Will CT’s New Housing and Development Laws Help or Hurt Your Property Value?

New housing laws at the Capitol could impact suburban property values — is your home next on the market?

As the Connecticut General Assembly races toward its June 4 adjournment, a slate of bills are gaining attention — not just for their policy goals but for their ripple effects across the state’s real estate market. From housing supply and redevelopment opportunities to broader quality-of-life enhancements, these legislative moves have implications that homeowners, renters, investors, and landlords should understand.

Revitalizing Communities: Brownfield Redevelopment Bill

One of the most impactful real estate-related bills to gain traction is the state’s major economic development legislation targeting over 2,600 brownfield properties — former industrial or commercial sites affected by environmental contamination. The bill, passed unanimously by the House, unlocks funds to clean up these areas and encourages their redevelopment.

Why does this matter to the housing market? Cleaned and revitalized brownfields can quickly become the sites of new residential communities, mixed-use developments, or small business hubs — all of which elevate property values and neighborhood vitality. The economic impact is expected to reach $3.75 billion, along with more than 2,000 new jobs.

For real estate investors and developers, this opens a window of opportunity to be part of community reinvention — with the added potential of incentives and government backing.

Zoning and Affordability: Multi-Family Housing and TOD Proposals

Housing affordability remains a statewide concern, and lawmakers are advancing proposals to address it through zoning reform. One bill would prevent municipalities from outright banning multi-family housing — a policy shift that could diversify housing stock and expand rental availability in suburbs and small towns.

Another notable initiative, the “Work, Live, Ride” bill, aims to encourage higher-density housing near transit hubs. By aligning housing growth with transportation infrastructure, the bill supports more walkable, connected communities — a factor that increasingly attracts both renters and buyers, especially younger professionals.

These proposals, if passed, could reconfigure how and where Connecticut grows, making areas once considered commuter corridors into vibrant residential zones.

Landlord-Tenant Dynamics: Just Cause Eviction Bill Stalls

On the tenant protection front, a bill requiring landlords to provide a valid reason when choosing not to renew a lease — known as “just cause eviction” — failed to advance. While tenant advocacy groups expressed disappointment, many property owners saw the stalled legislation as a reprieve from what they viewed as restrictive policy.

Still, the conversation around tenant rights is far from over. Whether it's new rent control discussions, potential future eviction reforms, or local housing code updates, landlords face an evolving regulatory environment that can be hard to track alone.

If you're a landlord feeling uncertain about how new or proposed laws might affect your obligations — or you’re simply ready to step away from managing a property — it might be time to consider professional support. Whether you need help staying compliant, finding quality tenants, or are thinking about selling altogether, we offer discreet, knowledgeable property management and sales services to help you navigate next steps with confidence.

Other Legislative Moves Touching the Real Estate Landscape

While not directly tied to housing policy, several other legislative developments have implications worth noting:

• Reckless Driving Law: New penalties for excessive speeding aim to make neighborhoods safer — and safer streets often translate into more desirable places to live.

• Digital Currency and Asset Seizure: A new law recognizes digital currencies as legal property for asset seizure, helping clarify how crypto assets may be treated in real estate transactions — a growing concern for crypto-savvy investors.

• Voting Infrastructure Improvements: Faster deployment of modern voting machines signals stronger civic infrastructure — a subtle but meaningful boost to community confidence and long-term stability, both important to homebuyers.

Looking Ahead

Connecticut’s 2025 legislative session is poised to shape the state’s real estate dynamics for years to come. From boosting redevelopment to rethinking housing density and zoning, the decisions made now will influence investment strategies, property values, and neighborhood growth trajectories across the state.

Whether you're a homeowner, investor, or landlord, staying informed — and supported — is key. For personalized guidance on how these developments might impact your properties or plans, don’t hesitate to reach out.

HB 6889 Will Likely Hurt the Very Tenants It Aims to Protect

A new bill making its way through the Connecticut General Assembly, House Bill 6889, aims to implement what's known as "Just Cause Eviction" protections. At first glance, it might sound like a step toward fairness for renters. But when you take a closer look at how this bill would actually work in practice, it becomes clear that HB 6889 would have devastating consequences — not just for housing providers, but for the very tenants it claims to protect.

If passed, HB 6889 would dramatically restrict a landlord’s ability to non-renew a lease unless a "just cause" can be proven, such as failure to pay rent or breach of lease. While it may seem reasonable in theory, the reality on the ground paints a very different picture.

Let’s explore why this bill is dangerous, short-sighted, and ultimately harmful to both tenants and housing providers.

❌ How HB 6889 Hurts Tenants

1. Reduces Available Housing Many small landlords — who already operate on tight margins — will opt to sell their properties or convert them to other uses instead of continuing to rent under increasingly restrictive conditions. This will shrink the rental housing supply, especially in urban areas like New Britain and Hartford.

