Connecticut 2011 Regular Session

Connecticut Senate Bill SB01212 Compare Versions

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1-General Assembly Substitute Bill No. 1212
2-January Session, 2011 *_____SB01212JUD___041511____*
1+General Assembly Raised Bill No. 1212
2+January Session, 2011 LCO No. 4849
3+ *04849_______JUD*
4+Referred to Committee on Judiciary
5+Introduced by:
6+(JUD)
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48 General Assembly
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6-Substitute Bill No. 1212
10+Raised Bill No. 1212
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812 January Session, 2011
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10-*_____SB01212JUD___041511____*
14+LCO No. 4849
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16+*04849_______JUD*
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18+Referred to Committee on Judiciary
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20+Introduced by:
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22+(JUD)
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1224 AN ACT CONCERNING PROTECTIONS FOR RENTERS AFTER THE FORECLOSURE OF A BUILDING IN WHICH THEY ARE LIVING.
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1426 Be it enacted by the Senate and House of Representatives in General Assembly convened:
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16-Section 1. (NEW) (Effective July 1, 2011) (a) For purposes of this section:
28+Section 1. Section 47a-20e of the general statutes is repealed and the following is substituted in lieu thereof (Effective July 1, 2011):
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18-(1) "Bona fide tenant" means a tenant who (A) is not the mortgagor or owner of the property, and (B) entered into the rental agreement in an arms-length transaction;
30+ (a) For purposes of this section:
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20-(2) "Premises", "rental agreement" and "tenant" have the same meanings as provided in section 47a-1 of the general statutes;
32+(1) "Bona fide tenant" means a tenant who (A) is not the mortgagor or owner of the property, and (B) entered into the rental agreement in an arms-length transaction; [and]
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22-(3) "Bona fide buyer" means a purchaser who (A) is not a parent or subsidiary organization of, or otherwise affiliated with, a foreclosing party in whom absolute title has vested, and (B) entered into an agreement for the sale of the foreclosed property in an arms-length transaction for a price that is not substantially less than fair market value; and
34+(2) "Premises", "rental agreement" and "tenant" have the same meanings as provided in section 47a-1; and
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24-(4) "Single-family house" means a residential building that contains only one dwelling unit.
36+(3) "Bona fide buyer" means a purchaser who (A) is not a parent or subsidiary organization of, or otherwise affiliated with, a foreclosing party in whom absolute title has vested, and (B) entered into an agreement for the sale of the foreclosed property in an arms-length transaction for a price that is not substantially less than fair market value.
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26-(b) In addition to the provisions of section 47a-20e of the general statutes, whenever a mortgage or lien of residential real property other than a single-family house has been foreclosed and there is a bona fide tenant in possession on the date absolute title vests in the mortgagee, lienholder or successor in interest, no execution of ejectment may be applied for by, or issued to, the foreclosing party and no summary process action pursuant to chapter 832 of the general statutes or other action to dispossess such tenant may be commenced by the foreclosing party except (1) for a reason set forth in subsection (b) of section 47a-23c of the general statutes, or (2) on the ground that the foreclosing party has entered into an agreement to sell the premises in which the bona fide buyer has required that the building be vacant as a condition of the sale. Any dispute concerning the amount of rent to be paid by the tenant during such period of occupancy may be resolved in accordance with subsection (c) of section 47a-23c of the general statutes.
38+(b) Whenever a mortgage or lien of residential real property has been foreclosed and there is a bona fide tenant in possession on the date absolute title to the property vests in the mortgagee, lienholder or successor in interest, [any execution of ejectment issued pursuant to section 49-22 against such tenant shall be stayed and no] no execution of ejectment may be applied for by, or issued to, the foreclosing party.
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28-(c) Any summary process action or other action authorized pursuant to subdivision (2) of subsection (b) of this section shall not be commenced until (1) in the case of a written rental agreement entered into more than sixty days before the commencement of the foreclosure action, the expiration date contained in such rental agreement or sixty days after the date absolute title vests in the mortgagee, lienholder or successor in interest, whichever occurs first, or (2) in the case of a rental agreement other than one described in subdivision (1) of this subsection, thirty days after the date absolute title vests in the mortgagee, lienholder or successor in interest.
40+(c) Whenever a mortgage or lien of residential real property has been foreclosed and there is a bona fide tenant in possession on the date absolute title vests in the mortgagee, lienholder or successor in interest, no summary process action pursuant to chapter 832 or other action to dispossess such tenant may be commenced by the foreclosing party except (1) for a reason set forth in subsection (b) of section 47a-23c, or (2) on the ground that the foreclosing party has entered into a contract to sell the premises in which the bona fide buyer has required that the building be vacant as a condition of the sale. Any dispute concerning the amount of rent to be paid by the tenant during such period of occupancy may be resolved in accordance with subsection (c) of section 47a-23c.
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30-(d) Nothing in this section, section 47a-20e of the general statutes or Sections 701 to 704, inclusive, of the federal Protecting Tenants at Foreclosure Act, P.L. 111-22, as amended from time to time, shall limit or supersede the right of any tenant under section 47a-23c of the general statutes or any other law to remain in occupancy without regard to foreclosure. Nothing in this section precludes a foreclosing party from negotiating an incentive agreement with a tenant pursuant to section 47a-20f of the general statutes, provided the foreclosing party clearly informs the tenant that pursuant to this section he or she cannot be evicted without cause.
42+(d) Any summary process action [pursuant to chapter 832] or other action [to dispossess such tenant] authorized pursuant to subdivision (2) of subsection (c) of this section shall not be commenced until (1) in the case of a written rental agreement entered into more than sixty days before the commencement of the foreclosure action, the expiration date contained in such rental agreement or sixty days after the date absolute title vests in the mortgagee, lienholder or successor in interest, whichever occurs first, or (2) in the case of a rental agreement other than one described in subdivision (1) of this subsection, thirty days after the date absolute title vests in the mortgagee, lienholder or successor in interest. [, except that a summary process action or other action to dispossess such tenant may be commenced prior to such date for a reason set forth in section 47a-23 or 47a-31 other than for the reason that the tenant no longer has the right or privilege to occupy the premises as a result of such judgment of foreclosure.]
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44+(e) Nothing in this section or Sections 701 to 704, inclusive, of the federal Protecting Tenants at Foreclosure Act, P.L. 111-22, as amended from time to time, shall limit or supersede the right of any tenant under section 47a-23c or any other law to remain in occupancy without regard to foreclosure. Nothing in this section precludes a foreclosing party from negotiating an incentive agreement with a tenant pursuant to section 47a-20f, provided the foreclosing party clearly informs the tenant that pursuant to this section he or she cannot be evicted without cause.
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3549 This act shall take effect as follows and shall amend the following sections:
36-Section 1 July 1, 2011 New section
50+Section 1 July 1, 2011 47a-20e
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3852 This act shall take effect as follows and shall amend the following sections:
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4054 Section 1
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4256 July 1, 2011
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44-New section
58+47a-20e
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46-Statement of Legislative Commissioners:
60+Statement of Purpose:
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48-In section 1(b)(2), "a contract" was changed to "an agreement" for consistency with the terminology used in the definition of "bona fide buyer".
62+To help prevent the decimation of neighborhoods that results when foreclosed rental properties become vacant by allowing a tenant to remain in occupancy in a foreclosed building under certain circumstances.
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52-JUD Joint Favorable Subst.
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54-JUD
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56-Joint Favorable Subst.
64+[Proposed deletions are enclosed in brackets. Proposed additions are indicated by underline, except that when the entire text of a bill or resolution or a section of a bill or resolution is new, it is not underlined.]