11 V.S.A. § ___ § 1599
Proprietary lease
Operative Text
Every member of a cooperative housing corporation shall be entitled to receive from the cooperative housing corporation a written proprietary lease which shall include the following: (1) A provision that no sublease in excess of one year, no amendment, and no modification to such proprietary lease shall be permitted or created without the prior written consent of the board of directors of the cooperative housing corporation. A member who sublets does not relinquish the rights and benefits of membership. (2) A provision that the security for a loan against the member’s cooperative interest shall be in the nature of a personal property security interest, and any default of such loan shall entitle the lender to treat such default in the same manner as a default of a loan secured by personal property. (3) A provision that the cooperative housing corporation’s possessory remedy in event of default of a member affecting that person’s right to occupancy shall be in an action under 12 V.S.A. chapter 169, subchapter 3. However, good cause shall be required for termination of the right of occupancy. Good cause shall include nonpayment of loans, fees, costs, or assessments pertaining to the cooperative interest, or material violation of bylaws, rules, or proprietary lease which continues following reasonable notice and reasonable opportunity to cure the alleged material violations. (4) Provisions for determining maintenance and carrying charges for the unit. (5) A right on the part of the cooperative housing corporation to cure any default in the member’s obligations pertaining to the member’s cooperative interest, including share loans, and cooperative fees, costs, and assessments. (6) A provision requiring that terms and form of the proprietary lease shall be amended by the board of directors only. (7) A provision requiring that any lease term which is not uniformly applied to all members or prospective members of the same or similar category shall be unenforceable. (Added 1987, No. 254 (Adj. Sess.), § 1, eff. June 16, 1988.)
Under 11 V.S.A. ch. 14 § 1599, every member of a Vermont cooperative housing corporation has the right to receive a written proprietary lease containing specific required provisions. These include rules about subleasing, loan security interests, eviction procedures, maintenance charges, the corporation's right to cure defaults, lease amendment authority, and uniform application of lease terms. The provision also establishes that a member who sublets retains membership rights, and that termination of occupancy rights requires good cause and a reasonable opportunity to cure violations.
Plain English — not legal advice.
Cooperative housing corporations operating under 11 V.S.A. ch. 14 § 1599 are generally expected to issue written proprietary leases to every member that contain all seven enumerated provisions. Compliant operators typically ensure that subleases exceeding one year require board approval, that lease amendments are made only by the board, and that lease terms are applied uniformly across members of the same or similar category. When pursuing a possessory remedy for a member's default affecting occupancy, the corporation's process runs through the eviction procedures specified in 12 V.S.A. chapter 169, subchapter 3, and good cause must be established before termination of occupancy rights.
General guidance for property managers — not legal advice for your specific situation. Consult an attorney for advice on your case.
Members of Vermont cooperative housing corporations are entitled under 11 V.S.A. ch. 14 § 1599 to receive a written proprietary lease that includes protections such as the requirement of good cause before their right to occupancy can be terminated, as well as a reasonable notice and opportunity to cure any alleged material violations. Members who sublet their units do not lose their membership rights, and any lease term not uniformly applied to all members of the same or similar category is unenforceable. Tenants who believe their cooperative has failed to provide a compliant proprietary lease or has applied lease terms inconsistently may wish to review their lease documents, consult a tenant-rights organization familiar with Vermont cooperative housing law, or explore available legal remedies.
General guidance for tenants — not legal advice for your specific situation. Consult a tenant-rights organization or attorney for advice on your case.
Generated October 18, 2026 — auto-generated, not yet human-reviewed. See /transparency for methodology.
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