As the legislative session of 2023 comes to a close, it's important to reflect on the various bills that were introduced and their implications for the real estate and housing sector in Connecticut. This year has seen a mixture of proposed bills that aimed to reshape property taxation, housing regulations, and various other aspects of the industry. Here's a comprehensive overview of the bills that did not pass and the ones that were signed into law.
Bills That Did Not Pass:
SB 776 - Statewide Property Tax: One of the most significant proposals, SB 776, aimed to establish a statewide property tax on residential real property. Despite its potential to generate revenue for the state, the bill failed to gain enough support to become law.
SB 979 - Energy Scoring: This bill sought to require landlords to provide a "Connecticut home energy label" for certain dwelling units before a prospective tenant signed a lease. The label, developed by the Department of Energy and Environmental Protection, would have informed tenants about the energy efficiency of the property. However, this bill also failed to progress.
SB 1020 - First Time Homebuyer Savings Account: A proposal to create a state tax-advantaged savings account for first-time homebuyers garnered attention. The funds from this account could have been used for down payments and closing costs on a home. Despite its potential benefits for aspiring homeowners, SB 1020 did not become law.
SB 1144 - Eminent Domain: This proposal aimed to grant the state eminent domain power over coastal properties for purposes related to resiliency, flooding, and other concerns. The bill's defeat was partly attributed to a call to action from REALTOR® associations, highlighting concerns about property rights.
HB 6710 - Association Health Plans: Although not directly related to real estate, this bill could have impacted real estate professionals' access to health insurance. The proposal would have allowed certain health insurance plans to be sold in Connecticut, but it did not progress due to conflicts with federal laws.
HB 6397 - Zero-Carbon Emissions: Focused on environmental goals, this bill would have required the Department of Energy and Environmental Protection to develop a roadmap for Connecticut's decarbonization efforts. The bill's aim was to identify regulations, policies, and programs necessary to achieve greenhouse gas emission reduction targets.
Bills Signed by the Governor:
SB 998 - "Housing" Bill: This comprehensive bill covered various aspects of housing policy. While the original proposals included contentious measures like rent control and buyer conveyance tax, most were removed due to opposition. The final bill primarily addressed tenant-related issues, including limits on tenant screening fees, prohibition of additional application fees, and requirements for security deposit returns.
HB 6580 - Changes to Detector Affidavit: This law altered the requirements for smoke and carbon monoxide detector disclosures in residential buildings. It made language more understandable for consumers and extended the affidavit requirement to units in residential common interest communities.
HB 6892 - Blight Ordinances: This law expanded penalties for littering, blight, and related conditions, including applying blight enforcement options to commercial properties.
HB 6769 - CTR/DCP Licensing Bill: A comprehensive bill affecting real estate licensing and regulations, it defined new terms, established new forms for disclosures, clarified confidentiality requirements, and addressed issues related to brokerage business transitions and more.
In conclusion, the 2023 legislative session brought forth a range of proposals that could have significantly impacted the real estate and housing sector in Connecticut. While some bills failed to pass, others were signed into law, resulting in changes to how real estate transactions are conducted and regulated. As the industry continues to evolve, it's important for professionals and stakeholders to stay informed about these legislative developments and their potential implications.
Sept 19, 2023 Triniyah Real Estate will be hosting a Networking Night - Dinner & Discussion with Attorney Yona Gregory. Attorney Gregory will be discussing how landlords should navigate these new laws with their tenants. Be in the room. RSVP at www.Triniyah.com/events
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