Substitute Senate Bill No. 418
Substitute Senate Bill No. 418
PUBLIC ACT NO. 97-320
AN ACT CONCERNING NOTICE TO HOMEOWNER OF
PROTECTIONS FROM FORECLOSURES AND CONCERNING
PREVENTION OF NEIGHBORHOOD BLIGHT.
Be it enacted by the Senate and House of
Representatives in General Assembly convened:
Section 1. Section 49-31e of the general
statutes is repealed and the following is
substituted in lieu thereof:
(a) In an action by a lender for the
foreclosure of a mortgage of residential real
property, such lender shall give notice to the
homeowner of the availability of the provisions of
sections 49-31d to 49-31i, inclusive, at the time
the action is commenced.
(b) A homeowner who is given notice of the
availability of the provisions of sections 49-31d
to 49-31i, inclusive, must make application for
protection from foreclosure within [fifteen]
TWENTY-FIVE days of the return day.
(c) No judgment foreclosing the title to real
property by strict foreclosure or by a decree of
sale shall be entered unless the court is
satisfied from pleadings or affidavits on file
with the court that notice has been given to the
homeowner against whom the foreclosure action is
commenced of the availability of the provisions of
sections 49-31d to 49-31i, inclusive.
(d) If a homeowner against whom the
foreclosure action is commenced was not given
notice of the availability of the provisions of
sections 49-31d to 49-31i, inclusive, at the time
the action was commenced, and such homeowner was
eligible to apply for protection from foreclosure
at such time, the court, upon its own motion or
upon the written motion of such homeowner, may
issue an order staying the foreclosure action for
fifteen days during which period the homeowner may
apply to the court for protection from foreclosure
by submitting an application together with a
financial affidavit as required by subsection (a)
of section 49-31f.
Sec. 2. Section 49-4b of the general statutes
is repealed and the following is substituted in
lieu thereof:
(a) If an open-end mortgage meets the
requirements of this section, such mortgage shall
BE DEEMED TO GIVE SUFFICIENT NOTICE OF THE NATURE
OF THE OBLIGATION TO secure the obligation of any
person who is secondarily liable for an open-end
loan, including (1) a commercial revolving loan,
as defined in subsection (c) of section 49-2,
without regard to whether the authorized amount of
indebtedness of such revolving loan constituting
the underlying obligation shall at that time or at
any time have been fully advanced, (2) future
advances under such open-end loan, to the extent
that such mortgagor is secondarily liable for such
future advances, and (3) a letter of credit. Such
mortgagor's secondary liability for such future
advances shall be secured by such open-end
mortgage equally with the obligation secured by
such mortgage at the time of recording such
mortgage deed and shall have the same priority
over the rights of others who may acquire any
rights in, or liens upon, the mortgaged real
estate subsequent to the recording of such
mortgage deed.
(b) The heading of such mortgage deed shall
be clearly entitled "Open-End Mortgage".
(c) The loan constituting the underlying
obligation for which the mortgagor is secondarily
liable, which secondary liability is secured by
such open-end mortgage, shall be described in such
open-end mortgage deed. A description of such loan
meets the requirements of this subsection if such
open-end mortgage deed states: (1) The name and
address of the person who is primarily liable for
such loan; (2) that such underlying obligation
specifically permits such advancements and, if
applicable, that such advancements are made
pursuant to a revolving loan agreement; (3) the
full amount of the loan authorized; and (4) the
[terms of repayment of such] MAXIMUM TERM OF THE
loan.
(d) The secondary liability of the mortgagor
shall be described in such open-end mortgage deed.
A description of such secondary liability meets
the requirements of this subsection if such
open-end mortgage deed states: (1) The full amount
of the obligation of the mortgagor if such amount
is different from the full amount of the loan
authorized for the underlying obligation; AND (2)
the date, if any, on which the secondary liability
of the mortgagor will terminate. [; (3) the
conditions, if any, which will cause the mortgagor
to pay all or part of the loan constituting the
underlying obligation; and (4) the conditions, if
any, which will relieve the mortgagor of liability
for all or any part of the loan constituting the
underlying obligation or which will release all or
part of the mortgaged premises from the lien of
such open-end mortgage.]
