HB 5092

General Assembly  Substitute Bill No. 5092
   February Session, 2026
 AN ACT PROTECTING RENTERS FROM RENT INCREASES UPON
 THE TRANSFER OF RESIDENTIAL PROPERTY.
 Be it enacted by the Senate and House of Representatives in General
 Assembly convened:
1Section 1. Section 7-148c of the general statutes is repealed and the
2    following is substituted in lieu thereof (Effective October 1, 2026):
3      (a) In determining whether a rental charge or a proposed increase in
4   a rental charge is so excessive, with due regard to all the circumstances,
5   as to be harsh and unconscionable, a fair rent commission shall consider
6   such of the following circumstances as are applicable to the type of
7   accommodation: (1) The rents charged for the same number of rooms in
8   other housing accommodations in the same and in other areas of the
9   municipality; (2) the sanitary conditions existing in the housing
10   accommodations in question; (3) the number of bathtubs or showers,
11   flush water closets, kitchen sinks and lavatory basins available to the
12   occupants thereof; (4) services, furniture, furnishings and equipment
13   supplied therein; (5) the size and number of bedrooms contained
14   therein; (6) repairs necessary to make such accommodations reasonably
15   livable for the occupants accommodated therein; (7) the amount of taxes
16   and overhead expenses, including debt service, thereof; (8) whether the
17   accommodations are in compliance with the ordinances of the
18   municipality and the general statutes relating to health and safety; (9)
19   the income of the petitioner and the availability of accommodations; (10)
20   the availability of utilities; (11) damages done to the premises by the
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21 tenant, caused by other than ordinary wear and tear; (12) the amount
22 and frequency of increases in rental charges; (13) whether, and the
23 extent to which, the income from an increase in rental charges has been
24 or will be reinvested in improvements to the accommodations; and (14)
25 whether ownership of the accommodations has been transferred to a
26 new owner within the preceding twelve months.
27   (b) As used in this subsection, "major renovations" means renovations
28 whose total cost exceeds fifty thousand dollars.
29    (1) If ownership of the accommodation has been transferred to a new
30 owner within the preceding twelve months, a fair rent commission shall
31 determine whether the new owner has completed major renovations to
32 the accommodation.
33    (2) If a fair rent commission determines that a new owner has
34 completed major renovations, it shall assess whether the proposed rent
35 increase is harsh and unconscionable or unfair and inequitable pursuant
36 to subsection (a) of this section and section 7-148d, as amended by this
37 act.
38    (3) If a fair rent commission determines that a new owner has not
39 completed major renovations, the commission shall determine any
40 increase over an accommodation's rental rate during the previous
41 calendar year greater than (A) five per cent, or (B) the average increase
42 in the consumer price index for urban consumers during the most recent
43 calendar year, if any, to be so excessive as to be harsh and
44 unconscionable.
45    (4) Nothing in this subsection shall preclude a fair rent commission
46 from determining that a proposed rent increase of five per cent or less is
47 harsh and unconscionable or unfair and inequitable pursuant to
48 subsection (a) of this section and section 7-148d, as amended by this act.
49    Sec. 2. Section 7-148d of the general statutes is repealed and the
50 following is substituted in lieu thereof (Effective October 1, 2026):
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51    (a) (1) If a commission determines, after a hearing, that the rental
52 charge or proposed increase in the rental charge for any housing
53 accommodation is so excessive, based on the standards and criteria set
54 forth in subsection (a) of section 7-148c, as amended by this act, as to be
55 harsh and unconscionable, it may order that the rent be limited to such
56 an amount as it determines to be fair and equitable.
57    (2) If a commission determines, after a hearing, that the proposed
58 increase is so excessive, pursuant to subdivision (3) of subsection (b) of
59 section 7-148c, as amended by this act, as to be harsh and
60 unconscionable, it shall order that the rent increase for such housing
61 accommodation be limited to the greater of five per cent or the average
62 increase during the most recent calendar year in the consumer price
63 index for urban consumers.
64    (3) If a commission determines, after a hearing, that the housing
65 accommodation in question fails to comply with any municipal
66 ordinance or state statute or regulation relating to health and safety, it
67 may order the suspension of further payment of rent by the tenant until
68 such time as the landlord makes the necessary changes, repairs or
69 installations so as to bring such housing accommodation into
70 compliance with such ordinance, statute or regulation. The rent during
71 said period shall be paid to the commission to be held in escrow subject
72 to ordinances or provisions adopted by the town, city or borough.
73    (b) If the commission determines, after a hearing, that a landlord has
74 retaliated in any manner against a tenant because the tenant has
75 complained to the commission, the commission may order the landlord
76 to cease and desist from such conduct.
  This act shall take effect as follows and shall amend the following
  sections:
  Section 1     October 1, 2026  7-148c
  Sec. 2        October 1, 2026  7-148d
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HSG   Joint Favorable Subst.
PD    Joint Favorable
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