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Bill

SB 1098

AN ACT ESTABLISHING A TENANT OPPORTUNITY TO PURCHASE PROGRAM.

2025 Regular Session Introduced by Herron Gaston and 1 co-sponsor

Connecticut bill grants residential tenants right of first refusal to purchase rental homes before owner sales, aiming to reduce displacement and build tenant wealth through homeownership.

REF. TO JOINT COMM. ON Housing
#homeownership #landlordandtenant
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Bill Summary · SB 1098

Legislative bill overview

SB 1098 establishes a formal "Tenant Opportunity to Purchase" (TOPA) program in Connecticut that would give residential tenants the right of first refusal to purchase their rental property before the owner sells it to a third party. The bill creates a structured process requiring property owners to notify tenants of pending sales and provide them with a defined period to arrange financing and make a purchase offer matching market terms.

Why is this important

TOPA programs address housing affordability and stability by enabling long-term tenants to build equity in their homes rather than losing housing through displacement when properties are sold. This is particularly significant in Connecticut's tight rental market, where rising property values and investor purchases often result in rent increases or evictions. The policy affects the balance between property owner rights and tenant economic security.

Potential points of contention

  • Property owner burden: Requiring notification periods and matching offers may delay sales, increase transaction complexity, and limit owners' ability to quickly sell or choose buyers
  • Financing accessibility: Tenants must secure mortgage financing within the notice period; low-income renters may lack credit history or down payment capacity, making the "opportunity" theoretical rather than practical
  • Program administration costs: Establishing enforcement mechanisms, tracking sales, and managing disputes requires government resources and oversight infrastructure
  • Market impact uncertainty: Unclear whether the program would meaningfully increase homeownership or primarily benefit already-stable, higher-income tenants

Compiled from official sources — confirm details with the bill’s official record.

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