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General Assembly Raised Bill No. 5344
February Session, 2022
LCO No. 1483
Referred to Committee on HOUSING
Introduced by:
(HSG)
AN ACT CONCERNING ADVANCE RENTAL PAYMENTS.
Be it enacted by the Senate and House of Representatives in General
Assembly convened:
Section 1. Section 47a-21 of the 2022 supplement to the general 1
statutes is repealed and the following is substituted in lieu thereof 2
(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)] (h) of this section, compounded annually to 6
the extent applicable. 7
(2) "Commissioner" means the Banking Commissioner. 8
(3) "Escrow account" means any account at a financial institution 9
which is not subject to execution by the creditors of the escrow agent 10
and includes a clients' funds account. 11
(4) "Escrow agent" means the person in whose name an escrow 12
account is maintained. 13 Raised Bill No. 5344
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(5) "Financial institution" means any state bank and trust company, 14
national bank, savings bank, federal savings bank, savings and loan 15
association, and federal savings and loan association that is located in 16
this state. 17
(6) "Forwarding address" means the address to which a security 18
deposit may be mailed for delivery to a former tenant. 19
(7) "Landlord" means any landlord of residential real property, and 20
includes (A) any receiver; (B) any successor; and (C) any tenant who 21
sublets his premises. 22
(8) "Receiver" means any person who is appointed or authorized by 23
any state, federal or probate court to receive rents from tenants, and 24
includes trustees, executors, administrators, guardians, conservators, 25
receivers, and receivers of rent. 26
(9) "Rent receiver" means a receiver who lacks court authorization to 27
return security deposits and to inspect the premises of tenants and 28
former tenants. 29
(10) "Residential real property" means real property containing one 30
or more residential units, including residential units not owned by the 31
landlord, and containing one or more tenants who paid a security 32
deposit. 33
(11) "Security deposit" means any advance rental payment, or any 34
installment payment collected pursuant to section 47a-22a, except an 35
advance payment for the first month's rent or a deposit for a key or any 36
special equipment. 37
(12) "Successor" means any person who succeeds to a landlord's 38
interest whether by purchase, foreclosure or otherwise and includes a 39
receiver. 40
(13) "Tenant" means a tenant, as defined in section 47a-1, or a resident, 41
as defined in section 21-64. 42 Raised Bill No. 5344
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(14) "Tenant's obligations" means (A) the amount of any rental or 43
utility payment due the landlord from a tenant; (B) a tenant's obligations 44
under the provisions of section 47a-11; and (C) the actual reasonable cost 45
of changing the locks of the dwelling unit pursuant to section 47a-7b, if 46
the tenant has not paid such cost. 47
[(b) (1) In the case of a tenant under sixty-two years of age, a landlord 48
shall not demand a security deposit in an amount that exceeds two 49
months' rent. 50
(2) In the case of a tenant sixty-two years of age or older, a landlord 51
shall not demand a security deposit in an amount that exceeds one 52
month's rent. Any landlord who has received a security deposit in an 53
amount that exceeds one month's rent from a tenant who becomes sixty-54
two years of age after paying such security deposit shall return the 55
portion of such security deposit that exceeds one month's rent to the 56
tenant upon the tenant's request.] 57
[(c)] (b) Any security deposit paid by a tenant shall remain the 58
property of such tenant in which the landlord shall have a security 59
interest, as defined in subdivision (35) of subsection (b) of section 42a-1-60
201, to secure such tenant's obligations. A security deposit shall be 61
exempt from attachment and execution by the creditors of the landlord 62
and shall not be considered part of the estate of the landlord in any legal 63
proceeding. Any voluntary or involuntary transfer of a landlord's 64
interest in residential real property to a successor shall constitute an 65
assignment to such successor of such landlord's security interest in all 66
security deposits paid by tenants of such transferred residential real 67
property. 68
[(d)] (c) (1) Not later than the time specified in subdivision (2) of this 69
subsection, the person who is the landlord at the time a tenancy is 70
terminated, other than a rent receiver, shall pay to the tenant or former 71
tenant: (A) The amount of any security deposit that was deposited by 72
the tenant with the person who was landlord at the time such security 73
deposit was deposited less the value of any damages that any person 74 Raised Bill No. 5344
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who was a landlord of such premises at any time during the tenancy of 75
such tenant has suffered as a result of such tenant's failure to comply 76
with such tenant's obligations; and (B) any accrued interest. If the 77
landlord at the time of termination of a tenancy is a rent receiver, such 78
rent receiver shall return security deposits in accordance with the 79
provisions of subdivision (3) of this subsection. 80
