LCO No. 4512 1 of 6 General Assembly Raised Bill No. 6784 January Session, 2023 LCO No. 4512 Referred to Committee on INSURANCE AND REAL ESTATE Introduced by: (INS) AN ACT CONCERNING NONCOMPLIANT LANDLORDS. Be it enacted by the Senate and House of Representatives in General Assembly convened: Section 1. (NEW) (Effective October 1, 2023) (a) As used in this section: 1 (1) "Landlord" means any owner, lessor or sublessor of any rental 2 housing property development in this state; 3 (2) "Receiver" means any person or entity appointed by any court in 4 this state, subject to such court's direction, to take possession of and 5 manage any rental housing property development; and 6 (3) "Rental housing property development" means any privately 7 owned multifamily dwelling in this state consisting of not less than five 8 hundred units. 9 (b) In addition to other remedies available to any tenant under title 10 47a of the general statutes, any tenant of a rental housing property 11 development who claims that the landlord or owner of such rental 12 housing property development has failed to comply with any state or 13 local health or fire code may deliver a written notice to the applicable 14 Raised Bill No. 6784 LCO No. 4512 2 of 6 local code enforcement officer specifying the acts or omissions 15 constituting any state or local health or fire code violation. 16 (c) Such local code enforcement officer shall review each claimed 17 violation of any state or local health or fire code submitted pursuant to 18 subsection (b) of this section. Upon receipt of not less than twelve 19 claimed violations in any one calendar year submitted by tenants of the 20 same rental housing property development , such local code 21 enforcement officer may report such rental housing property 22 development to the Attorney General who may submit an application 23 for a private receivership in the superior court for the judicial district in 24 which the rental housing property development is located. 25 (d) The Attorney General may bring an action on behalf of tenants 26 occupying any rental housing property development in accordance 27 with the provisions of subsection (c) of this section, alleging under oath 28 the existence of housing or fire code violations. The complaint shall set 29 forth the address of the rental housing property development and a 30 description of the conditions alleged to be hazardous to life, health and 31 safety. Such action shall be brought in the superior court for the judicial 32 district in which the premises are located in the same manner as in a 33 civil process naming all landlords and owners of record as defendants. 34 There shall be no entry fee for such action. The Attorney General shall 35 cause a notice of the pendency of such action to be filed in the land 36 records of the town in which such premises are located. 37 (e) The Superior Court may refer any complaint filed in accordance 38 with the provisions of subsections (c) and (d) of this section to a referee 39 who shall hold a hearing thereon, except if the complaint alleges that 40 there is an imminent danger to the life, health and safety of the tenants, 41 the court shall issue an immediate ex parte order granting such relief as 42 the court deems appropriate, pending a full hearing to be held not later 43 than three days after such order is issued. Any retired judge of the 44 Superior Court shall be eligible to act as a referee. The referee shall take 45 such testimony as such referee deems material, view the rental housing 46 property development and, after the hearing, report such referee's 47 Raised Bill No. 6784 LCO No. 4512 3 of 6 findings and recommendations to the court. The court shall review such 48 report and enter judgment. Such report may be rejected for irregular or 49 improper conduct in the performance of the duties of such referee, in 50 which event the court shall appoint another referee to make a report. 51 There shall be no right to a jury trial in any of the proceedings. 52 (f) It shall be a sufficient defense to a proceeding under this section 53 for the landlord or owner to establish that such condition or conditions: 54 (1) Alleged in the petition did not in fact exist; (2) have been removed or 55 remedied; or (3) have been caused by any tenant residing at such rental 56 housing property development. 57 (g) If the court finds that the Attorney General has failed to establish 58 the allegations of the complaint or that the landlord or owner 59 affirmatively established any defense specified in subsection (f) of this 60 section, the court shall render a judgment dismissing the complaint. 