(e) As used in this section, "mortgagee"
includes any assignee of the mortgagee, and
"mortgagor" includes any assignee of the
mortgagor, and "any person who is secondarily
liable" [means] INCLUDES any person who [is
secondarily liable for or who is also liable for,
or who] has guaranteed or endorsed an open-end
loan.
(f) NOTHING IN THIS SECTION, AS IN EFFECT
BOTH BEFORE AND AFTER THE EFFECTIVE DATE OF THIS
ACT, INVALIDATES ANY MORTGAGE THAT WOULD BE VALID
WITHOUT THIS SECTION.
Sec. 3. (NEW) Any unpaid fine imposed by a
municipality pursuant to the provisions of an
ordinance regulating blight, adopted pursuant to
subparagraph (H)(xv) of subdivision (7) of
subsection (c) of section 7-148 of the general
statutes, as amended by section 4 of this act,
shall constitute a lien upon the real estate
against which the fine was imposed from the date
of such fine. Each such lien may be continued,
recorded and released in the manner provided by
the general statutes for continuing, recording and
releasing property tax liens. Each such lien shall
take precedence over all other liens filed after
the effective date of this act and encumbrances
except taxes and may be enforced in the same
manner as property tax liens.
Sec. 4. Subparagraph (H)(xv) of subdivision
(7) of subsection (c) of section 7-148 of the
general statutes is repealed and the following is
substituted in lieu thereof:
Make and enforce regulations preventing
housing blight, INCLUDING REGULATIONS REDUCING
ASSESSMENTS, provided such regulations define
housing blight.
Sec. 5. (NEW) The assessor of any
municipality that has adopted an ordinance
pursuant to subparagraph (H)(xv) of subdivision
(7) of subsection (c) of section 7-148 of the
general statutes, as amended by section 4 of this
act, may reduce the assessment of any building
that has been rehabilitated in accordance with the
provisions of such ordinance. The assessment shall
be adjusted after the building is rehabilitated.
The adjusted assessment shall reflect the value of
the structure prior to rehabilitation. The
adjusted assessment shall be applicable for a
period determined in accordance with the
provisions of the ordinance.
Sec. 6. Section 49-73b of the general
statutes is repealed and the following is
substituted in lieu thereof:
(a) Any municipality which has incurred
expenses for the inspection, repair, demolition,
removal or other disposition of any real estate
[damaged by fire] in order to secure such real
estate or to make it safe shall have the right to
recover such expenses from the owner of the real
estate for which such expenses were incurred.
(b) The interest of each person in such real
estate shall be subject to a lien for the payment
of such expenses, which lien shall take precedence
over any other encumbrance except municipal tax
assessments on such real estate. No such lien
shall be valid, unless the municipality, within
thirty days after such work has ceased, files a
certificate of such lien and gives notice to the
owner of the real estate in the same manner as
provided in section 49-34.
(c) The interest of each person in the
proceeds of any policy providing fire insurance
coverage issued by an insurance company, including
any policy written pursuant to the provisions of
section 38a-670, shall be subject to a lien on
such proceeds for the expenses incurred by a
municipality pursuant to the provisions of
subsection (a) of this section, provided such
municipality, within thirty days after such work
has ceased, files a certificate of such lien and
gives notice to such interested person in the same
manner as provided in section 49-34.
(d) Any municipal lien filed pursuant to the
provisions of this section may be foreclosed in
the same manner as a mortgage.
(e) Any certificate of lien filed pursuant to
this section shall exist from the fifteenth day
succeeding the date of entry of such certificate
in the land records.
(f) Any municipal lien filed pursuant to this
section may be discharged or dissolved in the
manner provided in sections 49-35a to 49-37,
inclusive.
(g) Nothing in this section shall prevent an
insured owner, mortgagee, assignee or other
interested party from negotiating a dissolution of
any such lien on the fire insurance proceeds,
enabling the insurance company to disburse said
proceeds.
(h) The provisions of this section shall not
apply to policies on single-family or two-family
dwellings.
