent payments.

Sponsors stressed protections added for tenants, including a new rule that an existing serious, unresolved health or safety code violation issued before an eviction will lead to judgment for the tenant in a nonpayment action, and provisions limiting some landlord discretion by requiring affidavits and judicial review when immediate possession is sought.

Opponents warned the bill expands eviction grounds and shortens timelines in ways that could limit tenants’ ability to respond, seek assistance, or retain counsel. One member said the measure “tilts the balance of power decisively in one direction,” arguing the shorter timelines and new affidavit requirements could increase default judgments against tenants and raise upfront moving costs where two‑month deposit caps exceed some municipal limits.

During floor exchanges, lawmakers pressed sponsors on several points: whether the bill narrows or broadens grounds for eviction (sponsors said it clarifies and in some respects narrows by defining repeated late payments and limiting immediate filing), court capacity and timing (the judiciary committee amended timing in response to court concerns), the effect of a statewide two‑month deposit cap on municipalities with stricter local rules (members were reminded that charter provisions can prevail), and whether charging applicants for credit/background checks would shift costs to renters (the bill permits landlords to charge only the landlord’s actual cost for such checks and requires landlords to accept a tenant‑provided credit check less than 90 days old).

Floor amendments from the judiciary committee and others changed language on alternate service of process, hearing timelines (moving some deadlines from 60 to 90 days in places), affidavit and default judgment timing, and struck an earlier confidentiality provision for ejectment records after courts raised serious resource concerns.

After extended debate and a roll‑call on the committee amendment, the House recorded 120 votes in favor and 21 against when amending the report of the committee on general and housing as amended; third reading was ordered.

The bill’s fiscal and implementation details include a pilot positive rental payment credit program to be administered by the treasurer’s office and statutory effective dates set in the bill; several sections were described as contingent on appropriations or otherwise revised by committee actions. The House proceedings closed without final enactment; the bill was advanced to third reading and will return to the calendar for final passage consideration.

Ending: The House ordered third reading of H.772 after the amendments; sponsors said the measure aims to prevent homelessness through prevention dollars and clearer processes, while opponents warned of potential harms without stronger tenant representation or additional court resources.