(2) Upon termination of a tenancy, any tenant may notify the landlord 81
in writing of such tenant's forwarding address. Not later than thirty 82
days after termination of a tenancy or fifteen days after receiving written 83
notification of such tenant's forwarding address, whichever is later, each 84
landlord other than a rent receiver shall deliver to the tenant or former 85
tenant at such forwarding address either (A) the full amount of the 86
security deposit paid by such tenant plus accrued interest, or (B) the 87
balance of such security deposit and accrued interest after deduction for 88
any damages suffered by such landlord by reason of such tenant's 89
failure to comply with such tenant's obligations, together with a written 90
statement itemizing the nature and amount of such damages. Any 91
landlord who violates any provision of this subsection shall be liable for 92
twice the amount of any security deposit paid by such tenant, except 93
that, if the only violation is the failure to deliver the accrued interest, 94
such landlord shall be liable for ten dollars or twice the amount of the 95
accrued interest, whichever is greater. 96
(3) (A) Any receiver who is authorized by a court to return security 97
deposits and to inspect the premises of any tenant shall pay security 98
deposits and accrued interest in accordance with the provisions of 99
subdivisions (1) and (2) of this subsection from the operating income of 100
such receivership to the extent that any such payments exceed the 101
amount in any escrow accounts for such tenants. (B) Any rent receiver 102
shall present any claim by any tenant for return of a security deposit to 103
the court which authorized the rent receiver. Such court shall determine 104
the validity of any such claim and shall direct such rent receiver to pay 105
from the escrow account or from the operating income of such property 106
the amount due such tenant as determined by such court. 107 Raised Bill No. 5344
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[(e)] (d) A successor, other than a receiver, shall be liable for the 108
claims of tenants of such property for return of any part of such security 109
deposit which is or becomes due to such tenant during the time such 110
successor is a landlord. A receiver's liability for payment of security 111
deposits and interest under this section shall be limited to the balance in 112
any escrow account for such tenants maintained by such receiver in such 113
receivership in accordance with subsection [(h)] (g) of this section and 114
to the operating income generated in such receivership. 115
[(f)] (e) Any landlord who is not a resident of this state shall appoint 116
in writing the Secretary of the State as the landlord's attorney upon 117
whom all process in any action or proceeding against such landlord may 118
be served. 119
[(g)] (f) Any person may bring an action in replevin or for money 120
damages in any court of competent jurisdiction to reclaim any part of 121
such person's security deposit which may be due. This section does not 122
preclude the landlord or tenant from recovering other damages to 123
which the landlord or tenant may be entitled. 124
[(h)] (g) (1) Each landlord shall immediately deposit the entire 125
amount of any security deposit received by such landlord from each 126
tenant into one or more escrow accounts established or maintained in a 127
financial institution for the benefit of each tenant. Each landlord shall 128
maintain each such account as escrow agent and shall not withdraw 129
funds from such account except as provided in subdivision (2) of this 130
subsection. 131
(2) The escrow agent may withdraw funds from an escrow account 132
to: (A) Disburse the amount of any security deposit and accrued interest 133
due to a tenant pursuant to subsection [(d)] (c) of this section; (B) 134
disburse interest to a tenant pursuant to subsection [(i)] (h) of this 135
section; (C) make a transfer of the entire amount of certain security 136
deposits pursuant to subdivision (3) of this subsection; (D) retain 137
interest credited to the account in excess of the amount of interest 138
payable to the tenant under subsection [(i)] (h) of this section; (E) retain 139 Raised Bill No. 5344
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all or any part of a security deposit and accrued interest after 140
termination of tenancy equal to the damages suffered by the landlord 141
by reason of the tenant's failure to comply with such tenant's 142
obligations; (F) disburse all or any part of the security deposit to a tenant 143
at any time during tenancy; or (G) transfer such funds to another 144
financial institution or escrow account, provided such funds remain 145
continuously in an escrow account. 146
(3) (A) Whenever any real estate is voluntarily or involuntarily 147
transferred from a landlord, other than a receiver, to a successor, 148
including a receiver, such landlord shall withdraw from the escrow 149
account and deliver to the successor the entire amount of security 150
deposits paid by tenants of the property being transferred, plus any 151
interest accrued pursuant to subsection [(i)] (h) of this section. If at the 152
time of transfer of such real estate the funds in such account are 153