Sec. 7. Section 12-182 of the general
statutes is repealed and the following is
substituted in lieu thereof:
Whenever used in sections 12-182 to 12-194,
inclusive, "municipality" has the meaning given it
in section 12-141 and "tax" includes each property
tax or assessment and each instalment and part
thereof due a municipality, with any interest or
other lawful charges incident thereto. In addition
to other remedies provided by law, the tax
collector of any municipality may bring in its
name an action in the nature of an action in rem
to foreclose a tax lien or liens on real estate
the fair market value of which, in his judgment,
is less than the total of the amounts due upon the
tax liens and other encumbrances upon the property
so liened and is not more than [twenty] FIFTY
thousand dollars with respect to any one parcel.
No judgment shall be rendered in such proceeding
for the recovery of a personal judgment against
the owner of the property subject to such lien or
liens or any person having an interest therein.
Sec. 8. Section 12-183 of the general
statutes is repealed and the following is
substituted in lieu thereof:
The tax collector may, by his attorney, not
more than once in each calendar year, file in the
office of the clerk of the superior court for the
judicial district in which the property is
situated, a petition in the name of the
municipality for the foreclosure of any tax lien
or liens on the respective properties so liened,
and may include in one petition any number of such
properties, each of which shall be numbered
serially. Such petition shall be addressed to the
court, as above stated, and shall be substantially
by its tax collector hereunto subscribing,
herewith submits a list of properties located in
taxes and states that in his judgment the fair
market value of each of such properties is not
more than [twenty] FIFTY thousand dollars and such
value is less than the total amount due upon tax
liens and other encumbrances thereon." A list of
the various parcels of property sought to be
foreclosed shall follow, containing, as to each
parcel, the following information: (a) A
description sufficient to identify each parcel
affected by any such tax lien. The latest
description of such parcel as appears of record
shall be considered a sufficient description and,
in all cases in which such parcel can be further
identified by a known street address, such address
shall be included in the description; (b) the
name, residence and, if known, the address of the
owner or owners of such parcel as they appear on
the most recent assessment list of the taxing
district wherein such property is located; (c) the
principal of such tax due thereon, the amount of
which, with interest, if any, and the fees and
other charges, is secured by such lien and the
date or dates when the principal of such tax
becomes due; (d) the name, residence and, if
known, the address, of each present record holder
of any interest in, or encumbrance on, such liened
property and the nature and amount thereof, as
disclosed by the land records; (e) the last day of
the period during which such property may be
redeemed, which shall be the last day of the
fourth month after the month in which the list is
filed in court. Such petition shall be verified by
the oath of the tax collector that the information
contained therein is true to the best of his
knowledge and belief.
Sec. 9. Section 12-185 of the general
statutes is repealed and the following is
substituted in lieu thereof:
If the report of the appraisers shows that
the fair market value of any parcel of property
listed in such petition is greater than the total
of the amounts due upon the tax lien or liens and
the recorded principal amounts of all other
encumbrances thereon or is more than [twenty]
FIFTY thousand dollars, the clerk shall write the
word "Withdrawn" opposite the item of property on
the list and thereafter such property shall not be
within the scope of the proceeding.
Sec. 10. Section 29-253 of the general
statutes is repealed and the following is
substituted in lieu thereof:
(a) The State Building Code, including any
amendment to said code adopted by the State
Building Inspector and Codes and Standards
Committee, shall be the building code for all
towns, cities and boroughs.
(b) Nothing in this section shall prevent any
town, city or borough from adopting an ordinance
governing the demolition of [hazardous] buildings
DEEMED TO BE UNSAFE.
[(c)] AS USED IN THIS SUBSECTION, "UNSAFE
BUILDING" MEANS A BUILDING THAT CONSTITUTES A FIRE
HAZARD OR IS OTHERWISE DANGEROUS TO HUMAN LIFE OR
THE PUBLIC WELFARE.
Sec. 11. This act shall take effect from its
passage, except that sections 3 to 10, inclusive,
shall take effect July 1, 1997, and section 1
shall take effect October 1, 1997.
Approved July 10, 1997