A bill that would expand the definition of blight to include commercial properties and expand the number of Connecticut communities in which abandoned and blighted property receiverships can be used advanced through the Committee on Judiciary on May 9.
The bill originated in the Joint Committee on Planning and Development and received a joint favorable report on March 20. On May 3, the House of Representatives sent the bill to the judiciary committee on a mandatory referral because it would increase potential fines for blighted properties, as well as impose substantial penalties for subsequent violations.
Under current state law, abandoned and blighted property receiverships can be used in any community with at least 37,000 people. HB 6892 would lower that threshold to any community with at least 15,000 people. The change, which would go into effect on October 1, 2023, is expected to result in a grand list expansion of the value of property in affected municipalities, leading to potential revenue gains for municipalities, the Department of Energy and Environmental Protection, and the general fund in fiscal year 2025.
The bill would also expand the definition of blight to include commercial properties. It would give municipalities new powers to municipalities to take immediate enforcement action against properties that have committed three or more blight violations at the same property within a 12-month period.
It would also raise the maximum daily civil penalty municipalities can impose for blight violations from the current limit of $100 to $150 for occupied property and $250 for vacant property. The maximum penalty for properties that have had three or more blight violations within a 12-month period would increase to $1,000.
Both measures, which would go into effect on October 1, 2023, are expected to potentially increase municipal revenue. The expansion of the definition of blight is expected to result in more civil penalties, resulting in potential municipal revenue gain beginning in fiscal year 2024, should the bill clear the legislature. The number and severity of penalties assessed under the increased daily penalty amount is also anticipated to potentially increase municipal revenue, depending on the type and number of blight variations that occur and the penalty level municipalities choose to assess. This potential revenue boost would also begin in fiscal year 2024.
