CT HB05144

Municipalities may assign tax liens, sewer assessment liens, water charge liens, and similar municipal/regional authority liens to third parties for negotiated consideration, effective October 1, 2024.

Assignees inherit the municipality's collection and foreclosure rights but cannot claim immunity from liability under section 42-110c and must provide payoff statements like mortgagees.

All lien assignments executed on or after July 1, 2022 must be memorialized in written contracts specifying contact information, foreclosure timelines (minimum one year before commencing), attorney's fee structures, third-party beneficiary rights for property owners, and disclosure of assignee litigation history and ethics violations.

For assignments executed on or after July 1, 2025, interest accrues at 12 percent per annum on delinquent amounts and attorney's fees are capped at 15 percent of any judgment entered; assignees cannot collect attorney's fees until commencing foreclosure or suit.

Assignees must provide written notice to property owners and mortgage holders within 60 days of assignment and notify prior security interest holders at least 60 days before commencing foreclosure action.