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 adding new considerations for fair rent commissions when determining if a rental charge or proposed increase is excessive. Specifically, it requires commissions to consider whether the ownership of the accommodation has changed within the last twelve months. If ownership has been transferred, any rental charge or proposed increase exceeding ten percent of the previous lease's total rental charges is presumed to be excessive unless the new owner has completed major renovations to at least two primary building systems, such as plumbing or electrical systems.

The bill will take effect on July 1, 2025, and aims to provide additional protections for tenants by ensuring that significant rent increases are justified, particularly in the context of new ownership. This legislative change is expected to impact municipalities by potentially limiting grand list growth due to restrictions on rental increases, which could affect property valuations based on income capitalization methods.

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