LCO No. 1738 1 of 14 General Assembly Raised Bill No. 5234 February Session, 2022 LCO No. 1738 Referred to Committee on HOUSING Introduced by: (HSG) AN ACT CONCERNING THE RIGHTS AND RESPONSIBILITIES OF LANDLORDS AND TENANTS. Be it enacted by the Senate and House of Representatives in General Assembly convened: Section 1. Subsections (a) and (b) of section 47a-21 of the 2022 1 supplement to the general statutes are repealed and the following is 2 substituted in lieu thereof (Effective October 1, 2022): 3 (a) As used in this chapter: 4 (1) "Accrued interest" means the interest due on a security deposit as 5 provided in subsection (i) of this section, compounded annually to the 6 extent applicable. 7 (2) "Commissioner" means the Banking Commissioner. 8 (3) "Damage insurance" means a bond or commercial insurance 9 coverage as specified in the rental agreement to secure the performance 10 by the tenant of the terms and conditions of the rental agreement and to 11 replace any requirement for a security deposit. 12 [(3)] (4) "Escrow account" means any account at a financial institution 13 Raised Bill No. 5234 LCO No. 1738 2 of 14 which is not subject to execution by the creditors of the escrow agent 14 and includes a clients' funds account. 15 [(4)] (5) "Escrow agent" means the person in whose name an escrow 16 account is maintained. 17 [(5)] (6) "Financial institution" means any state bank and trust 18 company, national bank, savings bank, federal savings bank, savings 19 and loan association, and federal savings and loan association that is 20 located in this state. 21 [(6)] (7) "Forwarding address" means the address to which a security 22 deposit may be mailed for delivery to a former tenant. 23 [(7)] (8) "Landlord" means any landlord of residential real property, 24 and includes (A) any receiver; (B) any successor; and (C) any tenant who 25 sublets his premises. 26 [(8)] (9) "Receiver" means any person who is appointed or authorized 27 by any state, federal or probate court to receive rents from tenants, and 28 includes trustees, executors, administrators, guardians, conservators, 29 receivers, and receivers of rent. 30 [(9)] (10) "Rent receiver" means a receiver who lacks court 31 authorization to return security deposits and to inspect the premises of 32 tenants and former tenants. 33 [(10)] (11) "Residential real property" means real property containing 34 one or more residential units, including residential units not owned by 35 the landlord, and containing one or more tenants who paid a security 36 deposit. 37 [(11)] (12) "Security deposit" means any advance rental payment, or 38 any installment payment collected pursuant to section 47a-22a, except 39 an advance payment for the first month's rent or a deposit for a key or 40 any special equipment. 41 [(12)] (13) "Successor" means any person who succeeds to a landlord's 42 Raised Bill No. 5234 LCO No. 1738 3 of 14 interest whether by purchase, foreclosure or otherwise and includes a 43 receiver. 44 [(13)] (14) "Tenant" means a tenant, as defined in section 47a-1, as 45 amended by this act, or a resident, as defined in section 21-64. 46 [(14)] (15) "Tenant's obligations" means (A) the amount of any rental 47 or utility payment due the landlord from a tenant; (B) a tenant's 48 obligations under the provisions of section 47a-11; and (C) the actual 49 reasonable cost of changing the locks of the dwelling unit pursuant to 50 section 47a-7b, if the tenant has not paid such cost. 51 (b) (1) In the case of a tenant under sixty-two years of age, a landlord 52 shall not demand a security deposit or damage insurance in an amount 53 that exceeds two months' rent. 54 (2) In the case of a tenant sixty-two years of age or older, a landlord 55 shall not demand a security deposit or damage insurance in an amount 56 that exceeds one month's rent. Any landlord who has received a security 57 deposit in an amount that exceeds one month's rent from a tenant who 58 becomes sixty-two years of age after paying such security deposit shall 59 return the portion of such security deposit that exceeds one month's rent 60 to the tenant upon the tenant's request. Any landlord who has required 61 damage insurance in lieu of a security deposit in an amount that exceeds 62 one month's rent from a tenant who attains sixty-two years of age after 63 providing such damage insurance shall accept replacement damage 64 insurance coverage from such tenant in an amount not to exceed one 65 months' rent. 66 (3) Any landlord may permit any tenant to provide damage 67 insurance in lieu of the payment of a security deposit. Such damage 68 insurance shall conform to the following criteria: (A) The insurance 69 company providing the damage insurance is licensed or authorized to 70 do business in this