Connecticut House Bill HB05124

Connecticut 2020 Regular Session

• Introduced: 2/13/20
• Refer: 2/13/20
• Report Pass: 3/5/20

Caption

An Act Requiring Landlords To Notify Tenants Of Foreclosure Proceedings.

Impact

This bill significantly impacts state housing laws by establishing new requirements for landlord disclosures. Upon receiving notice of foreclosure, landlords must notify both tenants and state housing authorities within ten days. The bill also provides tenants with the right to seek court intervention to appoint a receiver who can manage rental payments until the foreclosure matter is resolved. These provisions are designed to protect tenants' interests and provide them with a means to address potential disruptions in their rental agreements.

Summary

House Bill 05124, titled 'An Act Requiring Landlords To Notify Tenants Of Foreclosure Proceedings,' mandates that landlords inform tenants of any pending foreclosure actions against their rental properties. The bill aims to increase transparency within the rental market, ensuring that tenants are aware of their housing stability and the potential risks they may be facing. Furthermore, landlords are required to provide this notice prior to entering into any rental agreement, thereby giving prospective tenants crucial information to make informed decisions about their living arrangements.

Contention

Despite its protective intentions, some contention surrounds HB 05124. Landlords and certain property owner associations have expressed concern that mandated notifications could deter potential renters and impact property values negatively. Additionally, there are fears that the requirement to appoint a receiver could create further bureaucratic hurdles and increase operational costs for property management. Critics argue this could lead to fewer rental properties being available, impacting housing availability negatively in the long run.