An Act Limiting The Increase Of Rental Charges Upon Transfer Of Residential Property To A New Owner.
Summary
HB 6892 would amend Connecticut’s fair rent commission statute to address rent increases that occur after a residential property changes ownership. Under the bill, when a property has been transferred to a new owner within the prior 12 months, a fair rent commission would presume that any rent increase of more than 10% over the immediately preceding lease period is excessive, unless the new owner has completed major renovations to the accommodation.
The bill also defines “major renovations” as work on at least two primary building systems, such as plumbing, heating or air conditioning, electrical systems, the building envelope, or the foundation. In addition to this new presumption, the bill retains the existing list of factors fair rent commissions may consider when evaluating whether a rent increase is harsh and unconscionable, including comparable rents, property condition, services provided, taxes and overhead, compliance with health and safety laws, tenant damage, and reinvestment of rental income into improvements.
Impact
The bill would modify Section 7-148c of the general statutes, expanding the criteria used by fair rent commissions when reviewing rent increases and creating a specific rebuttable presumption against large post-sale rent hikes. Its practical effect would be to give tenants in recently sold residential properties stronger protection from sharp rent increases, while requiring new owners to justify increases above 10% or show qualifying major renovations. Landlords, property investors, and fair rent commissions would be the primary parties affected, and the change would take effect July 1, 2025.
Sentiment
The committee record suggests generally favorable support for the bill’s purpose, as reflected in the Joint Favorable vote of 12-6. However, the failed motion vote of 6-12 indicates there was also meaningful opposition or disagreement about the bill’s approach. With no transcript available, the overall sentiment can be characterized as supportive but divided, likely reflecting competing views on tenant protections versus owner flexibility after property acquisition.
Contention
The main point of contention appears to be whether it is appropriate to presume that rent increases above 10% are excessive after a property transfer, and whether that presumption should apply unless major renovations have been completed. Supporters likely view the measure as a safeguard against opportunistic rent spikes following sales, while opponents may see it as an intrusion on new owners’ ability to set rents, recover acquisition costs, or price units according to market conditions. The definition of “major renovations” and the scope of the fair rent commission’s authority are also likely areas of dispute.