AN ACT PROHIBITING A LANDLORD FROM REQUIRING A SECURITY DEPOSIT IN EXCESS OF ONE MONTH'S RENT FROM ANY TENANT.

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General Assembly Raised Bill No. 5257
February Session, 2026 LCO No. 851

Referred to Committee on HOUSING

Introduced by:
(HSG)

AN ACT PROHIBITING A LANDLORD FROM REQUIRING A SECURITY
DEPOSIT IN EXCESS OF ONE MONTH'S RENT FROM ANY TENANT.
Be it enacted by the Senate and House of Representatives in General
Assembly convened:

Section 1. Subsections (a) and (b) of section 47a -21 of the 2026 1
supplement to the general statutes are repealed and the following is 2
substituted in lieu thereof (Effective October 1, 2026): 3
(a) As used in this chapter: 4
(1) "Accrued interest" means the interest due on a security deposit as 5
provided in subsection (i) of this section, compounded annually to the 6
extent applicable. 7
(2) "Commissioner" means the Banking Commissioner. 8
(3) "Escrow account" means any account at a financial institution 9
which is not subject to execution by the creditors of the escrow agent 10
and includes a clients' funds account. 11
(4) "Escrow agent" means the person in whose name an escrow 12
account is maintained. 13

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(5) "Financial institution" means any state bank and trust company, 14
national bank, savings bank, federal savings bank, savings and loan 15
association, and federal savings and loan association that is located in 16
this state. 17
(6) "Forwarding address" means the address to which a security 18
deposit may be mailed for delivery to a former tenant. 19
(7) "Landlord" means any landlord of residential real property, and 20
includes (A) any receiver; (B) any successor; and (C) any tenant who 21
sublets his premises. 22
(8) "Receiver" means any person who is appointed or authorized by 23
any state, federal or probate court to receive rents from tenants, and 24
includes trustees, executors, administrators, guardians, conservators, 25
receivers, and receivers of rent. 26
(9) "Rent receiver" means a receiver who lacks court authorization to 27
return security deposits and to inspect the premises of tenants and 28
former tenants. 29
(10) "Residential real property" means real property containing one 30
or more residential units, including residential units not owned by the 31
landlord, and containing one or more tenants who paid a security 32
deposit. 33
(11) "Security deposit" means any advance rental payment, or any 34
installment payment collected pursuant to section 47a -22a, except an 35
advance payment for the first month's rent or a deposit for a key or any 36
special equipment. 37
(12) "Successor" means any person who succeeds to a landlord's 38
interest whether by purchase, foreclosure or otherwise and includes a 39
receiver. 40
(13) "Tenant" means a tenant, as defined in section 47a-1, or a resident, 41
as defined in section 21-64. 42

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(14) "Tenant's obligations" means (A) the amount of any rental or 43
utility payment due the landlord from a tenant; (B) a tenant's obligations 44
under the provisions of section 47a-11; and (C) the actual reasonable cost 45
of changing the locks of the dwelling unit pursuant to section 47a -7b, if 46
the tenant has not paid such cost. 47
(b) (1) In the case of [a tenant under sixty-two years of age] any rental 48
agreement, defined under section 47a-1, entered into on or after October 49
1, 2026, a landlord shall not demand or accept from a tenant a security 50
deposit in an amount that exceeds [two months'] one month's rent. 51
(2) [In the case of a tenant sixty-two years of age or older, a landlord 52
shall not demand a security deposit in an amount that exceeds one 53
month's rent.] Any landlord who has received a security deposit in an 54
amount that exceeds one month's rent from a tenant who becomes sixty-55
two years of age after paying such security deposit shall return the 56
portion of such security deposit that exceeds one month's rent to the 57
tenant upon the tenant's request. 58
Sec. 2. Subsection (a) of section 8 -339 of the general statutes is 59
repealed and the following is substituted in lieu thereof (Effective October 60
1, 2026): 61
(a) The Commissioner of Housing shall establish, within available 62
appropriations, and administer a security deposit guarantee program 63
for (1) any individual or family whose income is sixty per cent or less of 64
the median income of the state, adjusted for family size, as determined 65
by the United States Department of Housing and Urban Development 66
and who have a documented financial need as determined by the 67
commissioner, (2) any individual who is served a writ, summons and 68
complaint in a summary process action instituted pursuant to chapter 69
832, or (3) any individual who receives a certificate or voucher from a 70
rental assistance program or federal Housing Choice Voucher program. 71
Under the security deposit guarantee program, the commissioner may 72
provide security deposit guarantees for use by persons who are eligible 73

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pursuant to this subsection in lieu of a security deposit on a rental 74
dwelling unit. Eligible persons may receive a security deposit guarantee 75
in an amount not to exceed the equivalent of [two months'] one month's 76
rent on such rental unit. No person may apply for and receive a security 77
deposit guarantee more than once in any twenty-four-month period 78
without the express authorization of the commissioner, except as 79
provided in subsection (b) of this section. The commissioner may deny 80
eligibility for the program to an applicant for whom the commissioner 81
has paid one or more claims by landlords. The commissioner shall 82
prioritize the provision of security deposit guarantees to eligible 83
veterans and may establish priorities for providing security deposit 84
guarantees to other eligible persons described in subdivisions (1) to (3), 85
inclusive, of this subsection in order to administer the program within 86
available appropriations. 87
This act shall take effect as follows and shall amend the following
sections:

Section 1 October 1, 2026 47a-21(a) and (b)
Sec. 2 October 1, 2026 8-339(a)

Statement of Purpose:
To prohibit landlords from requiring a security deposit in excess of one
month's rent from any tenant.

[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.]