state, (B) the damage insurance policy permits the 71 monthly payment of premiums unless the tenant selects a different 72 payment schedule, (C) the damage insurance is effective upon the 73 payment of the first premium and remains effective for the entire lease 74 Raised Bill No. 5234 LCO No. 1738 4 of 14 term, (D) the damage insurance coverage provided per claim is no less 75 than the amount the landlord requires for the security deposit, (E) the 76 insurance company providing the damage insurance agrees to approve 77 or deny payment of a claim in accordance with the Insurance 78 Department regulations of this state, and (F) the insurance company 79 providing the damage insurance shall notify the landlord in writing 80 within ten days if the damage insurance policy lapses or is canceled for 81 any reason. 82 (4) Any landlord may designate one or more insurance companies 83 from which the landlord will accept damage insurance in lieu of a 84 security deposit. Any such insurance companies shall be identified in 85 the written lease agreement between landlord and tenant. 86 (5) Any tenant who opts to provide damage insurance in lieu of a 87 security deposit may, at any time, opt to pay the full security deposit to 88 the landlord in lieu of maintaining the damage insurance policy. The 89 landlord shall not alter the terms of the lease in the event a tenant opts 90 to pay the full amount of the security deposit pursuant to this 91 subdivision. 92 Sec. 2. (NEW) (Effective October 1, 2022) (a) As used in this section, 93 "landlord", "tenant", "dwelling unit" and "rental agreement" have the 94 same meaning as provided in section 47a-1 of the general statutes, and 95 "walk-through" means a joint physical inspection of the dwelling unit 96 by the landlord and the tenant, or their designees, for the purpose of 97 noting and listing any observed conditions within the dwelling unit. On 98 and after January 1, 2023, upon or after the entry into a rental agreement 99 but prior to the tenant's occupancy of a dwelling unit, a landlord shall 100 offer such tenant the opportunity to conduct a walk-through of the 101 dwelling unit. If the tenant requests such a walk-through, the landlord 102 and tenant shall use a copy of the preoccupancy walk-through checklist 103 prepared by the Commissioner of Housing under subsection (c) of this 104 section. The landlord and the tenant, or their designees, shall specifically 105 note any existing conditions, defects or damages to the dwelling unit 106 present at the time of the walk-through. After the walk-through, the 107 Raised Bill No. 5234 LCO No. 1738 5 of 14 landlord and the tenant, or their designees, shall sign duplicate copies 108 of the checklist and each shall receive a copy. 109 (b) Upon the tenant's vacating of the dwelling unit, the landlord may 110 not retain any part of the security deposit collected under chapter 831 of 111 the general statutes or seek payment from the tenant for any condition, 112 defect or damage that was noted in the preoccupancy walk-through 113 checklist. Such walk-through checklist shall be admissible, but shall not 114 be conclusive, as evidence of the condition of the dwelling unit at the 115 beginning of a tenant's occupancy in any administrative or judicial 116 proceeding. 117 (c) Not later than December 1, 2023, the Commissioner of Housing 118 shall (1) prepare a standardized preoccupancy walk-through checklist 119 for any landlord and tenant to use to document the condition of any 120 dwelling unit during a preoccupancy walk-through under subsection 121 (a) of this section, and (2) make such checklist available on the 122 Department of Housing Internet web site. 123 (d) The provisions of this section shall not apply to any tenancy under 124 a rental agreement entered into prior to January 1, 2023. 125 Sec. 3. (NEW) (Effective October 1, 2022) (a) As used in this section, 126 "landlord" and "tenant" have the same meaning as provided in section 127 47a-1 of the general statutes, as amended by this act, and "tenant 128 screening report" means a credit report, a criminal background report, 129 an employment history report, a rental history report, or any 130 combination thereof, used by a landlord to determine the suitability of 131 a prospective tenant. 132 (b) No landlord may demand from a prospective tenant any 133 payment, fee or charge for the processing, review or acceptance of any 134 rental application, or demand any other payment, fee or charge before 135 or at the beginning of the tenancy, except a tenant screening report as 136 provided by subsection (c) of this section. 