CT SB01339

Municipalities may assign tax liens, sewer assessment liens, sewerage connection/use charge liens, and water charge liens to third-party assignees for negotiated consideration, with assignees gaining the same enforcement powers as the municipality

For lien assignments executed on or after July 1, 2026, interest on delinquent tax obligations is capped at 12% per annum, and attorney's fees are capped at 15% of any judgment entered

Assignments executed on or after July 1, 2026 require written contracts prohibiting attorney's fees from being collected until foreclosure or suit on debt commences, along with existing disclosure and procedural requirements from 2022 law

Assignees must provide written notice to property owners and mortgage holders within 60 days of assignment, and must give 60 days' written notice to security interest holders before commencing foreclosure

Assignees cannot commence foreclosure until at least one year after purchasing the lien, cannot use foreclosure counsel with financial interest in the assignee, and property owners are designated third-party beneficiaries entitled to enforce contract terms