Vermont HOA Laws

Last Updated: December 1, 2023 by Corrin Swintosky

Homeowners associations (HOAs) manage many planned communities in Vermont. Various local, state, and federal regulations as well as governing documents oversee HOAs in Vermont.

Who Regulates HOAs in Vermont?

In Vermont, HOAs are regulated by the Vermont Planned Community Associations found in Vermont Revised Statutes § 421J-1 through 421J-16. This act applies to residential developments with common areas run by members. This act does not apply to condominiums, cooperative housing corporations, or any development that is not for residential purposes. Condominiums are governed by the Vermont Condominium Property Act.

HOAs also have documents that regulate themselves. Every HOA is different, however, the governing documents typically include: Articles of Incorporation, Bylaws, Declaration of Covenants, Conditions and Restriction, and other rules.

HOAs in Vermont may be subject to applicable federal laws such as:

• The Americans with Disabilities Act of 1990
• The Fair Housing Act
• Code of Federal Regulations

HOAs may be subject to certain state laws such as:

• Vermont Condominium Ownership Act
• Vermont Common Interest Ownership Act
• Vermont Nonprofit Corporation Act

How to Find HOA Regulations in Vermont

HOA governing documents are public records in Vermont. Homeowners can visit the county recorder’s office to find documents like amendments and bylaws. [1] Financial and other records must be made reasonably available for examination by a unit owner and an authorized agent of a unit owner

The homeowner will be able to find the specific HOA by searching under the subdivision or community name. 

A website also exists that allows residents to access these records and reports produced by the Vermont Department of Commerce, Community, and Economic Development.

HOA Powers in Vermont

In Vermont, an HOA has the power to: [2]

• Adopt and amend bylaws, rules and regulations
• Upkeep common elements in the community
• Make additional improvements on the common elements
• Place liens on properties to collect overdue bills

Moreover, HOA governing documents can grant additional powers such as granting or placing restrictions on memberships, changing different elements of the common areas, and parking requirements.

Can an HOA Impose Fines on a Homeowner in Vermont?

In Vermont, an HOA can impose fines on a homeowner for violating its rules if stated in the governing documents. [2] Furthermore, Vermont law gives HOAs the right to impose fines on homeowners.

The governing documents will note the amount and type of fees in the HOA as well as the notice requirements for such fees.

Can an HOA Take Your Home in Vermont?

In Vermont, an HOA can foreclose on a homeowner’s house within its community. HOAs have the power to place a lien on a property when the owner neglects to pay their dues. If a lien goes unresolved, the HOA can foreclose on the house. [2]

There are no state laws allowing an HOA to evict a homeowner. However, HOA provisions for evicting tenants may exist for evicting tenants, and should be referenced in the governing documents. In addition, the HOA may have other powers or restrictions regarding rental properties in its governing documents.

Can an HOA Enter Your Property in Vermont?

There is no state provision in Vermont that governs HOAs entering a homeowner’s property. Clauses of if, when, and how an HOA can enter a homeowner’s house will be listed in its governing documents.

Typically, an HOA may be able to enter a homeowner’s property in cases of emergency, maintenance, or violation of any rules or regulations.

Except in cases of emergency, an HOA should provide reasonable notice to the homeowner prior to the HOA entering the property. A reasonable timeline can range depending on the reason for entry. Reasonable notice can be between three days and a couple of weeks. [3]

Where Do I File a Complaint Against my HOA in Vermont?

There are different agencies to file a complaint against an HOA, which is dependent on the type of complaint.

If a homeowner feels they are a victim of housing discrimination, they can file a complaint with the Vermont State Bar Association, Vermont State Commission for Human Rights, the U.S. Department of Housing and Urban Development, or file a private lawsuit in Vermont state or federal court.

For complaints concerning HOA fees, a homeowner can file a complaint with the local county or city housing department, the Federal Trade Commission, or the Consumer Financial Protection Bureau. Under the Fair Debt Collection Practices Act, homeowners may also file in state or federal court within one year of the violation date.

A homeowner can bring all other complaints to state court in the appropriate jurisdiction by filing a claim.

Joining & Leaving an HOA in Vermont

There are two types of HOAs that govern joining and leaving clauses. Documents explaining the HOA and its membership rules should be presented at the closing for a new owner’s home purchase.

• Mandatory HOAs. When a person buys a home, they automatically become a member required to abide by any HOA rules listed in the governing documents. This usually includes that a homeowner is not able to leave the HOA freely.
• Voluntary HOAs. When a person buys a home, membership is a choice for each homeowner. If they choose to become a member, they may leave at any time by stopping their payments with the HOA.

To leave a mandatory HOA, a homeowner can sell their house or try to petition the court to have their home removed. However, there is no guarantee the petition will be granted. [4]

How to Dissolve an HOA in Vermont

The process for dissolution of an HOA in Vermont may be set forth in the HOA’s governing documents. If it is not, members of the HOA must vote at least ⅔ in favor of dissolution at an HOA meeting

If dissolution is approved, the HOA has to handle and dissolve all of its assets and debts. [5] A plan of dissolution must then be adopted by at least ⅔ of HOA members on how to dissolve all of its assets.

If approved, the agreeing members will sign a termination agreement and carry out any other business needs, such as settling debts, disposing of assets, and filing the necessary documentation with the Vermont Secretary of State.