Connecticut 2023 Regular Session

Connecticut House Bill HB06784 Compare Versions

Version 1 (Old)

Version 2 (New)

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7		-	General Assembly ~~Substitute~~ Bill No. 6784
	5	+	General Assembly Raised Bill No. 6784
8	6		January Session, 2023
	7	+	LCO No. 4512
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	9	+
	10	+	Referred to Committee on INSURANCE AND REAL ESTATE
	11	+
	12	+
	13	+	Introduced by:
	14	+	(INS)
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14	19		AN ACT CONCERNING NONCOMPLIANT LANDLORDS.
15	20		Be it enacted by the Senate and House of Representatives in General
16	21		Assembly convened:
17	22
18		-	Section 1. (NEW) (Effective October 1, 2023) (a) As used in this 1
19		-	section: 2
20		-	(1) "Complex" means not less than two residential buildings on the 3
21		-	same or contiguous parcels of real property under the same 4
22		-	ownership; 5
23		-	(2) "Landlord" means any owner, lessor or sublessor of any rental 6
24		-	housing property development in this state; 7
25		-	(3) "Receiver" means any person or entity appointed by any court in 8
26		-	this state, subject to such court's direction, to take possession of and 9
27		-	manage any rental housing property development; and 10
28		-	(4) "Rental housing property development" means any privately 11
29		-	owned multifamily development or complex in this state consisting of 12
30		-	not less than five hundred units. 13
31		-	(b) Notwithstanding other remedies available to any tenant under 14
32		-	chapter 833a of the general statutes, any tenant of a rental housing 15
33		-	property development who claims that the landlord or owner of such 16
34		-	rental housing property development has failed to comply with any 17 Substitute Bill No. 6784
	23	+	Section 1. (NEW) (Effective October 1, 2023) (a) As used in this section: 1
	24	+	(1) "Landlord" means any owner, lessor or sublessor of any rental 2
	25	+	housing property development in this state; 3
	26	+	(2) "Receiver" means any person or entity appointed by any court in 4
	27	+	this state, subject to such court's direction, to take possession of and 5
	28	+	manage any rental housing property development; and 6
	29	+	(3) "Rental housing property development" means any privately 7
	30	+	owned multifamily dwelling in this state consisting of not less than five 8
	31	+	hundred units. 9
	32	+	(b) In addition to other remedies available to any tenant under title 10
	33	+	47a of the general statutes, any tenant of a rental housing property 11
	34	+	development who claims that the landlord or owner of such rental 12
	35	+	housing property development has failed to comply with any state or 13
	36	+	local health or fire code may deliver a written notice to the applicable 14 Raised Bill No. 6784
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41		-	state or local housing, health, safety, building or fire code may deliver 18
42		-	a written notice to the applicable local code enforcement officer 19
43		-	specifying the acts or omissions constituting such housing, health, 20
44		-	safety, building or fire code violation. 21
45		-	(c) The applicable local code enforcement officer shall (1) review 22
46		-	and investigate each claimed violation of any state or local housing, 23
47		-	health, safety, building or fire code submitted pursuant to subsection 24
48		-	(b) of this section, (2) maintain written documentation of each such 25
49		-	claimed violation, and (3) provide notice of each such claimed 26
50		-	violation to each local code enforcement officer for state or local 27
51		-	housing, health, safety, building or fire code violations. Upon receipt 28
52		-	of not less than twelve claimed violations of any state or local housing, 29
53		-	health, safety, building or fire code in any one calendar year submitted 30
54		-	by tenants of the same rental housing property development, any local 31
55		-	code enforcement officer may report such rental housing property 32
56		-	development to the Attorney General who may submit an application 33
57		-	for a private receivership in the superior court for the judicial district 34
58		-	in which the rental housing property development is located. 35
59		-	(d) The Attorney General may bring an action on behalf of tenants 36
60		-	occupying any rental housing property development in accordance 37
61		-	with the provisions of subsection (c) of this section, alleging under 38
62		-	oath the existence of any state or local housing, health, safety, building 39
63		-	or fire code violations. The complaint shall set forth the address of the 40
64		-	rental housing property development and a description of the 41
65		-	conditions alleged to be hazardous to life, health or safety. Such action 42
66		-	shall be brought in the superior court for the judicial district in which 43
67		-	the premises are located in the same manner as in a civil process 44
