HB 5092 — AN ACT PROTECTING RENTERS FROM RENT INCREASES UPON THE TRANSFER OF RESIDENTIAL PROPERTY.

House of Representatives General Assembly FileSubstitute Bill No.

1805092 February Session, 2026 SubstituteAN HouseACT BillPROTECTING No.RENTERS FROM RENT INCREASES UPON THE TRANSFER OF RESIDENTIAL PROPERTY.

5092 House of Representatives, March 26, 2026 The Committee on Housing reported through REP.

FELIPE of the 130th Dist., Chairperson of the Committee on the part of the House, that the substitute bill ought to pass.

AN ACT PROTECTING RENTERS FROM RENT INCREASES UPON THE TRANSFER OF RESIDENTIAL PROPERTY.

(6) repairs necessary to make such accommodations reasonably sHB5092livable /for Filethe No.occupants accommodated therein;

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180 livable for the occupants accommodated therein;

(11) damages done to the premises by the tenant,LCO caused1 byof other4 thanSubstitute ordinaryBill wearNo. and tear;

5092 tenant, caused by other than ordinary wear and tear;

(4) Nothing in this subsection shall preclude a fair rent commission from determining that a proposed rent increase of five per cent or less is sHB5092harsh /and Fileunconscionable No.or unfair and inequitable pursuant to subsection (a) of this section and section 7-148d, as amended by this act.

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180 harsh and unconscionable or unfair and inequitable pursuant to subsection (a) of this section and section 7-148d, as amended by this act.

(a)LCO (1)2 If a commission determines, after a hearing, that the rental charge or proposed increase in the rental charge for any housing accommodation is so excessive, based on the standards and criteria set forth in subsection (a) of section4 7-148c,Substitute asBill amendedNo. by this act, as to be harsh and unconscionable, it may order that the rent be limited to such an amount as it determines to be fair and equitable.

5092 (a) (1) If a commission determines, after a hearing, that the rental charge or proposed increase in the rental charge for any housing accommodation is so excessive, based on the standards and criteria set forth in subsection (a) of section 7-148c, as amended by this act, as to be harsh and unconscionable, it may order that the rent be limited to such an amount as it determines to be fair and equitable.

sHB5092This /act Fileshall No.take effect as follows and shall amend the following sections:

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180 This act shall take effect as follows and shall amend the following sections:

2 October 1, 2026 7-148d StatementLCO 3 of Legislative4 Commissioners:Substitute Bill No.

In5092 SectionHSG 1(b)(3),Joint "aFavorable unit's"Subst. was changed to "an accommodation's" for consistency;

andPD inJoint SectionFavorable 2(a)(2),LCO a4 referenceof to4 "such housing accommodation" was added for clarity.

HSG Joint Favorable Subst.

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180 The following Fiscal Impact Statement and Bill Analysis are prepared for the benefit of the members of the General Assembly, solely for purposes of information, summarization and explanation and do not represent the intent of the General Assembly or either chamber thereof for any purpose.

In general, fiscal impacts are based upon a variety of informational sources, including the analyst’s professional knowledge.

Whenever applicable, agency data is consulted as part of the analysis, however final products do not necessarily reflect an assessment from any specific department.

OFA Fiscal Note State Impact:

None Municipal Impact:

Municipalities Effect FY 27 $ FY 28 $ Various Municipalities Precludes None Potential Grand List Growth Explanation The bill may preclude grand list growth in various municipalities beginning in FY 28 by limiting certain rental increases.

This may limit an increase in value for rental properties that are valued using the income capitalization method.

The Out Years The annualized ongoing fiscal impact identified above would continue into the future subject to the number of impacted properties.

1The bill only impacts municipalities with a fair rent commission as it expands the factors that a fair rent commission must considering when determining if a proposed rent increase is excessive.

Municipalities that do not have a fair rent commission will not have an impact.

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180 OLR Bill Analysis sHB 5092 AN ACT PROTECTING RENTERS FROM RENT INCREASES UPON THE TRANSFER OF RESIDENTIAL PROPERTY.

SUMMARY This bill modifies the factors that fair rent commissions (see BACKGROUND) must generally consider when determining whether a proposed rent increase is excessive (generally meaning “harsh and unconscionable”).

Specifically, it requires commissions to consider whether ownership of an accommodation was transferred within the last 12 months.

If so, the commission must next determine whether the new owner has completed “major renovations” to the accommodation, meaning those with a total cost exceeding $50,000.