137 (c) Any landlord may charge a fee or fees to reimburse costs 138 Raised Bill No. 5234 LCO No. 1738 6 of 14 associated with conducting a tenant screening report, provided the 139 cumulative fee for such tenant screening report is no more than the 140 actual cost of the tenant screening report or twenty dollars, whichever 141 amount is less, and the landlord shall waive any such fee if the 142 prospective tenant provides a copy of a tenant screening report that is 143 satisfactory to the landlord and that was conducted within thirty days 144 of the tenant's rental application. A landlord may not collect such fee or 145 fees unless the landlord provides the prospective tenant with a copy of 146 the tenant screening report and a copy of the receipt or invoice from the 147 entity conducting the tenant screening report concerning the 148 prospective tenant. 149 Sec. 4. Section 47a-23c of the general statutes is repealed and the 150 following is substituted in lieu thereof (Effective October 1, 2022): 151 (a) (1) Except as provided in subdivision (2) of this subsection, this 152 section applies to any tenant who resides in a building or complex 153 consisting of five or more separate dwelling units or who resides in a 154 mobile manufactured home park and who is either: (A) Sixty-two years 155 of age or older, or whose spouse, sibling, parent or grandparent is sixty-156 two years of age or older and permanently resides with that tenant, or 157 (B) a person with a physical or mental disability, as defined in 158 subdivision (8) of section 46a-64b, or whose spouse, sibling, child, 159 parent or grandparent is a person with a physical or mental disability 160 who permanently resides with that tenant, but only if such disability can 161 be expected to result in death or to last for a continuous period of at least 162 twelve months. 163 (2) With respect to tenants in common interest communities, this 164 section applies only to (A) a conversion tenant, as defined in subsection 165 (3) of section 47-283, who (i) is described in subdivision (1) of this 166 subsection, or (ii) is not described in subdivision (1) of this subsection 167 but, during a transition period, as defined in subsection (4) of section 47-168 283, is residing in a conversion condominium created after May 6, 1980, 169 or in any other conversion common interest community created after 170 December 31, 1982, or (iii) is not described in subdivision (1) of this 171 Raised Bill No. 5234 LCO No. 1738 7 of 14 subsection but is otherwise protected as a conversion tenant by public 172 act 80-370*, and (B) a tenant who is not a conversion tenant but who is 173 described in subdivision (1) of this subsection if his landlord owns five 174 or more dwelling units in the common interest community in which the 175 dwelling unit is located. 176 (3) As used in this section, "tenant" includes each resident of a mobile 177 manufactured home park, as defined in section 21-64, including a 178 resident who owns his own home, "landlord" includes a "licensee" and 179 an "owner" of a mobile manufactured home park, as defined in section 180 21-64, "complex" means two or more buildings on the same or 181 contiguous parcels of real property under the same ownership, and 182 "mobile manufactured home park" means a parcel of real property, or 183 contiguous parcels of real property under the same ownership, upon 184 which five or more mobile manufactured homes occupied for 185 residential purposes are located. 186 (b) (1) No landlord may bring an action of summary process or other 187 action to dispossess a tenant described in subsection (a) of this section 188 except for one or more of the following reasons: (A) Nonpayment of 189 rent; (B) refusal to agree to a fair and equitable rent increase, as defined 190 in subsection (c) of this section; (C) material noncompliance with section 191 47a-11 or subsection (b) of section 21-82, which materially affects the 192 health and safety of the other tenants or which materially affects the 193 physical condition of the premises; (D) voiding of the rental agreement 194 pursuant to section 47a-31, or material noncompliance with the rental 195 agreement; (E) material noncompliance with the rules and regulations 196 of the landlord adopted in accordance with section 47a-9 or 21-70; (F) 197 permanent removal by the landlord of the dwelling unit of such tenant 198 from the housing market; or (G) bona fide intention by the landlord to 199 use such dwelling unit as his principal residence. 200 (2) The ground stated in subparagraph (G) of subdivision (1) of this 201 subsection is not available to the owner of a dwelling unit in a common 202 interest community occupied by a conversion tenant. 203 Raised Bill No. 5234 LCO No. 1738 8 of 14 (3) A tenant may not be dispossessed for a reason described in 204 subparagraph (B), (F) or (G) of subdivision (1) of this subsection during 205 the term of any existing rental agreement. 