Vermont Timeshare Amendments Signed by the Governor

2013-05-14

Issue Brief

ARDA member resorts in Vermont are supporting changes to the state's Common Interest Ownership Act (VCIOA) due to several onerous amendments that took effect in 2012.  While there are several sections that are being changed, ARDA and ARDA-ROC are focusing on permitting timeshare associations to deny use of their timeshares to owners who are delinquent in their annual assessments.

Impact

When the VCIOA amendments took effect on January 1, 2012, ARDA member timeshare associations learned that VCIOA did not allow any owners' association to deny use of a unit due to delinquent assessments.  While appropriate for whole ownership, the provision eliminated a very effective method for timeshare associations to collect assessments that is permitted in many other states. 

Position/Call to Action

In examining all the VCIOA amendments, ARDA and ROC discovered that other provisions needed attention, including correcting references to new statutory sections that would allow timeshare associations to use non-judicial foreclosure in Vermont, as well as clarifying that a timeshare was not a "dwelling unit"  (someone's home) for purposes of foreclosure. The bill also amends a section of the probate statute to allow timeshares to be handled as "small estates" thereby minimizing time and costs for out-of-state heirs when the only portion of an estate in Vermont is a timeshare interval, and the bill slightly changes how materials are distributed prior to an association board meeting.  Rep. Heidi Scheuermann (R-Stowe) is the principal sponsor of the bill.

Issue Updates

 H. 441 as it passed the House on May 7 includes a small Floor amendment that provided a technical correction to the citation to the lien foreclosure statute.   The bill will now go over to the Senate Rules Committee before it is assigned to its official reference committee.  Since the 2013 session has ended, the bill will be taken up in the Senate at the beginning of the 2014 session.

H.441 passed the Senate by a unanimous vote on March 27th.  The bill will need to make a brief stop back in the House for a date correction before going to the Governor. 

Resolution

The House concurred with the Senate's proposal to amend H.441 to provide for a July 1, 2014 effective date.  The Governor signed the bill into law on April14th. 

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