New amendments to AO 49 extend the deadline for the judicial emergency and provide a procedure for notifying defendants of the availability of federal funds under the Vermont Homeowner Assistance Program

The Vermont Supreme Court has further amended Administrative Order 49, which declared a judicial emergency on March 16, 2020. The order was promulgated on February 7, 2022, effective February 22, 2022.

The Court extended the effective date of the Administrative Order until May 31, 2022. The Court will continue to respond to the changing situation by amending provisions of the order as necessary but anticipates that some portions will continue to be necessary due to the ongoing impacts of the pandemic.

The other amendments provide a procedure for notifying defendants of the availability of federal funds under the Vermont Homeowner Assistance Program (VHAP), which assists borrowers with overdue mortgages in hopes of reducing foreclosures. The requirements apply in one-to-four-unit residential property foreclosure actions and residential mobile home replevin actions.

In essence, plaintiffs in a covered action are required to serve notice on the defendant borrower of the availability of VHAP funds. If a defendant who has applied for VHAP funds so requests, any entry of judgment, notice of sale, sale of the property, or issuance of an order of replevin is automatically stayed for 60 days. The stay does not apply to foreclosure mediation unless ordered by the court. The court may terminate the stay if the plaintiff requests on a showing of one or more specific objections. The stay is terminated automatically after 60 days if no VHAP action has been reported and an extension is not sought. If plaintiff learns that defendant has applied to VHAP, plaintiff must report that fact to the court, which may take appropriate action. The court will terminate a stay upon notification by either party that the VHAP application was denied. The provision expires on September 30, 2025, or on the earlier exhaustion of VHAP funds.

Two new forms are adopted. Appendix E provides a form for plaintiffs to certify compliance with the notice requirement. Appendix F contains the notice to defendants and a sample request to stay that can be filed by a defendant.

The full text of Administrative Order 49 and other updates regarding COVID-19 and court operations are available at www.vermontjudiciary.org/covid19.