Connecticut legislators are considering a bill that would automatically flag rent increases above 10% as “excessive” for some new property owners.
During a public hearing on the legislation on Tuesday, lawmakers on the Housing Committee heard from state officials, landlords and housing advocates about the proposal.
According to the bill’s text, Fair Rent Commissions would presume a rent increase greater than 10% to be excessive if the property owner has had the home for less than a year—unless the new owner has completed major renovations such as plumbing, heating or air conditioning, electrical systems, the building envelope or the foundation.
The increase would still have to be investigated by the Fair Rent Commission, during which the landlord would be able to explain their reasoning. (Any municipality with more than 25,000 residents has to have a Fair Rent Commission, and the commission’s authority varies by location.)
The commission wouldn’t be forced to act on the designation.
Supporters of the bill include Housing Commissioner Seila Mosquera-Bruno.
“This proposal balances landlords and tenants’ interest, allowing landlords a reasonable return on investment while protecting existing residents from excessive rent increases,” Mosquera-Bruno said. “It protects vulnerable populations, such as low-income families, seniors, and individuals with disabilities on fixed income that may not be able to afford an excess in rents.”
During the hearing, Mosquera-Bruno was questioned by Ranking Member Sen. Rob Sampson (R-Wolcott), who is a landlord and real estate agent.
Sampson said he would wait to see the bill's final text before making a decision on his vote. But he expressed concern about the legislation hurting rental property owners, calling it a “cap” on rent increases.
“I've had situations where I didn't raise someone's rent for 10 years, but then, you know, something happens,” Sampson said. “You know, I got a new tenant or the market changes dramatically, or the town raises my property taxes through an assessment dramatically ... I mean, at some point the landlord has to have a mechanism to be able to keep up with their expenses.”
Mike Santorum is the director of Policy Research at the Department of Housing. He said the legislation doesn’t affect existing landlords.
“All it really does is it takes some of the burden off local fair rent commissions on new property owners who, within the first 12 months of ownership, try to slap an excessive rent increase on existing tenants,” Santorum said.
Connecticut doesn't have a law that caps rent increases.
