(a) If the building to be converted consists of more than five dwelling units or if the building to be converted is part of an apartment complex or is one building in a group of buildings which are contiguous or which share common areas, the landlord shall give to each tenant the following minimum written notice to vacate or purchase the unit: two years to tenants who are elders or have a disability; one year to low-income tenant households; six months to all other tenants.

(b) If the building to be converted consists of five or fewer dwelling units, the landlord shall give to each tenant the following minimum written notice to vacate or purchase the unit: one year to tenants who are elders or have a disability; six months to low-income tenant households; three months to all other tenants. A landlord may not circumvent the longer notice requirements by converting a building consisting of five or fewer dwelling units if the conversion is part of a plan to convert more than five dwelling units.

(c) The notice shall state that the building is to be converted to a common interest community. It shall set forth generally the rights of tenants under this subchapter, and shall be given by certified mail, return receipt requested, at the address of the unit or any other mailing address provided by the tenant. Failure to give notice as required by this section is a defense to an action for possession.

(d) During the notice period, a tenant may not be required to vacate except for a reason specified in 9 V.S.A. § 4467(a) or (b).

(e) During the notice period, rent increases shall be limited to an amount which reflects reasonable profits, actual increased costs of maintenance and operation of the dwelling unit subject to conversion. Costs associated with the proposed conversion are not a permissible basis for a rent increase.

(f) After receipt of the notice prescribed in subsection (a) of this section, a tenant may terminate the rental agreement upon 30 days' written notice to the landlord.

(g) Nothing in this section permits termination of a written lease by a landlord in violation of its terms.

(h) The notice requirements imposed by this section shall not affect the right of a declarant to transfer ownership interests in dwelling units which are not subject to those requirements or as to which the notice period has expired. (Added 1985, No. 175 (Adj. Sess.), § 5; amended 1997, No. 104 (Adj. Sess.), § 2, eff. Jan. 1, 1999; 2013, No. 96 (Adj. Sess.), § 186.)