Stronger Neighborhood Protection Bill Passes Senate

The state Senate has approved legislation to update a law enacted in 2009 that helps protect municipalities from the disrepair and blight of foreclosed properties in Connecticut.

The 2009 bill required a registration system to track the owners of uninhabited one- to four-family dwellings obtained by strict foreclosure or foreclosure by sale, and it allowed municipalities to enforce any provision of the General Statutes or any municipal ordinance on the repair or maintenance of uninhabited real estate.

Under the changes approved in the Senate, banks, mortgage lenders or other property owners would be required to register at the time of lis pendens and again when a formal foreclosure action is filed.

“This action puts a lot more teeth into issue that is rampant in not just our state, but many other states across the country,” Sen. Bob Duff said. “The blight that many times comes along with foreclosed properties is more than unattractive. It brings down neighboring property values and leads to an increase of neighborhood crime. As we continue to cope with the foreclosure crisis in our state, this bill gives municipalities even greater opportunity to enforce blight ordinances and combat some of the negative effects that accompany foreclosure.”

Additionally, property owners would no longer be allowed to register with the Mortgage Electronic Registration System (MERS) and instead would be required to register with the local municipal town clerk.

The legislation—Senate Bill 957, An Act Concerning Neighborhood Protection—was approved unanimously by consent and now moves to the state House of Representatives for consideration. It was previously approved by both the Banks and the Judiciary committees.