§ 6244. Security deposits

(a) A security deposit is any advance, deposit or prepaid rent which is refundable to a leaseholder at the termination or expiration of the occupancy. A security deposit is to secure the leaseholder's obligation to pay rent and to maintain a rented mobile home or mobile home lot.

(b) The mobile home park owner may retain all or a portion of the security deposit for any of the following reasons:

(1) nonpayment of rent;

(2) damage to property of the park owner, unless the damage is the result of normal wear and tear or the result of actions or events beyond the control of the leaseholder;

(3) nonpayment of utility or other charges which the leaseholder was required to pay directly to the park owner or to a utility;

(4) expenses for removal of articles abandoned by the leaseholder, including personal property, the mobile home, rubbish and motor vehicles from the mobile home lot.

(c) A park owner shall return to the leaseholder the security deposit with a written statement itemizing any deductions within 14 days from the date on which the leaseholder:

(1) removes a mobile home from the park and terminates the lease for the lot on which the mobile home was located; or

(2) delivers to the park owner an executed bill of sale transferring ownership of a mobile home which is to remain in the park to an individual who has entered into a lease for the lot with the park owner; or

(3) has been removed from the park pursuant to a writ of possession.

(d) The park owner shall comply with this section by hand-delivering or mailing the statement and any payment required to the last known address of the leaseholder.

(e) If a park owner fails to return the security deposit with a statement within 14 days, the park owner forfeits the right to withhold any portion of the security deposit. If the failure is wilful, the park owner shall be liable for double the amount wrongfully withheld, plus reasonable attorney fees and costs.

(f) Upon termination of the park owner's interest in the park, the security deposit shall be transferred to the new park owner. The new park owner shall give the leaseholder actual notice of the new park owner's name and address with a statement that the security deposit has been transferred to the new park owner.

(g) A municipality may adopt an ordinance governing security deposits on mobile homes or mobile home lots. The ordinance shall be supplemental to and not inconsistent with the minimum protections of the provisions of this section. The ordinance may not limit how a security deposit is held. The ordinance may authorize the payment of interest on a security deposit. The ordinance may provide that a housing board of review constituted pursuant to 24 V.S.A. § 5005 may hear and decide disputes related to security deposits upon request for a hearing by a park owner or leaseholder. The board's actions shall be reviewable under 24 V.S.A. § 5006. (Added 1993, No. 141 (Adj. Sess.), § 9, eff. May 6, 1994; amended 2007, No. 176 (Adj. Sess.), § 65.)