Bill Targeting Rent Hikes and Discrimination Clears Judiciary Committee

A wide-ranging housing reform bill cleared a key legislative hurdle Friday, advancing out of the Judiciary Committee with provisions aimed at curbing rent hikes and promoting fair housing practices. But while the measure was welcomed by housing advocates and some lawmakers, it also drew notable criticism over its stance on artificial intelligence and legal fee structures.

House Bill 7209, which includes updates to the state’s housing statutes, comes in the wake of rising rent prices across Connecticut. According to a statement, the bill was introduced after U.S. Senator Richard Blumenthal and Attorney General William Tong responded to data showing an average $359 monthly increase in Fair Market Rent over a 19-month period ending in August.

Per the statement, the proposed legislation allows the attorney general to pursue legal action in cases of discriminatory housing practices. It also grants courts the authority to impose attorney fees against losing parties in certain affordable housing disputes, and prohibits the use of specific algorithms and sensitive competitor data in determining rental rates.

“This bill does a few things,” said state Rep. Steve Stafstrom, D-Bridgeport, during the committee debate. “First, it permits the attorney general to bring legal actions in response to discriminatory housing practices. It authorizes the court to assess attorney fees against the losing party in an 8-30g application, and it prohibits residential property owners from using pricing algorithms and competitors’ sensitive data to set rental prices.”

Read more: Oregon Lawmakers Target Algorithmic Price-Fixing in Rental Market

The bill’s provisions under 8-30g—the state’s affordable housing law—would shift more legal leverage toward developers seeking to build affordable units. One of the most contentious parts of the bill was the clause that would allow developers to recoup legal costs from municipalities when denied project approvals.

Republican lawmakers expressed reservations about that aspect, particularly the potential financial burden it could place on towns. State Sen. John Kissel, R-Enfield, while supportive of several elements in the bill, voiced concern over the fee-shifting policy and the enforceability of the AI restrictions.

“I always have a concern when we assess attorney’s fees for the prevailing party,” said Kissel. “That’s the British model. I prefer the American model where you are responsible for your own attorneys’ fees. It can be really punitive when attorneys’ fees are assessed against a losing party.”

He also questioned the practicality of enforcing restrictions on the use of artificial intelligence in rental pricing. According to a statement, Kissel noted the difficulty in detecting algorithmic use by landlords and raised concerns about infringing on privacy rights. “I just think that it’s an area where it would be very difficult to police and I wonder whether it’s even fair,” he said.

Source: House Bill 7209