AN ACT PROTECTING RENTERS FROM RENT INCREASES UPON CHANGE OF OWNERSHIP.

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General Assembly Governor's Bill No. 5042
February Session, 2026 LCO No. 626

Referred to Committee on HOUSING

Introduced by:
Request of the Governor Pursuant
to Joint Rule 9

AN ACT PROTECTING RENTERS FROM RENT INCREASES UPON
CHANGE OF OWNERSHIP.
Be it enacted by the Senate and House of Representatives in General
Assembly convened:

Section 1. Subsection (a) of section 7-148b of the 2026 supplement to 1
the general statutes is repealed and the following is substituted in lieu 2
thereof (Effective October 1, 2026): 3
(a) For purposes of this section and sections 7 -148c to 7 -148f, 4
inclusive, as amended by this act , "seasonal basis" means housing 5
accommodations rented for a period or periods aggregating not more 6
than one hundred twenty days in any one calendar year, "rental charge" 7
includes any fee or charge in addition to rent that is imposed or sought 8
to be imposed upon a tenant by a landlord, [and] "municipality" means 9
a town, city or consolidated town and city and "major renovations" 10
means renovations to at least two primary building systems, including, 11
but not limited to, plumbing, heating and air conditioning, electrical 12
systems, building envelope and building foundation, which require 13
significant expenditure relative to the fair market value of the building. 14

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Sec. 2. Section 7 -148c of the general statutes is repealed and the 15
following is substituted in lieu thereof (Effective October 1, 2026): 16
(a) In determining whether a rental charge or a proposed increase in 17
a rental charge is so excessive, with due regard to all the circumstances, 18
as to be harsh and unconscionable, a fair rent commission shall consider 19
such of the following circumstances as are applicable to the type of 20
accommodation: (1) The rents charged for the same number of rooms in 21
other housing accommodations in the same and in other areas of the 22
municipality; (2) the sanitary conditions existing in the housing 23
accommodations in question; (3) the number of bathtubs or showers, 24
flush water closets, kitchen sinks and lavatory basins available to the 25
occupants thereof; (4) services, furniture, furnishings and equipment 26
supplied therein; (5) the size and number of bedrooms contained 27
therein; (6) repairs necessary to make such accommodations reasonably 28
livable for the occupants accommodated therein; (7) the amount of taxes 29
and overhead expenses, including debt service, thereof; (8) whether the 30
accommodations are in compliance with the ordinances of the 31
municipality and the general statutes relating to health and safety; (9) 32
the income of the petitioner and the availability of accommodations; (10) 33
the availability of utilities; (11) damages done to the premises by the 34
tenant, caused by other than ordinary wear and tear; (12) the amount 35
and frequency of increases in rental charges; (13) whether, and the 36
extent to which, the income from an increase in rental charges has been 37
or will be reinvested in improvements to the accommodations; and (14) 38
whether ownership of the accommodation has been transferred to a new 39
owner within the preceding twelve months. 40
(b) (1) If ownership of the accommodation has been transferred to a 41
new owner within the preceding twelve months, a fair rent commission 42
shall determine whether the new owner has completed major 43
renovations to the accommodation. 44
(2) If a fair rent commission determines that a new owner has 45
completed major renovations, it shall assess whether the proposed rent 46

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increase is harsh and unconscionable or unfair and inequitable pursuant 47
to subsection (a) of this section. 48
(3) If a fair rent commission determines that a new owner has not 49
completed major renovations, the commission shall determine any 50
increase to an existing tenant's rent above the greater of (A) five per cent, 51
or (B) the increase in the most recent calendar year average in the 52
consumer price index for urban consumers to be so excessive as to be 53
harsh and unconscionable. 54
(4) Nothing in this sub section shall preclude a fair rent commission 55
from determining that a proposed rent increase of five per cent or less is 56
harsh and unconscionable or unfair and inequitable pursuant to 57
subsection (a) of this section. 58
Sec. 3. Section 7-148d of the general statutes is repealed and the 59
following is substituted in lieu thereof (Effective October 1, 2026): 60
(a) (1) If a commission determines, after a hearing, that the rental 61
charge or proposed increase in the rental charge for any housing 62
accommodation is so excessive, based on the standards and criteria set 63
forth in subsection (a) of section 7-148c, as amended by this act, as to be 64
harsh and unconscionable, it may order that the rent be limited to such 65
an amount as it determines to be fair and equitable. 66
(2) If a commission determines, after a hearing, that the proposed 67
increase is so excessive, based on the standards and criteria set forth in 68
subdivision (3) of subsection (b) of section 7 -148c, as amended by this 69
act, as to be harsh and unconscionable, it shall order that the rent 70
increase be limited to the greater of five per cent or the increase in the 71
most recent calendar year average in the consumer price index for urban 72
consumers. 73
(3) If a commission determines, after a hearing, that the housing 74
accommodation in question fails to comply with any municipal 75
ordinance or state statute or regulation relating to health and safety, it 76

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may order the suspension of further payment of rent by the tenant until 77
such time as the landlord makes the necessary changes, repairs or 78
installations so as to bring such housing accommodation into 79
compliance with such ordinance, statute or regulation. The rent during 80
said period shall be paid to the commission to be held in escrow subject 81
to ordinances or provisions adopted by the town, city or borough. 82
(b) If the commission determines, after a hearing, that a landlord has 83
retaliated in any manner against a tenant because the tenant has 84
complained to the commission, the commission may order the landlord 85
to cease and desist from such conduct. 86
This act shall take effect as follows and shall amend the following
sections:

Section 1 October 1, 2026 7-148b(a)
Sec. 2 October 1, 2026 7-148c
Sec. 3 October 1, 2026 7-148d

Statement of Purpose:
To implement the Governor's budget recommendations.

[Proposed deletions are enclosed in brackets. Proposed additions are indicated by underline, except
that when the entire text of a bill or resolution or a section of a bill or resolution is new, it is not
underlined.]