LCO \\PRDFS1\HCOUSERS\BARRYJN\WS\2023HB-06784-R01- HB.docx 1 of 6 General Assembly Substitute Bill No. 6784 January Session, 2023 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 1 section: 2 (1) "Complex" means not less than two residential buildings on the 3 same or contiguous parcels of real property under the same 4 ownership; 5 (2) "Landlord" means any owner, lessor or sublessor of any rental 6 housing property development in this state; 7 (3) "Receiver" means any person or entity appointed by any court in 8 this state, subject to such court's direction, to take possession of and 9 manage any rental housing property development; and 10 (4) "Rental housing property development" means any privately 11 owned multifamily development or complex in this state consisting of 12 not less than five hundred units. 13 (b) Notwithstanding other remedies available to any tenant under 14 chapter 833a of the general statutes, any tenant of a rental housing 15 property development who claims that the landlord or owner of such 16 rental housing property development has failed to comply with any 17 Substitute Bill No. 6784 LCO {\\PRDFS1\HCOUSERS\BARRYJN\WS\2023HB-06784- R01-HB.docx } 2 of 6 state or local housing, health, safety, building or fire code may deliver 18 a written notice to the applicable local code enforcement officer 19 specifying the acts or omissions constituting such housing, health, 20 safety, building or fire code violation. 21 (c) The applicable local code enforcement officer shall (1) review 22 and investigate each claimed violation of any state or local housing, 23 health, safety, building or fire code submitted pursuant to subsection 24 (b) of this section, (2) maintain written documentation of each such 25 claimed violation, and (3) provide notice of each such claimed 26 violation to each local code enforcement officer for state or local 27 housing, health, safety, building or fire code violations. Upon receipt 28 of not less than twelve claimed violations of any state or local housing, 29 health, safety, building or fire code in any one calendar year submitted 30 by tenants of the same rental housing property development, any local 31 code enforcement officer may report such rental housing property 32 development to the Attorney General who may submit an application 33 for a private receivership in the superior court for the judicial district 34 in which the rental housing property development is located. 35 (d) The Attorney General may bring an action on behalf of tenants 36 occupying any rental housing property development in accordance 37 with the provisions of subsection (c) of this section, alleging under 38 oath the existence of any state or local housing, health, safety, building 39 or fire code violations. The complaint shall set forth the address of the 40 rental housing property development and a description of the 41 conditions alleged to be hazardous to life, health or safety. Such action 42 shall be brought in the superior court for the judicial district in which 43 the premises are located in the same manner as in a civil process 44 naming all landlords and owners of record as defendants. There shall 45 be no entry fee for such action. The Attorney General shall cause a 46 notice of the pendency of such action to be filed in the land records of 47 the town in which such premises are located. 48 (e) The Superior Court may refer any complaint filed in accordance 49 with the provisions of subsections (c) and (d) of this section to a referee 50 Substitute Bill No. 6784 LCO {\\PRDFS1\HCOUSERS\BARRYJN\WS\2023HB-06784- R01-HB.docx } 3 of 6 who shall hold a hearing thereon, except if the complaint alleges that 51 there is an imminent danger to the life, health or safety of the tenants, 52 the court shall issue an immediate ex parte order granting such relief 53 as the court deems appropriate, pending a full hearing to be held not 54 later than three days after such order is issued. Any retired judge of 55 the Superior Court shall be eligible to act as a referee. The referee shall 56 take such testimony as such referee deems material, view the rental 57 housing property development and, after the hearing, report such 58 referee's findings and recommendations to the court. The court shall 59 review such report and enter judgment. Such report may be rejected 60 for irregular or improper conduct in the performance of the duties of 61 such referee, in which event the court shall appoint another referee to 62 make a report. There shall be no right to a jury trial in any of the 63 proceedings. 64 (f) It shall be a sufficient defense to a proceeding under this section 65 for the landlord or owner to establish that such conditions: (1) Alleged 66 in the petition did not in fact exist; (2) have been removed or remedied; 67 (3) have been intentionally caused by any tenant residing at such rental 68 housing property development; or (4) do not constitute a violation of 69 any such state or local housing, health, safety, building or fire code. 70 (g) If the court finds that the Attorney General has failed to establish 71 each of the allegations of the complaint or that the landlord or owner 72 affirmatively established any defense specified in subsection (f) of this 73 section as to all allegations set forth in the complaint, the court shall 74 render a judgment dismissing such allegations. 