Community Associations Institute (CAI) Vermont Legislative Action Committee (VT LAC) spent the 2026 legislative session advocating on behalf of the approximately 109,000 Vermonters living in 46,400 homes in nearly 2,000 community associations across the Green Mountain State.
Legislative Overview
Vermont’s legislative session began on January 6 and adjourned on May 29, 2026. Legislation not passed in odd-numbered years gets carried over to even-numbered years, meaning the state operates on a biennial legislative cycle. The Vermont Legislature was focused on a number of pressing issues, including transportation, education reform, taxation, and land use policies. Towards the end of the legislative session, the legislature shifted to getting a small number of priority bills passed, leaving many pieces of legislation frozen in various stages of the legislative process.
2026 Key Bills of Interest to Community Associations in Vermont
VT LAC tracked 35 bills in Vermont this session, directly advocating on those with potential implications on the community association industry. Below is a brief overview of highlights from the 2026 Vermont Legislative Session:
CAI SOUGHT AMENDMENTS TO THE BELOW BILLS
CAI works with legislators to champion amendments to legislation to help the language better align with CAI’s public policy positions on any given topic impacting the community association industry.
S 328 An act relating to housing and common interest communities
While several bills were introduced relating to community associations this year, S 328 was the bill that ended up moving forward through its committee of origin. Initially, this bill limited association regulatory authority, by making void any covenants prohibiting or unreasonably restricting home-based childcare, rental of units, construction of accessory dwelling units, or EVSE installation in a limited common element or parking space designated for the unit, effective June 30, 2026.
VT LAC engaged with lawmakers directly to explain the practical and legal implications of the proposals and clarify them as they relate to existing association rules, and to encourage flexibility to allow associations to serve their communities’ particular needs. Ultimately, the Senate Economic Development, Housing, and General Affairs Committee opted to amend the bill to remove most provisions that would impact community associations. Legislators, in communications with VT LAC, realized that community association statutes require careful study before attempting changes, and have committed to working with stakeholders including the LAC to create legislation which would better fit the realities of Vermont community associations.
Towards the end of the legislative session, this bill was further amended to include a formal order for legislative staff to work on a comprehensive study outlining legal and other compliance issues relating to requiring common interest communities to authorize leasing of units and commercial purposes within units, and to permit construction of accessory dwelling units and installation of gardens. Legislative staff have until November 15, 2026 to provide legislators with this study. It was also amended to add language requiring the Secretary of State to provide information about Vermont’s common interest communities, including the governing statutes.
Status: Successfully PASSED, and signed by the Governor on June 18, 2026. The provisions applicable to common interest communities are effective July 1, 2026.
H 537 An act relating to the right to grow vegetable gardens
This restricts a community association’s ability to regulate the planting of vegetable gardens. As initially drafted, the bill too broadly restricted association authority to impose reasonable rules and regulations for the benefit of the community as a whole. VT LAC was able to work with legislators to amend this bill to protect the right to maintain aesthetic standards, correct violations, and require the clearing of weeds and dead plants.
In light of the legal issues VT LAC identified in connection with the bill, the legislators included the proposed rights in those the legislative staff is required to include in the report required by S 328.
Status: DIED in Senate Committee.
This transportation omnibus bill initially did not contain any language relevant to community associations, however the language from S 270 An act relating to a right to charge electric vehicles at home and S 328 was later amended into the bill. In response to the new language that would impact how associations may choose to regulate electric vehicle charging stations, VT LAC worked with lawmakers on compromise language which aligned more closely with CAI’s Electric Vehicle Charging Stations Public Policy.
This bill, as amended, allows for associations to reasonably restrict electric vehicle charging stations and allocate the cost attributable to them to those benefitting. It applies to pre-existing communities with respect to events and circumstances occurring after June 30, 2026.
Status: Successfully PASSED, and signed by the Governor on June 18, 2026. The provisions applicable to common interest communities are effective July 1, 2026.
CAI OPPOSED THE BELOW BILLS
CAI LACs oppose legislation that is contradictory with CAI’s public policy positions. If a LAC believes it may need to consider or adopt any legislative or regulatory position that would be in conflict with these official positions, it must submit a request for a deviation to be considered by CAI’s Government & Public Affairs Committee and/or Board of Trustees.
S 305 An act relating to housing and land use
This bill overrides existing association covenants banning rental units and home-based childcare. It also prohibits associations from adopting any new covenants which would ban the presence of rental units and home-based childcare. S 305 does not leave room for associations to set reasonable rules and regulations beyond what is set out in statutes governing rentals and home-based childcare.
VT LAC opposed this bill, as it does not align with either CAI’s Tenants in Community Associations Public Policy, nor the Residential Childcare Facilities Public Policy.
While the bill died in committee, its provisions are included in those the legislative staff is required to study in consultation with stakeholders.
Status: Successfully DIED in Committee.
Get Involved in CAI’s Vermont Advocacy Work through Your Local Chapter!
In addition to strong and effective advocacy work in Montpelier, CAI’s New England chapter provides information, resources, education programs and best practices designed to help you and your communities throughout Vermont thrive.
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CAI keeps track of legislation throughout the year, so you can stay informed. You can check the legislation that CAI is monitoring around the clock here. |
CAI VT Legislative Resources and Contact Information
CAI Vermont Legislative Action Committee – (888) 224-4321
(208) 918-4717 info@caine.org |
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