68		-	naming all landlords and owners of record as defendants. There shall 45
69		-	be no entry fee for such action. The Attorney General shall cause a 46
70		-	notice of the pendency of such action to be filed in the land records of 47
71		-	the town in which such premises are located. 48
72		-	(e) The Superior Court may refer any complaint filed in accordance 49
73		-	with the provisions of subsections (c) and (d) of this section to a referee 50 Substitute Bill No. 6784
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	41	+
	42	+	local code enforcement officer specifying the acts or omissions 15
	43	+	constituting any state or local health or fire code violation. 16
	44	+	(c) Such local code enforcement officer shall review each claimed 17
	45	+	violation of any state or local health or fire code submitted pursuant to 18
	46	+	subsection (b) of this section. Upon receipt of not less than twelve 19
	47	+	claimed violations in any one calendar year submitted by tenants of the 20
	48	+	same rental housing property development , such local code 21
	49	+	enforcement officer may report such rental housing property 22
	50	+	development to the Attorney General who may submit an application 23
	51	+	for a private receivership in the superior court for the judicial district in 24
	52	+	which the rental housing property development is located. 25
	53	+	(d) The Attorney General may bring an action on behalf of tenants 26
	54	+	occupying any rental housing property development in accordance 27
	55	+	with the provisions of subsection (c) of this section, alleging under oath 28
	56	+	the existence of housing or fire code violations. The complaint shall set 29
	57	+	forth the address of the rental housing property development and a 30
	58	+	description of the conditions alleged to be hazardous to life, health and 31
	59	+	safety. Such action shall be brought in the superior court for the judicial 32
	60	+	district in which the premises are located in the same manner as in a 33
	61	+	civil process naming all landlords and owners of record as defendants. 34
	62	+	There shall be no entry fee for such action. The Attorney General shall 35
	63	+	cause a notice of the pendency of such action to be filed in the land 36
	64	+	records of the town in which such premises are located. 37
	65	+	(e) The Superior Court may refer any complaint filed in accordance 38
	66	+	with the provisions of subsections (c) and (d) of this section to a referee 39
	67	+	who shall hold a hearing thereon, except if the complaint alleges that 40
	68	+	there is an imminent danger to the life, health and safety of the tenants, 41
	69	+	the court shall issue an immediate ex parte order granting such relief as 42
	70	+	the court deems appropriate, pending a full hearing to be held not later 43
	71	+	than three days after such order is issued. Any retired judge of the 44
	72	+	Superior Court shall be eligible to act as a referee. The referee shall take 45
	73	+	such testimony as such referee deems material, view the rental housing 46
	74	+	property development and, after the hearing, report such referee's 47 Raised Bill No. 6784
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80		-	who shall hold a hearing thereon, except if the complaint alleges that 51
81		-	there is an imminent danger to the life, health or safety of the tenants, 52
82		-	the court shall issue an immediate ex parte order granting such relief 53
83		-	as the court deems appropriate, pending a full hearing to be held not 54
84		-	later than three days after such order is issued. Any retired judge of 55
85		-	the Superior Court shall be eligible to act as a referee. The referee shall 56
86		-	take such testimony as such referee deems material, view the rental 57
87		-	housing property development and, after the hearing, report such 58
88		-	referee's findings and recommendations to the court. The court shall 59
89		-	review such report and enter judgment. Such report may be rejected 60
90		-	for irregular or improper conduct in the performance of the duties of 61
91		-	such referee, in which event the court shall appoint another referee to 62
92		-	make a report. There shall be no right to a jury trial in any of the 63
93		-	proceedings. 64
94		-	(f) It shall be a sufficient defense to a proceeding under this section 65
95		-	for the landlord or owner to establish that such conditions: (1) Alleged 66
96		-	in the petition did not in fact exist; (2) have been removed or remedied; 67
97		-	(3) have been intentionally caused by any tenant residing at such rental 68
98		-	housing property development; or (4) do not constitute a violation of 69
99		-	any such state or local housing, health, safety, building or fire code. 70
100		-	(g) If the court finds that the Attorney General has failed to establish 71
101		-	each of the allegations of the complaint or that the landlord or owner 72