206 (c) (1) The rent of a tenant protected by this section may be increased 207 only to the extent that such increase is fair and equitable, based on the 208 criteria set forth in section 7-148c. 209 (2) Any such tenant aggrieved by a rent increase or proposed rent 210 increase may file a complaint with the fair rent commission, if any, for 211 the town, city or borough where his dwelling unit or mobile 212 manufactured home park lot is located; or, if no such fair rent 213 commission exists, may bring an action in the Superior Court to contest 214 the increase. In any such court proceeding, the court shall determine 215 whether the rent increase is fair and equitable, based on the criteria set 216 forth in section 7-148c. 217 (d) A landlord, to determine whether a tenant is a protected tenant, 218 as described in subdivision (1) of subsection (a) of this section, may 219 request proof of such protected status. On such request, any tenant 220 claiming protection shall provide proof of the protected status within 221 thirty days. The proof shall include a statement of a physician or an 222 advanced practice registered nurse in the case of alleged blindness or 223 other physical disability. 224 (e) (1) On and after January 1, 2023, whenever a dwelling unit is 225 rented to, or a rental agreement is entered into or renewed with, any 226 tenant who is a protected tenant as described in subdivision (1) of 227 subsection (a) of this section, the landlord of such dwelling unit or such 228 landlord's agent shall provide such protected tenant with written notice 229 of the provisions of subsections (b) and (c) of this section in a form as 230 described in subdivision (2) of this subsection. 231 (2) Not later than January 1, 2023, the Commissioner of Housing shall 232 create a notice which shall be used by landlords, pursuant to 233 subdivision (1) of this subsection, to inform a protected tenant of the 234 rights provided under subsections (b) and (c) of this section. Such notice 235 Raised Bill No. 5234 LCO No. 1738 9 of 14 shall be a one-page, plain-language summary of such rights and shall be 236 available in languages other than English, as determined by the 237 commissioner. Not later than January 1, 2023, such notice shall be posted 238 on the Department of Housing Internet web site. 239 Sec. 5. (NEW) (Effective October 1, 2022) Any landlord of a dwelling 240 unit located in a building that is subject to a pending foreclosure 241 proceeding, or where a judgment has been entered against the owner or 242 landlord in a foreclosure proceeding, shall provide any prospective 243 tenant of such dwelling unit with written notice of such pending 244 foreclosure proceeding or judgment. 245 Sec. 6. (NEW) (Effective October 1, 2022) (a) Any owner of property 246 containing a dwelling unit that is subject to a pending foreclosure 247 proceeding shall provide written notice of such proceeding to the 248 Commissioner of Housing, the chief executive officer of the 249 municipality in which such property is located and to all tenants 250 residing in such dwelling unit, not later than ten days after receiving 251 notice of such foreclosure proceeding. Not later than ten business days 252 after receipt of any such notice, the Commissioner of Housing shall 253 cause such notice to be posted on the Internet web site of the 254 department. 255 (b) Any tenant receiving notice of such foreclosure proceeding may 256 file an action under section 47a-14h of the general statutes, as amended 257 by this act, to seek an order of the court appointing a receiver to collect 258 rent until the foreclosure proceeding is resolved. 259 Sec. 7. Subsections (a) and (b) of section 47a-14h of the general 260 statutes are repealed and the following is substituted in lieu thereof 261 (Effective October 1, 2022): 262 (a) Any tenant who claims that the landlord has failed to perform his 263 or her legal duties, as required by section 47a-7 or 47a-7a or subdivisions 264 (1) to (13), inclusive, of subsection (a) of section 21-82 or that the 265 property containing the dwelling unit that the tenant occupies is subject 266 to a foreclosure proceeding, as described in section 6 of this act, may 267 Raised Bill No. 5234 LCO No. 1738 10 of 14 institute an action in the superior court having jurisdiction over housing 268 matters in the judicial district in which such tenant resides to obtain the 269 relief authorized by this section, section 6 of this act and sections 47a-7a, 270 47a-20 and 47a-68. No tenant may institute an action under this section 271 if a valid notice to quit possession or occupancy based upon 272 nonpayment of rent has been served on such tenant prior to the 273 institution of an action under this section or if a valid notice to quit 274 possession or occupancy based on any other ground has been served on 275 such tenant prior to such tenant making the complaint to the agency 276 referred to in subsection (b) of this section, provided any such notice to 277 quit is still effective. 