Substitute Senate Bill No. 1070 - Summary

• Establishes a receivership process for abandoned and blighted properties in Connecticut municipalities with populations of 35,000 or more, effective January 1, 2020.

• Allows parties in interest (owners, lienholders, residents, development organizations, or municipalities) to petition superior court for appointment of a receiver to rehabilitate or dispose of buildings that have been vacant for 12+ months and meet conditions of abandonment.

• Court may appoint a receiver if it finds the building meets five specific criteria: not legally occupied for 12+ months, owner failed to actively market or sell it, no pending foreclosure by non-governmental entities, owner did not recently acquire it, and at least three of eight additional conditions apply (public nuisance, substantial rehabilitation needed, fire risk, structural hazards, etc.).

• Receiver gains broad powers to take possession, rehabilitate, contract for repairs, borrow money, enter leases, and sell the property free and clear of liens, with proceeds distributed in priority order to court costs, taxes, rehabilitation expenses, and owner.

• Exempts federal government housing under the U.S. Housing Act of 1937 and properties whose owners vacated for active military service or emergency relief efforts.