2. Tougher Screening for New Tenants When housing providers lose the ability to legally end a tenancy without a court fight, they become more risk-averse. That means applicants with lower credit, prior evictions, or limited income may be denied housing — even if they’ve turned their lives around. This will disproportionately affect vulnerable populations and increase homelessness.

3. Creates Hostile Living Situations If a landlord can’t simply choose not to renew a lease, even in cases where a tenant is disruptive but not technically in lease violation, both the tenant and the surrounding neighbors are forced to endure ongoing tension. This creates unsafe or unstable environments for everyone involved.

4. Discourages Property Improvements Investors trying to renovate properties or upgrade units will be bogged down by new procedural hurdles. In areas where housing desperately needs revitalization, this bill sends the message: “Don’t invest here.”

❌ How HB 6889 Hurts Housing Providers

1. Chases Away Private Investment No one wants to invest capital in a market where you can’t manage your own asset. By taking away basic property rights, HB 6889 sends a clear warning to developers and investors: Connecticut isn’t worth the risk.

2. Makes It Nearly Impossible to Remove Squatters Under this bill, even unauthorized occupants could be protected, making it incredibly difficult to remove individuals who have no legal right to occupy a property.

3. Allows Unruly Tenants to Stay Indefinitely Even if a tenant receiving 100% rental assistance is disturbing neighbors or damaging property, the bill could tie the landlord’s hands. It would take time, legal expense, and documentation — all while other tenants suffer.

4. Forces Stricter Screening Standards Landlords will be forced to raise their tenant criteria to avoid long-term risks. This will lock out tenants with past financial issues or minor rental history blemishes, pushing them further into housing insecurity.

5. Restricts Bank Lending on Multifamily Properties Banks often lend on multifamily dwellings under the assumption they can regain possession after foreclosure. HB 6889 would make this nearly impossible, turning banks into reluctant landlords and drying up critical financing for Connecticut housing stock.

📣 It’s Time to Take Action

If you believe HB 6889 is a step in the wrong direction, your voice is needed now more than ever. Most state lawmakers rarely hear from constituents, so when they receive even a handful of emails on a specific bill, it gets their attention.

Here’s how you can make an impact:

✅ Find your State Representative here: https://www.cga.ct.gov/asp/menu/cgafindleg.asp Just enter your address and you’ll be shown who represents your district.

✅ Send them an email or call their office — let them know you oppose HB 6889 and explain why.

✅ Share this article with others in your community. The more people who speak up, the more likely we are to protect Connecticut’s housing future.

If we want a fair and functional housing market, we must pass policies that balance tenant protections with landlord rights — not tilt the scale so far that we dismantle the very system tenants rely on.

Let’s work toward real housing solutions — not reactionary policies that backfire on the people they’re meant to help.

Landlords, READ THIS: Major Connecticut Housing Bills Could Change Everything in 2025

As of spring 2025, several bills moving through the Connecticut General Assembly could significantly impact how landlords operate. While aimed at strengthening tenant protections, these proposals—if signed into law—would introduce new limitations, procedures, and financial obligations for housing providers across the state.

This article offers a detailed breakdown of the most relevant bills, where they stand in the legislative process, and how they could affect your responsibilities as a landlord. It also provides guidance on how landlords can take action, whether in support or opposition.

🏛️ Overview of the Bills

Bill Number	Subject	Current Status
HB 6889	Just Cause Eviction Expansion	Reported Favorably by Housing Committee
HB 6891	Security Deposit Cap	Reported Favorably by Housing Committee
HB 6892	Rent Increase Limits After Ownership Change	Reported Favorably by Housing Committee
HB 6939	State Funding for Right to Counsel Program	Reported Favorably by Housing Committee
HB 6943	Tenant Protections: Fees, Notices, and More	Reported Favorably by Housing Committee

🧾 1. HB 6889 — An Act Concerning Evictions for Cause

Summary: This bill would prohibit landlords from ending tenancies by simply allowing leases to lapse (“no-fault” or “lapse of time” evictions) in many multi-unit buildings and mobile home parks. Instead, eviction would only be allowed for specific “just cause” reasons.

Key Provisions:

• Applies to tenants who have lived in a building or park with 5+ units for at least 13 months, even if they are not elderly or disabled.

• Evictions must be for reasons such as:

  • Nonpayment of rent

  • Material lease violations

  • Nuisance or health/safety issues

  • Refusal to accept a fair rent increase

  • Removal of the unit from the housing market

  • Personal use by the landlord or a close relative (under strict conditions)

• Prohibits enforcement of certain eviction grounds during an active lease term.

• Expands requirement for landlords to provide tenants with written notice of their rights, with updated versions in multiple languages by 2028.

Impact on Landlords:

• Loss of flexibility to end month-to-month or expired leases without proving cause.

• Risk of being tied into long-term relationships with tenants even after lease terms end.