commingled with security deposits paid by tenants in real estate not 154
being transferred to such successor, and if at such time the funds in such 155
account are less than the amount of security deposits paid by all tenants 156
whose security deposits are contained in such account, such landlord 157
shall deliver to such successor a pro rata share of security deposits paid 158
by tenants of the real estate being transferred to such successor. (B) 159
Whenever any real estate is transferred from a receiver to a successor, 160
such receiver shall dispose of the escrow accounts as ordered by the 161
court which appointed such receiver. The order of such court shall 162
provide for the priority of the present and future rights of tenants to 163
security deposits paid by them over the rights of any secured or 164
unsecured creditor of any person and shall provide that the funds in 165
such account shall be delivered to the successor of such receiver for 166
immediate deposit in an escrow account for tenants who paid security 167
deposits. 168
(4) (A) The landlord shall provide each tenant with a written notice 169
stating the amount held for the benefit of the tenant and the name and 170
address of the financial institution at which the tenant's security deposit 171
is being held not later than thirty days after the landlord receives a 172
security deposit from the tenant or the tenant's previous landlord or 173 Raised Bill No. 5344
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transfers the security deposit to another financial institution or escrow 174
account. 175
(B) If the commissioner makes a written request to the landlord for 176
any information related to a tenant's security deposit, including the 177
name of each financial institution in which any escrow account is 178
maintained and the account number of each escrow account, the 179
landlord shall provide such information to the commissioner not later 180
than seven days after the request is made. 181
[(i)] (h) On and after July 1, 1993, each landlord other than a landlord 182
of a residential unit in any building owned or controlled by any 183
educational institution and used by such institution for the purpose of 184
housing students of such institution and their families, and each 185
landlord or owner of a mobile manufactured home or of a mobile 186
manufactured home space or lot or park, as such terms are defined in 187
subdivisions (1), (2) and (3) of section 21-64, shall pay interest on each 188
security deposit received by such landlord at a rate of not less than the 189
average rate paid, as of December 30, 1992, on savings deposits by 190
insured commercial banks as published in the Federal Reserve Board 191
Bulletin rounded to the nearest one-tenth of one percentage point, 192
except in no event shall the rate be less than one and one-half per cent. 193
On and after January 1, 1994, the rate for each calendar year shall be not 194
less than the deposit index, determined under this section as it was in 195
effect during such year. On and after January 1, 2012, the rate for each 196
calendar year shall be not less than the deposit index, as defined in 197
section 36a-26, for that year. On the anniversary date of the tenancy and 198
annually thereafter, such interest shall be paid to the tenant or resident 199
or credited toward the next rental payment due from the tenant or 200
resident, as the landlord or owner shall determine. If the tenancy is 201
terminated before the anniversary date of such tenancy, or if the 202
landlord or owner returns all or part of a security deposit prior to 203
termination of the tenancy, the landlord or owner shall pay the accrued 204
interest to the tenant or resident not later than thirty days after such 205
termination or return. Interest shall not be paid to a tenant for any 206
month in which the tenant has been delinquent for more than ten days 207 Raised Bill No. 5344
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in the payment of any monthly rent, unless the landlord imposes a late 208
charge for such delinquency. No landlord shall increase the rent due 209
from a tenant because of the requirement that the landlord pay on 210
interest the security deposit. 211
[(j)] (i) (1) Except as provided in subdivision (2) of this subsection, the 212
commissioner may receive and investigate complaints regarding any 213
alleged violation of [subsections (b), (d), (h) or (i)] subsection (c), (g) or 214
(h) of this section. For the purposes of such investigation, any person 215
who is or was a landlord shall be subject to the provisions of section 36a-216
17. If the commissioner determines that any landlord has violated any 217
provision of this section over which the commissioner has jurisdiction, 218
the commissioner may, in accordance with section 36a-52, order such 219
person to cease and desist from such practices and to comply with the 220
provisions of this section. 221
(2) The commissioner shall not have jurisdiction over (A) the failure 222
of a landlord to pay interest to a tenant annually under subsection [(i)] 223
(h) of this section, or (B) the refusal or other failure of the landlord to 224
return all or part of the security deposit if such failure results from the 225
landlord's good faith claim that such landlord has suffered damages as 226
