HB 6631 — AN ACT CONCERNING THE COMMON INTEREST OWNERSHIP ACT.

Substitute House ofBill Representatives General Assembly File No.

1346631 JanuaryPublic Session,Act 2023 Substitute House Bill No.

663123-119 HouseAN ofACT Representatives,CONCERNING MarchTHE 21,COMMON 2023INTEREST TheOWNERSHIP CommitteeACT. on Housing reported through REP.

LUXENBERG of the 12th Dist., Chairperson of the Committee on the part of the House, that the substitute bill ought to pass.

AN ACT CONCERNING THE COMMON INTEREST OWNERSHIP ACT.

sHB6631(2) /Not Fileless than sixty days prior to commencing an action to foreclose a lien on a unit under this section, the association shall provide a written notice by first class mail to the holders of all security interests Substitute House Bill No.

1346631 1described sHB6631in Filesubdivision No.(2) of subsection (b) of this section, which shall set forth the following:

134 (2) Not less than sixty days prior to commencing an action to foreclose a lien on a unit under this section, the association shall provide a written notice by first class mail to the holders of all security interests described in subdivision (2) of subsection (b) of this section, which shall set forth the following:

[(4)] (5) The failure of the association to provide the written notice required by [subdivisions] subdivision (2) [and (3)] of this subsection sHB6631prior /to Filecommencing an action to foreclose its lien shall not affect the Public Act No.

13423-119 2 sHB6631of File3 Substitute House Bill No.

1346631 prior to commencing an action to foreclose its lien shall not affect the priority of its lien for an amount equal to nine months common expense assessments, but the priority amount in such action shall not include any costs or attorney's fees.

ThisApproved actJune shall27, take2023 effectPublic asAct followsNo. and shall amend the following sections:

Section23-119 13 Octoberof 1,3 2023 47-258(m) HSG Joint Favorable Subst.

sHB6631 / File No.

134 3 sHB6631 File No.

134 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:

None Explanation The bill has no fiscal impact as it pertains to communication between private parties.

The bill clarifies that the 60-day written notice a condominium (or other common interest community) owners’ association must provide to certain third parties under certain circumstances is not a violation of the state’s fair debt collection laws.

The Out Years State Impact:

None Municipal Impact:

None sHB6631 / File No.

134 4 sHB6631 File No.

134 OLR Bill Analysis sHB 6631 AN ACT CONCERNING THE COMMON INTEREST OWNERSHIP ACT.

SUMMARY Under certain conditions, existing law allows common interest community (e.g., condominium) owners’ associations to bring an action to foreclose a lien on a unit for assessments attributable to the unit or fines imposed against the owner.

Among other things, the association must give written notice to holders of previously recorded first or second security interests (e.g., mortgages) at least 60 days before bringing the foreclosure action.

This bill specifies that this 60-day notice is not an unauthorized communication with a third party under state laws or regulations governing creditors’ collection practices.

Department of Banking regulations generally limit the parties with whom a creditor may, without the debtor’s consent, communicate about the collection of any debt (Conn.

Agencies Regs., § 36a-647-4(b)).

EFFECTIVE DATE:

October 1, 2023 COMMITTEE ACTION Housing Committee Joint Favorable Substitute Yea 15 Nay 0 (02/28/2023) sHB6631 / File No.

134 5