H.551 Introduced by Representatives Grad of Moretown, Christie of Hartford, Colburn of Burlington, Colston of Winooski, Kornheiser of Brattleboro, LaLonde of South Burlington, and Rachelson of Burlington 

Referred to Committee on Date: 

Subject: Property; restrictive covenants Statement of purpose of bill as introduced: 

This bill proposes to prohibit covenants in deeds that purport to restrict the ownership of property on the basis of race or religion and to establish a process for the removal of such covenants from deeds. An act relating to prohibiting racially and religiously restrictive covenants in deeds It is hereby enacted by the General Assembly of the State of Vermont: ​

Sec. 1. LEGISLATIVE INTENT While racially and religiously restrictive covenants have been held unenforceable by courts since the U.S. Supreme Court’s 1948 decision in Shelley v. Kramer, 344 U.S. 1 (1948), no State law currently exists to render these covenants void and to put an end to what was an invidious, historical practice of discrimination in the United States. This practice was responsible, in part, for preventing persons of racial and religious minority backgrounds from fully participating in one of the greatest expansions of wealth and prosperity in this country’s history through federally backed mortgages and freely available homeownership. It is the intent of the General Assembly that this act prohibit racially and religiously restrictive covenants from ever being used in Vermont again, regardless of their enforceability, and that it ensure that existing racially and religiously restrictive covenants remain in municipal land records to preserve the historical record and maintain critical evidence of a pervasive system of discrimination that existed in Vermont and throughout the country. 

Sec. 2. 27 V.S.A. § 546 is added to read: § 546. RACIALLY AND RELIGIOUSLY RESTRICTIVE COVENANTS IN DEEDS PROHIBITED (a) A deed, mortgage, plat, or other recorded device recorded on or after July 1, 2022 shall not contain a covenant, easement, or any other restrictive or reversionary interest purporting to restrict the ownership or use of real property on the basis of race or religion. (b) A covenant, easement, or any other restrictive or reversionary interest in a deed, mortgage, plat, or other recorded device purporting to restrict the ownership or use of real property on the basis of race or religion is declared contrary to the public policy of the State of Vermont and shall be void and unenforceable. This subdivision shall apply to a restrictive covenant executed at any time. 

Sec. 3. EFFECTIVE DATE This act shall take effect on July 1, 2022.