102		-	affirmatively established any defense specified in subsection (f) of this 73
103		-	section as to all allegations set forth in the complaint, the court shall 74
104		-	render a judgment dismissing such allegations. 75
105		-	(h) If the court finds that the Attorney General has established some 76
106		-	or all of the allegations of the complaint and that no defense as 77
107		-	specified in subsection (f) of this section has been affirmatively 78
108		-	established by the landlord or owner, the court shall render a 79
109		-	judgment directing that: (1) The rents due on the date of entry of such 80
110		-	judgment and rents to become due subsequent thereto from all tenants 81
111		-	occupying such property be deposited with a private receiver 82
112		-	appointed by the court; (2) such receiver apply such rents and, to the 83 Substitute Bill No. 6784
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	79	+
	80	+	findings and recommendations to the court. The court shall review such 48
	81	+	report and enter judgment. Such report may be rejected for irregular or 49
	82	+	improper conduct in the performance of the duties of such referee, in 50
	83	+	which event the court shall appoint another referee to make a report. 51
	84	+	There shall be no right to a jury trial in any of the proceedings. 52
	85	+	(f) It shall be a sufficient defense to a proceeding under this section 53
	86	+	for the landlord or owner to establish that such condition or conditions: 54
	87	+	(1) Alleged in the petition did not in fact exist; (2) have been removed or 55
	88	+	remedied; or (3) have been caused by any tenant residing at such rental 56
	89	+	housing property development. 57
	90	+	(g) If the court finds that the Attorney General has failed to establish 58
	91	+	the allegations of the complaint or that the landlord or owner 59
	92	+	affirmatively established any defense specified in subsection (f) of this 60
	93	+	section, the court shall render a judgment dismissing the complaint. 61
	94	+	(h) If the court finds that the Attorney General has proved the 62
	95	+	allegations of the complaint and that no defense as specified in 63
	96	+	subsection (f) of this section has been affirmatively established by the 64
	97	+	landlord or owner, the court shall render a judgment directing that: (1) 65
	98	+	The rents due on the date of entry of such judgment and rents to become 66
	99	+	due subsequent thereto from all tenants occupying such property be 67
	100	+	deposited with a private receiver appointed by the court; (2) the receiver 68
	101	+	apply such rents and, to the extent necessary, remedy the condition or 69
	102	+	conditions alleged in the petition; (3) when such condition or conditions 70
	103	+	have been remedied in accordance with the judgment, any remaining 71
	104	+	surplus be turned over to the landlord or owner, together with a 72
	105	+	complete accounting of the rents deposited and the costs incurred; and 73
	106	+	(4) granting such other and further relief as the court may deem just and 74
	107	+	proper. A certified copy of the judgment shall be served upon the 75
	108	+	Attorney General and each tenant occupying such rental housing 76
	109	+	property development by registered mail. Any receiver appointed 77
	110	+	pursuant to this subsection may charge such owner or landlord of such 78
	111	+	rental housing property development a fee that shall not exceed ten per 79
	112	+	cent of the total monthly rental income of such rental housing property 80 Raised Bill No. 6784
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119		-	extent necessary, remedy the condition alleged in the petition; (3) 84
120		-	when such condition has been remedied in accordance with such 85
121		-	judgment, any remaining surplus be turned over to the landlord or 86
122		-	owner, together with a complete accounting of the rents deposited and 87
123		-	the costs incurred; and (4) granting such other and further relief as the 88
124		-	court may deem just and proper. A certified copy of the judgment shall 89
125		-	be served upon the Attorney General and each tenant occupying such 90
126		-	rental housing property development by registered mail. Any receiver 91
127		-	appointed pursuant to this subsection may charge such owner or 92
128		-	landlord of such rental housing property development a fee that shall 93
129		-	not exceed ten per cent of the total monthly rental income of such 94
130		-	rental housing property development to carry out the requirements set 95
131		-	forth in this section. 96
132		-	(i) The right of the landlord or owner of such rental housing 97
133		-	property development to collect such rent from any tenant on or after 98
134		-	the date of entry of a judgment as provided in subsection (h) of this 99
135		-	section shall be void and unenforceable to the extent that such tenants 100
136		-	have deposited such rent with a private receiver in accordance with 101