a result of a tenant's failure to comply with such tenant's obligations, 227
regardless of whether the existence or amount of the alleged damages is 228
disputed by the tenant. For purposes of this section, "good faith claim" 229
means a claim for actual damages suffered by the landlord for which 230
written notification of such damages has been provided to the tenant in 231
accordance with the provisions of subdivision (2) of subsection [(d)] (c) 232
of this section. 233
(3) The commissioner may adopt regulations, in accordance with 234
chapter 54, to carry out the purposes of this section. 235
[(k)] (j) (1) Any person who is a landlord at the time of termination of 236
a tenancy and who knowingly and wilfully fails to pay all or any part of 237
a security deposit when due shall be subject to a fine of not more than 238
two hundred fifty dollars for each offense, provided it shall be an 239 Raised Bill No. 5344
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affirmative defense under this subdivision that such failure was caused 240
by such landlord's good faith belief that he was entitled to deduct the 241
value of damages he has suffered as a result of such tenant's failure to 242
comply with such tenant's obligations. 243
(2) Any person who knowingly and wilfully violates the provisions 244
of subsection [(h)] (g) of this section on or after October 1, 1979, shall be 245
subject to a fine of not more than five hundred dollars or imprisonment 246
of not more than thirty days or both for each offense. It shall be an 247
affirmative defense under the provisions of this subdivision that at the 248
time of the offense, such person leased residential real property to fewer 249
than four tenants who paid a security deposit. 250
(3) Any person who is a landlord at the time an interest payment is 251
due under the provisions of subsection [(i)] (h) of this section and who 252
knowingly and wilfully violates the provisions of such subsection shall 253
be subject to a fine of not more than one hundred dollars for each 254
offense. 255
(4) No financial institution shall be liable for any violation of this 256
section except for any violation in its capacity as a landlord. 257
[(l)] (k) Nothing in this section shall be construed as a limitation upon: 258
(1) The power or authority of the state, the Attorney General or the 259
commissioner to seek administrative, legal or equitable relief permitted 260
by the general statutes or at common law; or (2) the right of any tenant 261
to bring a civil action permitted by the general statutes or at common 262
law. 263
Sec. 2. Subsection (c) of section 17b-93 of the 2022 supplement to the 264
general statutes is repealed and the following is substituted in lieu 265
thereof (Effective October 1, 2022): 266
(c) No claim, except a claim required to be made under federal law, 267
shall be made, or lien applied, against any payment made pursuant to 268
chapter 135, any payment made pursuant to section 47-88d or 47-287, 269
any moneys received as a settlement or award in a housing or 270 Raised Bill No. 5344
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employment or public accommodation discrimination case or in any 271
action brought by a tenant or occupant or former tenant or occupant 272
against an owner or lessor of a residential premises or manufactured 273
mobile home park, any court-ordered retroactive rent abatement, 274
including any made pursuant to subsection (e) of section 47a-14h or 275
section 47a-4a, 47a-5 or 47a-57, or any security deposit refund pursuant 276
to subsection [(d)] (c) of section 47a-21, as amended by this act, as paid 277
to a beneficiary of assistance under the state supplement program, 278
medical assistance program, aid to families with dependent children 279
program, temporary family assistance program or state-administered 280
general assistance program or paid to any person who has been 281
supported wholly, or in part, by the state, in accordance with section 282
17b-223, in a humane institution. 283
Sec. 3. Section 17b-114 of the general statutes is repealed and the 284
following is substituted in lieu thereof (Effective October 1, 2022): 285
Subject to federal approval, as a condition of receiving a special need 286
benefit to cover the cost of a security deposit, a recipient of assistance 287
under the temporary family assistance program or the state -288
administered general assistance program or the program of state 289
supplementation to the Supplemental Security Income Program shall 290
sign an agreement with the Commissioner of Social Services stating that 291
the security deposit and accrued interest, less the value of any damages 292
suffered by the landlord due to the recipient's failure to comply with his 293
obligations as a tenant pursuant to section 47a-21, as amended by this 294
act, shall be paid by the landlord to the Department of Social Services 295
when the recipient vacates the housing for which the deposit is paid. 296
The recipient shall notify the commissioner of the date such housing is 297
vacated. If the landlord claims the right to withhold all or part of the 298
security deposit or interest, the landlord shall comply with the 299
applicable provisions of section 47a-21, as amended by this act, except 300
any notice required shall be sent to the tenant and to the Commissioner 301
