Connecticut 2023 2023 Regular Session

Connecticut House Bill HB06784 Introduced / Bill

Filed 02/22/2023

                       
 
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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 
 
 
 
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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 
 
 
 
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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 
 
 
 
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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 
 
 
 
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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 
 
 
 
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[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.]