137		-	the terms of the judgment rendered under subsection (h) of this 102
138		-	section, regardless of whether such right of the landlord or owner 103
139		-	arises from a lease, deed, contract, agreement or understanding, or 104
140		-	otherwise. It shall be a valid defense in any action or proceeding 105
141		-	against such tenants to recover possession of real property for 106
142		-	nonpayment of rent or for use or occupation to prove that such rent 107
143		-	alleged to be unpaid was deposited with a private receiver in 108
144		-	accordance with the terms of a judgment entered under subsection (h) 109
145		-	of this section. 110
146		-	(j) If the court finds that the facts alleged in the complaint have been 111
147		-	affirmatively established, that no defense thereto specified in 112
148		-	subsection (f) of this section has been affirmatively established by the 113
149		-	landlord or owner and that the facts alleged in the complaint warrant 114
150		-	the granting of the relief sought, the court, in lieu of rendering 115
151		-	judgment, may issue an order permitting the landlord or owner to 116 Substitute Bill No. 6784
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	117	+
	118	+	development to carry out the requirements set forth in this section. 81
	119	+	(i) The right of the landlord or owner of such rental housing property 82
	120	+	development to collect such rent from any tenant on or after the date of 83
	121	+	entry of a judgment as provided in subsection (h) of this section shall be 84
	122	+	void and unenforceable to the extent that such tenants have deposited 85
	123	+	such rent with a private receiver in accordance with the terms of the 86
	124	+	judgment rendered under subsection (h) of this section, regardless of 87
	125	+	whether such right of the landlord or owner arises from a lease, deed, 88
	126	+	contract, agreement or understanding, or otherwise. It shall be a valid 89
	127	+	defense in any action or proceeding against such tenants to recover 90
	128	+	possession of real property for nonpayment of rent or for use or 91
	129	+	occupation to prove that such rent alleged to be unpaid was deposited 92
	130	+	with a private receiver in accordance with the terms of a judgment 93
	131	+	entered under subsection (h) of this section. 94
	132	+	(j) If the court finds that the facts alleged in the complaint have been 95
	133	+	affirmatively established, that no defense thereto specified in subsection 96
	134	+	(f) of this section has been affirmatively established by the landlord or 97
	135	+	owner and that the facts alleged in the complaint warrant the granting 98
	136	+	of the relief sought, the court, in lieu of rendering judgment, may issue 99
	137	+	an order permitting the landlord or owner to remove or remedy the 100
	138	+	conditions in the complaint found to exist if such landlord or owner (1) 101
	139	+	demonstrates the ability to undertake the work required, and (2) posts 102
	140	+	security for the performance of such work required within the time and 103
	141	+	in the manner and amount deemed necessary by the court. 104
	142	+	(k) If, after the issuance of an order issued pursuant to subsection (j) 105
	143	+	of this section, the Attorney General, upon investigation, determines 106
	144	+	that such person permitted to perform the work is not proceeding with 107
	145	+	due diligence, the Attorney General shall apply to the court for a hearing 108
	146	+	to determine whether judgment should be rendered immediately as 109
	147	+	provided in subsection (l) of this section. 110
	148	+	(l) If, upon a hearing authorized under subsection (k) of this section, 111
	149	+	the court determines that the person permitted to perform such work is 112 Raised Bill No. 6784
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158		-	remove or remedy the condition in the complaint found to exist if such 117
159		-	landlord or owner (1) demonstrates the ability to undertake the work 118
160		-	required, and (2) posts security for the performance of such work 119
161		-	required within the time and in the manner and amount deemed 120
162		-	necessary by the court. 121
163		-	(k) If, after the issuance of an order issued pursuant to subsection (j) 122
164		-	of this section, the Attorney General, upon investigation, determines 123
165		-	that such person permitted to perform the work is not proceeding with 124
166		-	due diligence, the Attorney General shall apply to the court for a 125
167		-	hearing to determine whether judgment should be rendered 126
168		-	immediately as provided in subsection (l) of this section. 127
169		-	(l) If, upon a hearing authorized under subsection (k) of this section, 128
170		-	the court determines that the person permitted to perform such work 129
171		-	is not proceeding with due diligence, the court shall render a judgment 130