• Increased administrative work to document violations and justify rent increases.

• May influence how landlords screen new tenants to mitigate risk.

Effective Date: October 1, 2025

💰 2. HB 6891 — Security Deposit Limit

Summary: Caps all residential security deposits at one month’s rent, regardless of tenant age.

Key Provisions:

• Replaces current law allowing two months’ rent for tenants under 62.

• Requires landlords to return the excess if they’ve already collected more than one month from any tenant.

Impact on Landlords:

• Reduces financial security for landlords when leasing to higher-risk tenants.

• May increase exposure to unpaid rent or damage.

• Could lead landlords to raise monthly rent to compensate for increased risk.

Effective Date: July 1, 2025 (applies to rental agreements signed on or after this date)

📈 3. HB 6892 — Rent Increase Restrictions After Property Transfer

Summary: Restricts how much a new property owner can raise rents within the first year after acquiring a rental property.

Key Provisions:

• Any rent increase over 10% during the first 12 months post-sale is presumed excessive unless:

  • The new owner has completed major renovations involving at least two primary building systems (e.g., plumbing, electrical, HVAC).

Impact on Landlords:

• Newly acquired properties may be subject to rent increase limitations, even if the previous owner had below-market rents.

• Could affect the valuation and investment appeal of rental properties.

• Adds uncertainty when underwriting acquisitions or planning capital improvements.

Effective Date: July 1, 2025

⚖️ 4. HB 6939 — Funding for the Right to Counsel Program

Summary: Allows state funds to be used to support the Right to Counsel program, which provides free legal representation for income-eligible tenants facing eviction or subsidy termination.

Key Provisions:

• Administered by the Judicial Branch through contracts with nonprofit legal aid providers.

• Includes outreach and education components.

• Program has been federally funded to date; this bill opens the door for state tax dollars to support ongoing operations.

Impact on Landlords:

• More tenants will have legal representation, potentially prolonging or complicating the eviction process.

• Could increase court costs or negotiation time during disputes.

• May lead to higher legal fees or need for landlords to retain counsel in more cases.

Effective Date: July 1, 2025

📑 5. HB 6943 — Broader Tenant Protections

Summary: This wide-reaching bill adds various new requirements and prohibitions to landlord-tenant relationships.

Key Provisions:

• Late fees & surcharges: Prohibits lease clauses charging extra rent for month-to-month tenancies or holdover situations.

• Accounting transparency: Requires landlords to provide a payment ledger on request.

• Unfair lease terms: Makes it an unfair trade practice to market or use leases that include illegal or unenforceable terms.

• Rent increase notices: Must be in writing and include a statement about the tenant's right to file a fair rent complaint (if applicable).

Impact on Landlords:

• Restricts rent pricing flexibility for month-to-month tenants.

• Landlords will need to ensure all lease templates are fully compliant to avoid being cited for unfair business practices.

• May increase tenant disputes and fair rent commission complaints.

Effective Date: July 1, 2025

🗳️ What Can Landlords Do?

These bills have passed the Housing Committee and are moving through the General Assembly. Here's how you can get involved:

✅ Take Action:

1. Contact Your Legislators

   • Visit cga.ct.gov and search for your representatives.

   • Call or email to express how these bills would impact you as a housing provider.

2. Submit Testimony

   • For bills that haven’t yet had a full House or Senate vote, submit public comment or testimony through the Connecticut General Assembly portal.

3. Join Landlord Associations

   • Collaborate with organizations like the Connecticut Apartment Association (CTAA) or regional landlord groups to amplify your voice.

4. Stay Informed

   • Monitor the bill statuses at cga.ct.gov.

   • Sign up for alerts through your local real estate board or housing coalition.

📌 Staying Ahead of The Curve

While tenant protections are an important aspect of housing policy, the breadth of these bills—particularly the just cause eviction limits and rent control-style restrictions—marks a significant shift in Connecticut’s landlord-tenant law. If enacted, these measures will require landlords to adapt business practices, update leases, and consider new risk mitigation strategies.

Whether you manage a handful of units or operate a large portfolio, now is the time to review how these proposals might affect your properties—and to make your voice heard in the legislative process.

🏠 Need Help Managing Your Property?

Navigating new laws can be overwhelming—especially with changes that impact evictions, rent increases, and lease agreements. If you're feeling uncertain about the future or simply want to offload the day-to-day stress of managing tenants and compliance, we’re here to help.

📞 Contact us below to learn more about our full-service property management solutions. Let us handle the headaches—so you can focus on the returns.

⚖️ Disclaimer

Please note: We are not attorneys, and nothing in this article should be interpreted as legal advice. The summaries and interpretations provided are for general informational purposes only. If you have specific questions or concerns about how these proposed laws may affect your rights or responsibilities as a landlord, we strongly encourage you to consult with a qualified attorney.

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