of Social Services. If the landlord fails to return the deposit to the 302
Department of Social Services or to account to the department for any 303
amount withheld within the time limits set forth in section 47a-21, as 304 Raised Bill No. 5344
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amended by this act, the department may refer the matter to the 305
Department of Administrative Services for payment to the state of the 306
deposit, interest and such other damages as are available to tenants 307
under said section. Notwithstanding the provisions of subsection [(d)] 308
(c) of section 47a-21, as amended by this act, for purposes of taking such 309
action on behalf of the state, the Department of Administrative Services 310
is not required to give notice of a forwarding address. A recipient of a 311
special need benefit to cover the cost of a security deposit who agrees 312
the deposit shall be returned to the department pursuant to this section 313
shall be eligible for a subsequent such special need benefit at any time 314
the recipient meets the eligibility criteria for the special need benefit for 315
emergency housing set forth in subsection (a) of section 17b-808. 316
Sec. 4. Subsection (c) of section 17b-129 of the general statutes is 317
repealed and the following is substituted in lieu thereof (Effective October 318
1, 2022): 319
(c) No claim shall be made, or lien applied, against any payment 320
made pursuant to chapter 135, any payment made pursuant to section 321
47-88d or 47-287, any moneys received as a settlement or award in a 322
housing or employment or public accommodation discrimination case, 323
any court-ordered retroactive rent abatement, including any made 324
pursuant to subsection (e) of section 47a-14h, or section 47a-4a, 47a-5 or 325
47a-57, or any security deposit refund pursuant to subsection [(d)] (c) of 326
section 47a-21, as amended by this act, paid to a beneficiary of assistance 327
under sections 17b-122, 17b-124 to 17b-132, inclusive, 17b-136 to 17b-328
138, inclusive, 17b-194 to 17b-197, inclusive, 17b-222 to 17b-250, 329
inclusive, 17b-263, 17b-340 to 17b-350, inclusive, 17b-689b and 17b-743 330
to 17b-747, inclusive. 331
Sec. 5. Subdivision (1) of subsection (a) of section 36a-32 of the general 332
statutes is repealed and the following is substituted in lieu thereof 333
(Effective October 1, 2022): 334
(1) The bank's record of offering escrow accounts for purposes of 335
compliance with subsection [(h)] (g) of section 47a-21, as amended by 336 Raised Bill No. 5344
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this act; 337
Sec. 6. Subsection (d) of section 51-15 of the 2022 supplement to the 338
general statutes, as amended by section 13 of public act 21-197, is 339
repealed and the following is substituted in lieu thereof (Effective October 340
1, 2022): 341
(d) The procedure for the hearing and determination of small claims 342
as the same may be prescribed, from time to time, by the judges of the 343
Superior Court shall be used in all small claims sessions of the court. The 344
small claims procedure shall only be applicable to (1) all actions 345
claiming money damages not in excess of five thousand dollars, except 346
such procedure shall not be applicable to actions of libel and slander, 347
and (2) actions claiming loss or damages not in excess of fifteen 348
thousand dollars sustained by reason of (A) performance of, or offer to 349
perform, home improvement, as defined in section 20-419, by a 350
contractor holding a certificate under chapter 400, or (B) a contract for 351
new home construction with a new home construction contractor 352
holding a certificate under chapter 399a. If an action is brought in the 353
small claims session by a tenant pursuant to subsection [(g)] (f) of section 354
47a-21, as amended by this act, to reclaim any part of a security deposit 355
which may be due, the judicial authority hearing the action may award 356
to the tenant the damages authorized by subsection [(d)] (c) of said 357
section and, if authorized by the rental agreement or any provision of 358
the general statutes, costs, notwithstanding that the amount of such 359
damages and costs, in the aggregate, exceeds the jurisdictional 360
monetary limit established by subdivision (1) of this subsection. If a 361
motion is filed to transfer a small claims matter to the regular docket in 362
the court, the moving party shall pay the fee prescribed by section 52-363
259. The Attorney General or an assistant attorney general, or the head 364
of any state agency or his or her authorized representative, while acting 365
in his or her official capacity shall not be required to pay any small 366
claims court fee. There shall be no charge for copies of service on 367
defendants in small claims matters. 368 Raised Bill No. 5344
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This act shall take effect as follows and shall amend the following
sections:
Section 1 October 1, 2022 47a-21
Sec. 2 October 1, 2022 17b-93(c)
Sec. 3 October 1, 2022 17b-114
Sec. 4 October 1, 2022 17b-129(c)
Sec. 5 October 1, 2022 36a-32(a)(1)
Sec. 6 October 1, 2022 51-15(d)
Statement of Purpose:
To remove the limits on the amounts of advance rental payments a
landlord may charge a tenant.
[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.]