Substitute House Bill No. 5092 seeks to safeguard renters from significant rent increases that may occur after the transfer of residential properties. The bill amends Section 7-148c of the general statutes by introducing new criteria for fair rent commissions to evaluate proposed rent increases, specifically requiring them to consider whether the ownership of the property has changed within the past twelve months. It also defines "major renovations" as those costing over $50,000 and stipulates that if such renovations have not been completed, any proposed rent increase exceeding 5% or the average increase in the consumer price index (CPI) for urban consumers from the previous year will be considered excessive.

Additionally, the bill modifies Section 7-148d, allowing fair rent commissions to limit rent increases deemed harsh or unconscionable based on the new criteria. If a commission finds a proposed increase to be excessive, it must restrict the increase to either 5% or the average CPI increase from the previous year. The bill clarifies that commissions can still determine that increases below 5% may be excessive under existing law. The provisions of this bill are set to take effect on October 1, 2026, and aim to promote fair rental practices while protecting tenants from abrupt and unjustified rent hikes, particularly in situations involving changes in property ownership.

Statutes affected:
Governor's Bill: 7-148c, 7-148d
HSG Joint Favorable Substitute: 7-148c, 7-148d
File No. 180: 7-148c, 7-148d