HB 6751 Summary

• Municipalities, sewer authorities, and water authorities can assign tax liens, sewer assessment liens, and water charge liens to third parties for negotiated consideration, effective October 1, 2023.

• Assignees receive the same enforcement powers as the original municipality or authority, including foreclosure rights and lien priority, but cannot claim liability protections under Connecticut law.

• Assignments executed on or after July 1, 2022 must be memorialized in written contracts specifying communication methods, foreclosure timelines (minimum 1 year after purchase), attorney's fee structures, and disclosure of the assignee's litigation history and ethics violations.

• For assignments after July 1, 2024, interest accrues at 12 percent per annum on delinquent amounts, attorney's fees are capped at 15 percent of judgments, and no attorney's fees can be collected until foreclosure or suit commences.

• Property owners must receive notice within 60 days of assignment and 60 days before foreclosure, with detailed information about the debt amount, assignee contact information, and payment options.