You asked how a town would establish a fair rent commission and would it have jurisdiction over an assisted living facility.

The Office of Legislative Research is not authorized to give legal opinions and this should not be considered one.

SUMMARY

The law allows a municipal legislative body to create a fair rent commission. It requires municipalities with more than 5,000 rental units to consider creating such a commission.

The only statutory limit on a commission's jurisdiction to investigate fair rent is on seasonal rentals (seasonal rentals of 120 days or less are exempt). Thus, it appears residents of an assisted living facility could seek relief from a fair rent commission.

By law, a municipality with more than 5,000 rental units that did not have a fair rent commission as of October 1, 1989 must conduct a public hearing on creating one. The municipality's legislative body must decide by majority vote whether to create the commission. The municipality must use the most recent decennial census to determine the number of rental units.

The balance of this report explains the purpose and powers of commissions, and the complaint process.

COMMISSION PURPOSE AND POWERS (§ 7-148b)

A fair rent commission's purpose is to “control and eliminate excessive rental charges. ” Fair rent commissions can receive and investigate rent complaints, issue subpoenas, hold hearings, and order landlords to reduce rents for specific reasons. The law also states that anyone who violates a commission order or subpoena is subject to a fine of between $ 25 and $ 100.

In order to control excessive rental charges, state statute authorizes municipal commissions to (1) to conduct studies and investigations, (2) hold hearings, (3) receive rent complaints (except on units rented on a seasonal basis), (4) require people to appear at hearings under oath, (5) issue subpoenas, and (6) issue orders regarding rent increases. A commission can alter or terminate any of its decisions. The law defines “seasonal basis” for such commissions' purposes as housing rented for not more than 120 days per calendar year.

Commissions are also authorized to carry out the provisions of a landlord tenant statute (§ 47a-20) regarding prohibited retaliatory actions by landlords. This section prohibits retaliation for a tenant making a good faith (1) effort to bring the dwelling in compliance with state and local laws and regulations, including filing a complaint; (2) request for reasonable repairs; and (3) effort to require the landlord to meet his legal responsibilities. Retaliation is also prohibited following the notice of a municipal health or safety violation or if the tenant organizes or joins a tenants union. Commissions can also carry out a subsection of the eviction statute (§ 47a-23c (b)).

CONSIDERATIONS IN DETERMINING EXCESSIVE RENT (§ 7-148c)

Commissions must consider a number of factors when determining whether a rental charge is excessive to the point of being “harsh and unconscionable. ” The factors include: (1) rents for comparable units; (2) amount and frequency of rent increases; (3) sanitary conditions; (4) number of bathtubs or showers, toilets, and sinks; (5) services, furniture, and furnishings; (6) bedroom size and number; (7) repairs necessary to make the accommodations livable; (8) amount of taxes and overhead expenses, including debt service; (9) compliance with state and local health and safety laws and regulations; (10) renter's income and housing availability; (11) utility availability; (12) tenant damage to the premises, other than ordinary wear; and (13) the degree to which income from the rent increase will be reinvested in property improvements.

ORDERS BY COMMISSIONS (§ 7-148d)

After holding a hearing on a complaint, a commission can determine that a rent increase is excessive and order “rent be limited to such an amount as it determines to be fair and equitable. ” This appears to mean the commission can set the rent at the rate it believes is fair.

If the housing in question fails to meet local or state health and safety requirements, then the commission can order the suspension of rent payments until the unit meets standards. During the time the rent is not paid to the landlord, it is paid to the commission to hold in escrow and is subject to any provisions adopted by the municipality.

If the commission determines, after holding a hearing, that a landlord has retaliated in any way against a tenant who has complained to it, the commission can order the landlord to cease the retaliation.

PENALTIES AND VIOLATIONS (§ 7-148f)

A landlord violates a rent reduction order or suspension if he or she accepts, receives, or demands an amount in excess of the order while it is in effect and no appeal is pending. Refusing to obey a commission order, subpoena, or decision is also a violation.

Violators may be fined between $ 25 and $ 100. If the offense continues for more than five days, it constitutes a new offense for each additional day beyond five.

APPEAL (7-148e)

Any landlord under any order by a commission may appeal to the Superior Court for the judicial district where the rental property is located.

JH: ro