House Bill No. 6892 aims to limit the increase of rental charges when residential properties are transferred to new owners. The bill modifies Section 7-148c of the general statutes, requiring fair rent commissions to consider whether ownership of an accommodation has changed within the past twelve months. If ownership has indeed changed, the commission must presume that any proposed rental charge increase exceeding 10% of the previous lease's total rental charges is excessive, unless the new owner has completed "major renovations" to the property. Major renovations are defined as improvements to at least two primary building systems, such as plumbing, heating, or electrical systems.

The bill also introduces additional factors for fair rent commissions to consider when determining if a rental charge is excessive, including the condition of the property and the frequency of past rental increases. The effective date for these changes is set for July 1, 2025. The bill is expected to have a fiscal impact by potentially limiting grand list growth in municipalities due to the cap 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