61 (h) If the court finds that the Attorney General has proved the 62 allegations of the complaint and that no defense as specified in 63 subsection (f) of this section has been affirmatively established by the 64 landlord or owner, the court shall render a judgment directing that: (1) 65 The rents due on the date of entry of such judgment and rents to become 66 due subsequent thereto from all tenants occupying such property be 67 deposited with a private receiver appointed by the court; (2) the receiver 68 apply such rents and, to the extent necessary, remedy the condition or 69 conditions alleged in the petition; (3) when such condition or conditions 70 have been remedied in accordance with the judgment, any remaining 71 surplus be turned over to the landlord or owner, together with a 72 complete accounting of the rents deposited and the costs incurred; and 73 (4) granting such other and further relief as the court may deem just and 74 proper. A certified copy of the judgment shall be served upon the 75 Attorney General and each tenant occupying such rental housing 76 property development by registered mail. Any receiver appointed 77 pursuant to this subsection may charge such owner or landlord of such 78 rental housing property development a fee that shall not exceed ten per 79 cent of the total monthly rental income of such rental housing property 80 Raised Bill No. 6784 LCO No. 4512 4 of 6 development to carry out the requirements set forth in this section. 81 (i) The right of the landlord or owner of such rental housing property 82 development to collect such rent from any tenant on or after the date of 83 entry of a judgment as provided in subsection (h) of this section shall be 84 void and unenforceable to the extent that such tenants have deposited 85 such rent with a private receiver in accordance with the terms of the 86 judgment rendered under subsection (h) of this section, regardless of 87 whether such right of the landlord or owner arises from a lease, deed, 88 contract, agreement or understanding, or otherwise. It shall be a valid 89 defense in any action or proceeding against such tenants to recover 90 possession of real property for nonpayment of rent or for use or 91 occupation to prove that such rent alleged to be unpaid was deposited 92 with a private receiver in accordance with the terms of a judgment 93 entered under subsection (h) of this section. 94 (j) If the court finds that the facts alleged in the complaint have been 95 affirmatively established, that no defense thereto specified in subsection 96 (f) of this section has been affirmatively established by the landlord or 97 owner and that the facts alleged in the complaint warrant the granting 98 of the relief sought, the court, in lieu of rendering judgment, may issue 99 an order permitting the landlord or owner to remove or remedy the 100 conditions in the complaint found to exist if such landlord or owner (1) 101 demonstrates the ability to undertake the work required, and (2) posts 102 security for the performance of such work required within the time and 103 in the manner and amount deemed necessary by the court. 104 (k) If, after the issuance of an order issued pursuant to subsection (j) 105 of this section, the Attorney General, upon investigation, determines 106 that such person permitted to perform the work is not proceeding with 107 due diligence, the Attorney General shall apply to the court for a hearing 108 to determine whether judgment should be rendered immediately as 109 provided in subsection (l) of this section. 110 (l) If, upon a hearing authorized under subsection (k) of this section, 111 the court determines that the person permitted to perform such work is 112 Raised Bill No. 6784 LCO No. 4512 5 of 6 not proceeding with due diligence, the court shall render a judgment 113 appointing a receiver as authorized in subsection (h) of this section. The 114 judgment shall direct such receiver to apply the security posted by such 115 person to remove or remedy any condition specified in the petition. If 116 the amount of such security is insufficient for such purpose, the 117 judgment shall direct the deposit of rents with such receiver as 118 authorized in subsection (h) of this section to the extent of such 119 deficiency. If such security exceeds the amount required to remove or 120 remedy such condition or conditions, the judgment shall direct such 121 receiver to file with the court, upon completion of the work, a full 122 accounting of the amount of such security and the expenditures made 123 pursuant to such judgment, and to turn over such surplus to the owner 124 or landlord who posted security, together with a copy of such 125 accounting. 126 (m) Any such receiver shall be discharged upon rendering a complete 127 accounting to the court when (1) such condition has been removed, (2) 128 the costs authorized by subsections (a) to (l), inclusive, of this section 129 have been paid or reimbursed from the rents and income of the 130 property, and (3) the surplus money, if any, has been paid over to the 131 landlord or owner as the court may direct. The receiver may be 132 discharged at any time upon filing such receiver's accounting as 133 receiver. Upon the removal of such condition, the landlord or owner 134 may apply for the discharge of the receiver upon payment to such 135 receiver of all moneys expended by the receiver for removal of such 136 condition and all other costs authorized by this section that have not 137 been paid or reimbursed from the rents and income of the property. 138 This act shall take effect as follows and shall amend the following sections: Section 1 October 1, 2023 New section Statement of Purpose: To establish a process for the appointment of private receiverships to oversee rental housing property developments where landlords or owners fail to comply with state and local health and fire codes. Raised Bill No. 6784 LCO No. 4512 6 of 6 [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.]