278 (b) The action shall be instituted by filing a complaint, under oath, 279 with the clerk of the court. The complaint shall allege (1) the name of the 280 tenant; (2) the name of the landlord or, in a complaint concerning section 281 6 of this act, the name of the owner; (3) the address of the premises; (4) 282 the nature of the alleged violation of section 47a-7 or 47a-7a or 283 subsection (a) of section 21-82 or a copy of the notice received under 284 section 6 of this act; and (5) the dates when rent is due under the rental 285 agreement and the amount due on such dates. [The] Unless the 286 complaint is filed pursuant to section 6 of this act, the complaint shall 287 also allege that at least twenty-one days prior to the date on which the 288 complaint is filed, the tenant made a complaint concerning the premises 289 to the municipal agency, in the municipality where the premises are 290 located, responsible for enforcement of the housing code or, if no 291 housing code exists, of the public health code, or to the agency 292 responsible for enforcement of the code or ordinance alleged to have 293 been violated, or to another municipal agency which referred such 294 complaint to the municipal agency responsible for enforcement of such 295 code or ordinance. In the case of a mobile manufactured home located 296 in a mobile manufactured home park, such complaint may be made to 297 the Commissioner of Consumer Protection. The entry fee shall be 298 twenty-five dollars, which may be waived in accordance with section 299 52-259b. Such entry fee shall be a taxable cost of the action. If, on the 300 same day, more than one tenant from the same building or complex 301 Raised Bill No. 5234 LCO No. 1738 11 of 14 institutes an action under this section and pays the entry fee for such 302 action, unless such fee is waived, the actions shall be treated as a single 303 action. No recognizance or bond shall be required. 304 Sec. 8. Subsection (e) of section 47a-14h of the general statutes is 305 repealed and the following is substituted in lieu thereof (Effective October 306 1, 2022): 307 (e) [The] (1) Except as provided in subdivision (2) of this subsection, 308 the complainant may seek and the court may order interim or final relief 309 including, but not limited to, the following: [(1)] (A) An order 310 compelling the landlord to comply with the landlord's duties under 311 local, state or federal law; [(2)] (B) an order appointing a receiver to 312 collect rent or to correct conditions in the property which violate local, 313 state or federal law; [(3)] (C) an order staying other proceedings 314 concerning the same property; [(4)] (D) an award of money damages, 315 which may include a retroactive abatement of rent paid pursuant to 316 subsection (h) of this section; and [(5)] (E) such other relief in law or 317 equity as the court may deem proper. If the court orders a retroactive 318 abatement of rent [pursuant to subdivision (4) of this subsection] under 319 subparagraph (D) of this subdivision and all or a portion of the tenant's 320 rent was deposited with the court pursuant to subsection (h) of this 321 section by a housing authority, municipality, state agency or similar 322 entity, any rent ordered to be returned shall be returned to the tenant 323 and such entity in proportion to the amount of rent each deposited with 324 the court pursuant to subsection (h) of this section. 325 (2) For a complaint filed only under section 6 of this act, the 326 complainant may seek, and the court may order relief limited to, an 327 order appointing a receiver to collect rent during the pendency of the 328 foreclosure proceeding. 329 Sec. 9. Section 47a-1 of the 2022 supplement to the general statutes is 330 repealed and the following is substituted in lieu thereof (Effective October 331 1, 2022): 332 As used in this chapter, sections 2, 5 and 6 of this act and sections 47a-333 Raised Bill No. 5234 LCO No. 1738 12 of 14 21, as amended by this act, 47a-23 to 47a-23c, inclusive, as amended by 334 this act, 47a-26a to 47a-26g, inclusive, 47a-35 to 47a-35b, inclusive, 47a-335 41a, 47a-43 and 47a-46 and section 47a-7b: 336 (a) "Action" includes recoupment, counterclaim, set-off, cause of 337 action and any other proceeding in which rights are determined, 338 including an action for possession. 