75 (h) If the court finds that the Attorney General has established some 76 or all of the allegations of the complaint and that no defense as 77 specified in subsection (f) of this section has been affirmatively 78 established by the landlord or owner, the court shall render a 79 judgment directing that: (1) The rents due on the date of entry of such 80 judgment and rents to become due subsequent thereto from all tenants 81 occupying such property be deposited with a private receiver 82 appointed by the court; (2) such receiver apply such rents and, to the 83 Substitute Bill No. 6784 LCO {\\PRDFS1\HCOUSERS\BARRYJN\WS\2023HB-06784- R01-HB.docx } 4 of 6 extent necessary, remedy the condition alleged in the petition; (3) 84 when such condition has been remedied in accordance with such 85 judgment, any remaining surplus be turned over to the landlord or 86 owner, together with a complete accounting of the rents deposited and 87 the costs incurred; and (4) granting such other and further relief as the 88 court may deem just and proper. A certified copy of the judgment shall 89 be served upon the Attorney General and each tenant occupying such 90 rental housing property development by registered mail. Any receiver 91 appointed pursuant to this subsection may charge such owner or 92 landlord of such rental housing property development a fee that shall 93 not exceed ten per cent of the total monthly rental income of such 94 rental housing property development to carry out the requirements set 95 forth in this section. 96 (i) The right of the landlord or owner of such rental housing 97 property development to collect such rent from any tenant on or after 98 the date of entry of a judgment as provided in subsection (h) of this 99 section shall be void and unenforceable to the extent that such tenants 100 have deposited such rent with a private receiver in accordance with 101 the terms of the judgment rendered under subsection (h) of this 102 section, regardless of whether such right of the landlord or owner 103 arises from a lease, deed, contract, agreement or understanding, or 104 otherwise. It shall be a valid defense in any action or proceeding 105 against such tenants to recover possession of real property for 106 nonpayment of rent or for use or occupation to prove that such rent 107 alleged to be unpaid was deposited with a private receiver in 108 accordance with the terms of a judgment entered under subsection (h) 109 of this section. 110 (j) If the court finds that the facts alleged in the complaint have been 111 affirmatively established, that no defense thereto specified in 112 subsection (f) of this section has been affirmatively established by the 113 landlord or owner and that the facts alleged in the complaint warrant 114 the granting of the relief sought, the court, in lieu of rendering 115 judgment, may issue an order permitting the landlord or owner to 116 Substitute Bill No. 6784 LCO {\\PRDFS1\HCOUSERS\BARRYJN\WS\2023HB-06784- R01-HB.docx } 5 of 6 remove or remedy the condition in the complaint found to exist if such 117 landlord or owner (1) demonstrates the ability to undertake the work 118 required, and (2) posts security for the performance of such work 119 required within the time and in the manner and amount deemed 120 necessary by the court. 121 (k) If, after the issuance of an order issued pursuant to subsection (j) 122 of this section, the Attorney General, upon investigation, determines 123 that such person permitted to perform the work is not proceeding with 124 due diligence, the Attorney General shall apply to the court for a 125 hearing to determine whether judgment should be rendered 126 immediately as provided in subsection (l) of this section. 127 (l) If, upon a hearing authorized under subsection (k) of this section, 128 the court determines that the person permitted to perform such work 129 is not proceeding with due diligence, the court shall render a judgment 130 appointing a receiver as authorized in subsection (h) of this section. 131 The judgment shall direct such receiver to apply the security posted by 132 such person to remove or remedy any condition specified in the 133 petition. If the amount of such security is insufficient for such purpose, 134 the judgment shall direct the deposit of rents with such receiver as 135 authorized in subsection (h) of this section to the extent of such 136 deficiency. If such security exceeds the amount required to remove or 137 remedy such condition, the judgment shall direct such receiver to file 138 with the court, upon completion of the work, a full accounting of the 139 amount of such security and the expenditures made pursuant to such 140 judgment, and to turn over such surplus to the owner or landlord who 141 posted security, together with a copy of such accounting. 142 (m) Any such receiver shall be discharged upon rendering a 143 complete accounting to the court when (1) such condition has been 144 removed, (2) the costs authorized by subsections (a) to (l), inclusive, of 145 this section have been paid or reimbursed from the rents and income 146 of the property, and (3) the surplus money, if any, has been paid over 147 to the landlord or owner as the court may direct. The receiver may be 148 discharged at any time upon filing such receiver's accounting as 149 Substitute Bill No. 6784 LCO {\\PRDFS1\HCOUSERS\BARRYJN\WS\2023HB-06784- R01-HB.docx } 6 of 6 receiver. Upon the removal of such condition, the landlord or owner 150 may apply for the discharge of the receiver upon payment to such 151 receiver of all moneys expended by the receiver for removal of such 152 condition and all other costs authorized by this section that have not 153 been paid or reimbursed from the rents and income of the property. 154 This act shall take effect as follows and shall amend the following sections: Section 1 October 1, 2023 New section Statement of Legislative Commissioners: In Subsec. (h), "the receiver" was changed to "such receiver", and "the judgment" was changed to "such judgment" for clarity. INS Joint Favorable Subst.