Vermont committee opens hearings on H.607 to curb institutional purchases of single‑family homes

The House Committee on General and Housing opened hearings Thursday on H.607, a bill that would limit when institutional real‑estate investors can buy single‑ and two‑family homes and change tax rules for such entities.

Cameron Wood of the Office of Legislative Council walked legislators through the bill’s text, saying it would add a new section to Title 27 that defines a "covered entity" and prohibits covered entities from acquiring an interest in a single‑ or two‑family residence unless the property has been listed to the general public for at least 90 days. Wood said a change in the seller’s asking price restarts the 90‑day period and that violating the rule would be treated as an unfair method of competition under the state Consumer Protection Act.

The bill sets three criteria for an entity to be treated as an "institutional real‑estate investor": ownership of 10 or more single‑ or two‑family residences (directly or indirectly, with at least a 10% interest counting toward that total); managing or receiving investor funds and acting as a fiduciary for those investors; and having at least $30 million in net assets under management. Wood said all three conditions must be met for the entity to fall under the statute. Nonprofits (501(c)(3) organizations), land banks, community land trusts and creditors who acquire property in satisfaction of secured debt are excluded from the definition.

Wood said the bill’s second section would mirror the definition in the tax code and limit certain tax benefits — such as…