The bill SB1339, titled "An Act Concerning the Assignment of Certain Liens," proposes comprehensive amendments to the existing laws governing the assignment of liens for unpaid taxes, sewer assessments, and water charges by municipalities and regional authorities. It repeals Section 12-195h and introduces new provisions effective October 1, 2025, which allow municipalities to assign liens for consideration, granting assignees the same rights as municipalities in lien enforcement. Notably, the bill reduces the interest rate on delinquent property taxes from 18% to 12% for assignments executed on or after July 1, 2026, and mandates that all assignments must be documented in a written contract detailing obligations, disclosures, and communication protocols with property owners. The bill also requires assignees to provide payoff statements and ensures they are not insulated from liability under certain conditions.

Additionally, the bill outlines specific requirements for assignments executed on or after July 1, 2022, and July 1, 2026, including the necessity for written contracts that specify attorney's fees, timelines for foreclosure actions, and the assignee's legal history. It mandates that property owners and mortgage holders be notified within sixty days of an assignment and before any foreclosure actions commence. The bill aims to enhance transparency and accountability in the assignment and enforcement of tax liens while protecting property owners' rights, ensuring that all foreclosure actions are commercially reasonable and capping attorney's fees at 15% of any judgment entered for actions initiated after July 1, 2026.

Statutes affected:
Raised Bill: 12-195h, 7-254, 7-258, 7-239, 49-92o, 49-92p
BA Joint Favorable: 12-195h, 7-254, 7-258, 7-239, 49-92o, 49-92p
File No. 183: 12-195h, 7-254, 7-258, 7-239, 49-92o, 49-92p