172		-	appointing a receiver as authorized in subsection (h) of this section. 131
173		-	The judgment shall direct such receiver to apply the security posted by 132
174		-	such person to remove or remedy any condition specified in the 133
175		-	petition. If the amount of such security is insufficient for such purpose, 134
176		-	the judgment shall direct the deposit of rents with such receiver as 135
177		-	authorized in subsection (h) of this section to the extent of such 136
178		-	deficiency. If such security exceeds the amount required to remove or 137
179		-	remedy such condition, the judgment shall direct such receiver to file 138
180		-	with the court, upon completion of the work, a full accounting of the 139
181		-	amount of such security and the expenditures made pursuant to such 140
182		-	judgment, and to turn over such surplus to the owner or landlord who 141
183		-	posted security, together with a copy of such accounting. 142
184		-	(m) Any such receiver shall be discharged upon rendering a 143
185		-	complete accounting to the court when (1) such condition has been 144
186		-	removed, (2) the costs authorized by subsections (a) to (l), inclusive, of 145
187		-	this section have been paid or reimbursed from the rents and income 146
188		-	of the property, and (3) the surplus money, if any, has been paid over 147
189		-	to the landlord or owner as the court may direct. The receiver may be 148
190		-	discharged at any time upon filing such receiver's accounting as 149 Substitute Bill No. 6784
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197		-	receiver. Upon the removal of such condition, the landlord or owner 150
198		-	may apply for the discharge of the receiver upon payment to such 151
199		-	receiver of all moneys expended by the receiver for removal of such 152
200		-	condition and all other costs authorized by this section that have not 153
201		-	been paid or reimbursed from the rents and income of the property. 154
	155	+	not proceeding with due diligence, the court shall render a judgment 113
	156	+	appointing a receiver as authorized in subsection (h) of this section. The 114
	157	+	judgment shall direct such receiver to apply the security posted by such 115
	158	+	person to remove or remedy any condition specified in the petition. If 116
	159	+	the amount of such security is insufficient for such purpose, the 117
	160	+	judgment shall direct the deposit of rents with such receiver as 118
	161	+	authorized in subsection (h) of this section to the extent of such 119
	162	+	deficiency. If such security exceeds the amount required to remove or 120
	163	+	remedy such condition or conditions, the judgment shall direct such 121
	164	+	receiver to file with the court, upon completion of the work, a full 122
	165	+	accounting of the amount of such security and the expenditures made 123
	166	+	pursuant to such judgment, and to turn over such surplus to the owner 124
	167	+	or landlord who posted security, together with a copy of such 125
	168	+	accounting. 126
	169	+	(m) Any such receiver shall be discharged upon rendering a complete 127
	170	+	accounting to the court when (1) such condition has been removed, (2) 128
	171	+	the costs authorized by subsections (a) to (l), inclusive, of this section 129
	172	+	have been paid or reimbursed from the rents and income of the 130
	173	+	property, and (3) the surplus money, if any, has been paid over to the 131
	174	+	landlord or owner as the court may direct. The receiver may be 132
	175	+	discharged at any time upon filing such receiver's accounting as 133
	176	+	receiver. Upon the removal of such condition, the landlord or owner 134
	177	+	may apply for the discharge of the receiver upon payment to such 135
	178	+	receiver of all moneys expended by the receiver for removal of such 136
	179	+	condition and all other costs authorized by this section that have not 137
	180	+	been paid or reimbursed from the rents and income of the property. 138
202	181		This act shall take effect as follows and shall amend the following
203	182		sections:
204	183
205	184		Section 1 October 1, 2023 New section
206	185
207		-	Statement of Legislative Commissioners:
208		-	In Subsec. (h), "the receiver" was changed to "such receiver", and "the
209		-	judgment" was changed to "such judgment" for clarity.
	186	+	Statement of Purpose:
	187	+	To establish a process for the appointment of private receiverships to
	188	+	oversee rental housing property developments where landlords or
	189	+	owners fail to comply with state and local health and fire codes. Raised Bill No. 6784
210	190
211		-	INS Joint Favorable Subst.
	191	+
	192	+
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	194	+
	195	+	[Proposed deletions are enclosed in brackets. Proposed additions are indicated by underline, except
	196	+	that when the entire text of a bill or resolution or a section of a bill or resolution is new, it is not
	197	+	underlined.]
212	198