Connecticut House Bill HB05942

Connecticut 2021 Regular Session

• Introduced: 1/28/21
• Refer: 1/28/21

Caption

An Act Imposing A Moratorium On The Initiation Of Certain Foreclosure Actions.

Impact

If enacted, HB 5942 would modify chapter 846 of the general statutes to prevent lenders from pursuing foreclosure actions against landlords during the declared public health emergency. This change would provide immediate relief to landlords who are facing financial hardship due to the pandemic's effects on rental income. The bill's intent is to alleviate pressure on landlords, thus preventing an influx of foreclosure cases that could exacerbate the ongoing housing crisis during the pandemic.

Summary

House Bill 5942 aims to impose a temporary moratorium on the initiation of certain foreclosure actions during the ongoing public health emergency associated with the COVID-19 pandemic. Specifically, the bill seeks to protect mortgagors, particularly landlords, who are unable to pay their mortgage due to non-payment of rent by their tenants. The bill acknowledges that due to the eviction moratorium in place, landlords may not be able to remove tenants who are delinquent in their rent payments, subsequently affecting their ability to meet mortgage obligations.

Contention

Notably, the bill may spark debates regarding its overall effectiveness and the potential unintended consequences for the housing market. Supporters argue that it is a necessary safeguard for landlords who are particularly vulnerable in the current economic climate. However, some critics may contend that extending such protections could discourage tenants from paying rent and potentially contribute to longer-term financial challenges for landlords who rely on rental income. This creates a conflict between the financial stability of landlords and the rights of tenants during a health crisis.