Researcher: SM Page 1 4/4/22
OLR Bill Analysis
sHB 5234
AN ACT CONCERNING THE RIGHTS AND RESPONSIBILITIES OF
LANDLORDS AND TENANTS.
SUMMARY
This bill makes a number of changes in laws about landlords and
tenants.
The bill allows landlords to accept certain bonds and commercial
insurance coverage (i.e., "damage insurance coverage") in place of
traditional security deposits. The bill establishes limits to the amount of
damage insurance coverage landlords may demand that align with
existing caps on security deposits. Among other things, the bill also
establishes criteria for these policies and the companies that offer them.
Beginning January 1, 2023, the bill requires landlords to give tenants
the opportunity to request and complete a pre-occupancy "walk-
through" of a dwelling unit after or at the time of entering into a rental
agreement. The bill prohibits a landlord from keeping any portion of a
tenant's security deposit or seeking payment for conditions specifically
identified during the walk-through. Rental agreements entered into
before January 1, 2023, are exempt from the bill's walk-through
requirements.
The bill limits rental application-related fees that landlords may
demand from prospective tenants to reimbursements for tenant
screening reports that cannot exceed $20. It requires landlords to (1)
provide tenants with these reports and a receipt or invoice and (2) waive
the fee if the prospective tenant provides a recent tenant screening
report that is satisfactory to the landlord.
Beginning January 1, 2023, the bill requires landlords or their agents
to provide certain "protected tenants" with a written Department of
Housing (DOH) notice summarizing applicable protections when a unit 2022HB-05234-R000273-BA.DOCX
Researcher: SM Page 2 4/4/22
is rented to, or a rental agreement is entered into or renewed with, them.
The bill also requires landlords who own the dwelling unit to provide
all tenants who are eligible to apply for admission as an elector with a
voter registration application when the tenant executes a residential
rental agreement.
Finally, the bill makes technical and conforming changes.
EFFECTIVE DATE: October 1, 2022
§ 1 — DAMAGE INSURANCE COVERAGE FOR RENTERS
The bill allows landlords to accept "damage insurance coverage" in
place of security deposits and designate certain insurance companies
from which he or she will accept policies. It requires lease agreements
between landlords and tenants to identify these accepted insurance
companies.
Under the bill, damage insurance means a bond or commercial
insurance coverage, in an amount specified in the rental agreement and
not to exceed the existing caps on security deposits, to secure the
tenant's performance of the rental agreement's terms and conditions. By
law, landlords cannot demand a security deposit that exceeds (1) two
months' rent for tenants under age 62 or (2) one month's rent for tenants
age 62 or older. The bill applies these caps to damage insurance
coverage.
The bill requires a landlord, after previously accepting a tenant's
damage insurance coverage exceeding one month's rent in place of a
security deposit, to later accept replacement damage insurance from the
tenant in amount up to one month's rent if the tenant subsequently
turned 62-years-old during his or her lease agreement.
Under the bill, damage insurance coverage policies must meet the
following criteria:
1. be provided by an insurance company that (a) is licensed or
authorized to do business in the state and (b) agrees to approve 2022HB-05234-R000273-BA.DOCX
Researcher: SM Page 3 4/4/22
or deny claim payments in accordance with the Insurance
Department's regulations;
2. permit monthly payment of premiums unless the tenant selects a
different payment schedule;
3. take effect when a tenant makes the first premium payment and
remain effective for the entire lease time with certain exceptions;
and
4. provide per claim coverage not less than the amount the landlord
would have required for the security deposit.
Additionally, the bill requires insurance companies that provide
damage insurance coverage to provide landlords with written notice
within 10 days after a tenant cancels a policy or allows it to lapse.
Finally, the bill allows tenants that have opted to use a damage
insurance coverage policy to cancel it at any time and instead pay the
full security deposit their landlord requires. In such a case, the bill
prohibits a landlord from altering the lease terms. (Presumably, this
means altering the terms other than the security deposit provision.)
§ 2 — PRE-OCCUPANCY WALK -THROUGHS
Beginning January 1, 2023, the bill requires landlords to give tenants
the opportunity to request and complete a pre-occupancy "walk-
through" of a dwelling unit after or at the time of entering into a rental
agreement.
Under the bill, a "walk-through" means a joint, in-person inspection
of a dwelling unit by the landlord and tenant or their designees to note
and list the unit's existing conditions, defects, or damages using a DOH
checklist. The bill requires the DOH commissioner to prepare this
standardized, pre-occupancy walk-through checklist and make it
available on DOH's website by December 1, 2023. Following a
walkthrough, landlords and tenants or their designees must each sign
and receive duplicate copies of the checklist. 2022HB-05234-R000273-BA.DOCX
Researcher: SM Page 4 4/4/22
When a tenant vacates the dwelling unit, the bill prohibits a landlord
from keeping any portion of a tenant's security deposit or seeking
payment for a condition, defect, or damage noted in the preoccupancy
walk-through checklist. In administrative or judicial proceedings, this
checklist is admissible, but not conclusive, as evidence of the unit’s
condition at the beginning of a tenant's occupancy.
§ 3 — LIMITS ON APPLICATION FEES FOR PROSPECTIVE
TENANTS
The bill prohibits landlords from requiring prospective tenants to pay
rental application-related fees or make any other payments before or at
the start of tenancy unless the fee is for a tenant screening report. Under
the bill, a "tenant screening report" means a credit report, a criminal
background report, an employment history report, a rental history
report, or any combination of these that a landlord uses to determine a
prospective tenant’s suitability.
The bill allows landlords to charge prospective tenants a fee or fees
to reimburse costs associated with conducting a tenant screening report.
The cumulative fee cannot exceed $20 or the actual cost of the report,
whichever is less. Additionally, the bill requires landlords to waive the
tenant screening report fee if a prospective tenant provides a copy of a
tenant screening report that (1) is satisfactory to the landlord and (2) was
conducted within 30 days of the tenant's rental application.
§ 4 — REQUIRED NOTICE FOR PROTECTED TENANTS
By law, "protected tenants" are generally those residing in certain
buildings or mobile manufactured home parks who are (1) at least age
62 or (2) individuals with disabilities. Existing law prohibits protected
tenants from being evicted solely for their lease expiring (i.e., lapse of
time). It also requires that their rent only be increased by an amount that
is fair and equitable and allows those aggrieved by a rent increase, and
residing in a municipality without a fair rent commission, to bring
action to contest the increase in Superior Court. Beginning January 1,
2023, the bill requires landlords or their agents to provide protected
tenants with a written DOH notice summarizing these provisions when
a unit is rented to, or a rental agreement is entered into or renewed with, 2022HB-05234-R000273-BA.DOCX
Researcher: SM Page 5 4/4/22
them.
Under the bill, the DOH commissioner must create a one-page, plain-
language summary of protected tenants' rights and post it on the
department website by January 1, 2023. The bill requires that the notice
be available in other languages in addition to English, as determined by
the commissioner.
BACKGROUND
Related Bill
HB 5233 (File 107), favorably reported by the Housing Committee,
extends protections available to “protected tenants” to all tenants in
those buildings.
COMMITTEE ACTION
Housing Committee
Joint Favorable Substitute
Yea 15 Nay 0 (03/15/2022)