Signed by Governor Phil Scott

Vote Smart's Synopsis:

Vote to pass a bill that establishes a temporary moratorium on evictions and foreclosures during the COVID-19 coronavirus pandemic.

Highlights:

• Defines “emergency period” to mean the period beginning with the Governor’s declaration of a state of emergency on March 13, 2020, arising from COVID-19, and ending 30 days after the Governor terminates the state of emergency declaration (Sec. 1).

• Prohibits this act from doing any of the following, including (Sec. 1):

• Relieving a tenant of the obligation to pay rent;

• Relieving a borrower under a residential loan agreement of the obligation to make timely payments; or

• Limiting a court’s ability to act in an emergency, which may include an action that that involves criminal activity, illegal drug activity, acts of violence, or other circumstances that seriously threaten the health or safety of other residents;

• Establishes that any actions for ejectment, foreclosure, or outstanding orders that could lead to the execution of a writ of possession against a tenant or resident are stayed until the end of the emergency period (Sec. 1).

• Authorizes a residential mortgage lender or landlord to commence a foreclosure or ejectment action against a tenant under the following rules and conditions, including (Sec. 1):

• Filing the action with the Civil Division of the Superior Court;

• Having the court stay the action as of the date of the filing until the end of the emergency period;

• Not attempting to serve any civil process; and

• Giving 60 days for the deadline to complete payment after the emergency ends.

• Specifies that any writ of possession already issued by a court prior to the effective date of this act shall be stayed as of the start date of the emergency declaration period and resume once the Governor terminates the state of emergency declaration (Sec. 1).

• Authorizes a hearing to be called by a court within the first 45 days after the emergency period ends, and specifies that if a tenant is found to of not paid rent when obligated to do so then the court shall order the following, including paying (Sec. 1):

• Rent as of accrued from the date of the order while the proceeding is pending; and

• Rent accrued from:

• The date the motion was served if after the effective date of this act; or

• The end of the emergency period if the motion was served before the effective date of this act.

• Authorizes a court to reduce the amount of rent paid after considering a tenants inability to pay due to circumstances arising in the emergency period and whether the tenant made good faith attempts to secure available emergency rental payment funds (Sec. 1).

• Specifies that this act shall take effect immediately upon its passage (Sec. 2).

Full Bill Text