MD Rahman

SENATOR RAHMAN LEADS SENATE IN PASSING BILL PROHIBITING FORECLOSURE FOR UNPAID SEWER FEES UNDER $4,000

Today, State Senator MD Rahman (D-Manchester), Senate Chair of the Planning and Development Committee, led the Senate’s passage of legislation that will prohibit foreclosure and other enforcement against properties for unpaid sewer assessments and similar fees where the principal of those unpaid assessments, fees and charges is less than $4,000 unless those fees are more than five years old.

“In New Haven, foreclosure activity has started on properties with unpaid sewer liens less than two years after those liens were first imposed,” said Sen. Rahman. “This bill is intended to support and aid homeowners who may be facing financial difficulties in avoiding threats against their properties. It simply ensures that fees and assessments must rise above a certain financial threshold before action can be taken. This will be strongly beneficial for a number of Connecticut residents who may be struggling economically.,/p>

Current law provides no minimum amount below which a lien against a property cannot be assigned. Senate Bill 916, “An Act Concerning Foreclosure, Assignment And Other Enforcement Actions For Unpaid Sewer Assessments And Other Fees And Charges,” imposes restrictions against municipal or regional sewer or water pollution control authority assessments/charges until the principal exceeds $4,000 unless that principal is more than five years old without payment. The bill is intended to help residents remain in their homes in the event that they are faced with liens due to financial difficulty.

The New Haven Independent has published stories from homeowners and advocates citing that in some Connecticut municipalities, such as New Havens, liens and foreclosures can be imposed for as little as $1,000. Some cities can even sell delinquent taxes to third-party debt buyers, who can also foreclose.

A second bill, not raised Wednesday, would also reduce the annual interest rate on these locations from 18 percent to 12 percent; sometimes, the fees and interest that can accumulate on fees are valued higher than the amount of delinquent taxes owed.

The bill passed the Senate by a 23-13 tally and previously passed the Planning and Development Committee by a 13-8 tally in March. It now moves to the House.