State Senator Eric D. Coleman
November 24, 2008
Coleman Leads Push for Legislation to Help Tenants Living in Foreclosed Houses
Meeting in special session, the co-chair of the Planning and Development Committee, Senator Eric Coleman (D-Bloomfield) successfully introduced legislation approved by the Senate to increase protection for tenants in Connecticut living in foreclosed properties. It is designed to help the thousands of renters who may be forced out of their homes or apartments because of the subprime mortgage crisis and foreclosures.
It was a key section of a bill to provide relief for municipalities. It increases the length of time certain tenants may continue residing in foreclosed property. The length of stay and eviction prohibition depends of when the tenant entered the lease and whether it was written. If the tenant entered a written agreement more than 60 days before the start of the foreclosure action, the stay is in effect and evictions are prohibited until the lease expires or 60 days after the foreclosing party obtains absolute title. If the tenant entered an oral agreement or written agreement less than 60 days before the start of foreclosure action, the stay is in effect and evictions are prohibited for 30 days after the foreclosing party or successor obtain absolute title.
The bill establishes a minimum threshold for incentives offered by mortgagees, lien holders, or successors in interest for tenants to move from foreclosed residential property. The amount of the incentive is based on whether there is evidence of the amount or value of the security deposit the tenant paid. If the evidence is lacking, the incentive must be equal to two months’ rent or $2,000, whichever is greater.
“There are an untold number of foreclosures that are occurring in Connecticut and we have to assume there are a number of renters who are in jeopardy of losing a place to stay because of the foreclosures that are occurring,” said Senator Coleman. “I think it is fair to say there are thousands of people and families that could be adversely impacted. This bill is designed provide more relief for tenants, and that includes extending the period of time for eviction actions.”
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