339 (b) "Building and housing codes" include any law, ordinance or 340 governmental regulation concerning fitness for habitation or the 341 construction, maintenance, operation, occupancy, use or appearance of 342 any premises or dwelling unit. 343 (c) "Dwelling unit" means any house or building, or portion thereof, 344 which is occupied, is designed to be occupied, or is rented, leased or 345 hired out to be occupied, as a home or residence of one or more persons. 346 (d) "Landlord" means the owner, lessor or sublessor of the dwelling 347 unit, the building of which it is a part or the premises. 348 (e) "Owner" means one or more persons, jointly or severally, in whom 349 is vested (1) all or part of the legal title to property, or (2) all or part of 350 the beneficial ownership and a right to present use and enjoyment of the 351 premises and includes a mortgagee in possession. 352 (f) "Person" means an individual, corporation, limited liability 353 company, the state or any political subdivision thereof, or agency, 354 business trust, estate, trust, partnership or association, two or more 355 persons having a joint or common interest, and any other legal or 356 commercial entity. 357 (g) "Premises" means a dwelling unit and the structure of which it is 358 a part and facilities and appurtenances therein and grounds, areas and 359 facilities held out for the use of tenants generally or whose use is 360 promised to the tenant. 361 (h) "Rent" means all periodic payments to be made to the landlord 362 under the rental agreement. 363 Raised Bill No. 5234 LCO No. 1738 13 of 14 (i) "Rental agreement" means all agreements, written or oral, and 364 valid rules and regulations adopted under section 47a-9 or subsection 365 (d) of section 21-70 embodying the terms and conditions concerning the 366 use and occupancy of a dwelling unit or premises. 367 (j) "Roomer" means a person occupying a dwelling unit, which unit 368 does not include a refrigerator, stove, kitchen sink, toilet and shower or 369 bathtub and one or more of these facilities are used in common by other 370 occupants in the structure. 371 (k) "Single-family residence" means a structure maintained and used 372 as a single dwelling unit. Notwithstanding that a dwelling unit shares 373 one or more walls with another dwelling unit or has a common parking 374 facility, it is a single-family residence if it has direct access to a street or 375 thoroughfare and does not share heating facilities, hot water equipment 376 or any other essential facility or service with any other dwelling unit. 377 (l) "Tenant" means the lessee, sublessee or person entitled under a 378 rental agreement to occupy a dwelling unit or premises to the exclusion 379 of others or as is otherwise defined by law. 380 (m) "Tenement house" means any house or building, or portion 381 thereof, which is rented, leased or hired out to be occupied, or is 382 arranged or designed to be occupied, or is occupied, as the home or 383 residence of three or more families, living independently of each other, 384 and doing their cooking upon the premises, and having a common right 385 in the halls, stairways or yards. 386 Sec. 10. (NEW) (Effective October 1, 2022) As used in this section, 387 "landlord", "tenant", "dwelling unit" and "rental agreement" have the 388 same meaning as provided in section 47a-1 of the general statutes, as 389 amended by this act. Any landlord shall provide, at the time a tenant 390 executes a rental agreement for any residential dwelling unit owned by 391 the landlord, an application for admission as an elector to each tenant 392 who is eligible to apply for admission as an elector pursuant to section 393 9-12 of the general statutes. 394 Raised Bill No. 5234 LCO No. 1738 14 of 14 This act shall take effect as follows and shall amend the following sections: Section 1 October 1, 2022 47a-21(a) and (b) Sec. 2 October 1, 2022 New section Sec. 3 October 1, 2022 New section Sec. 4 October 1, 2022 47a-23c Sec. 5 October 1, 2022 New section Sec. 6 October 1, 2022 New section Sec. 7 October 1, 2022 47a-14h(a) and (b) Sec. 8 October 1, 2022 47a-14h(e) Sec. 9 October 1, 2022 47a-1 Sec. 10 October 1, 2022 New section Statement of Purpose: To (1) allow landlords to accept damage insurance in lieu of security deposits, (2) permit tenants to conduct a walk-through inspection of the dwelling unit prior to moving in, (3) limit fees a landlord may charge in connection with tenant screenings, (4) require landlords to provide written notice to certain protected tenants of their legal rights regarding evictions, (5) require landlords to provide notice of pending foreclosure actions to current and prospective tenants and allow current tenants to seek a court order appointing a receiver of rents, and (6) require that landlords provide tenants with voter registration forms upon the execution of any lease. [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.]