House Bill No. 6892 aims to limit the increase of rental charges upon the transfer of residential property to a new owner. The bill modifies Section 7-148c of the general statutes by requiring fair rent commissions to consider whether ownership of an accommodation has been transferred within the last twelve months when determining if a rental charge or proposed increase is excessive. Specifically, if ownership has changed, any rental charge or proposed increase exceeding ten percent of the previous lease's total rental charges will be presumed excessive unless the new owner has completed major renovations to at least two primary building systems, such as plumbing or electrical systems.

The bill also introduces new legal language that emphasizes the need for fair rent commissions to evaluate various factors when assessing rental charges, including the condition of the property and the frequency of rent increases. The effective date for these changes is set for July 1, 2025. This legislation is expected to impact municipalities by potentially limiting grand list growth due to restrictions on rental increases, which may affect property valuations based on income capitalization methods.

Statutes affected:
Raised Bill: 7-148c
HSG Joint Favorable: 7-148c
File No. 265: 7-148c