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Update to COVID-19’s Effects on Landlord–Tenant and Foreclosure Matters

On June 9, 2020, the Connecticut judicial branch issued three orders regarding foreclosure and eviction matters: (1) staying service of all issued executions on evictions and ejectments through August 1, 2020; (2) opening judgments of strict foreclosure entered with law days before August 4, 2020 and extending the law day for the owner of the equity of redemption to August 4, 2020, with subsequent encumbrancers following in reverse order of priorities; and (3) cancelling all foreclosure sales scheduled before August 22, 2020 and opening the judgment in those cases to set a new sale date of August 22, 2020, with committees to incur no additional fees and costs prior to July 15, 2020. 

Then, on June 29, 2020, Governor Lamont issued Executive Order No. 7DDD, which affects previous executive orders regarding residential renters, among others. The new executive order does the following:

  • Orders that no notices to quit be served prior to August 22, 2020, “except for nonpayment of rent due on or prior to February 29, 2020 or serious nuisance” and requires that any notice to quit for nonpayment of rent issued before August 22 specify the period of nonpayment prior to February 29; and
  • Extends the opportunity for residential renters to use their security deposits (provided they exceed one month’s worth of rent) to pay for the rent due in April–August 2020. 

Also on June 29, 2020, Governor Lamont announced a plan to provide assistance to renters, homeowners, and residential landlords affected by COVID-19 with more than $33 million in state and federal resources, including, among other things:

  • $10 million for a rental assistance program;
  • $5 million for eviction prevention of tenants who were in the process of being evicted prior to the health emergency;
  • $10 million for mortgage relief to certain homeowners; and
  • $2.5 million rental assistance program for individuals who are ineligible for emergency assistance through the federal CARES Act.

Many of these programs will be administered through the state Department of Housing and the Connecticut Housing Finance Authority. 

Please feel free to contact the following individuals at Updike, Kelly & Spellacy, P.C. who are part of the UKS COVID-19 Response Team with respect to creditor’s rights and bankruptcy matters. 

Thomas A. Gugliotti is a shareholder and chair of the firm’s Creditors’ Rights practice. He focuses his practice on various forms of creditors’ rights litigation in both state and federal court, including commercial foreclosures and evictions. He can be reached at (860) 548-2661 or tgugliotti@uks.com. 

Evan S. Goldstein is a shareholder and member of the firm’s Bankruptcy and Creditors’ Rights, Commercial Litigation, and General Corporate Counsel practice groups. He has experience representing secured creditors in state and federal court and in workouts, both in and out of court. He can be reached at (860) 548-2609 or at egoldstein@uks.com 

Paul N. Gilmore is a shareholder and member of the firm’s Bankruptcy and Creditors’ Rights, Commercial Litigation, Appellate Law, and Intellectual Property practice groups.  He handles trials and appeals in state and federal courts, and represents clients in diverse industries, solving complex legal problems with a paramount focus on achieving the client’s business objectives.  He can be reached at (860) 548-2641 or pgilmore@uks.com.

Kevin J. McEleney is a shareholder and member of the firm’s Bankruptcy and Creditors’ Rights and Commercial Litigation groups. He has experience representing secured and unsecured creditors in various bankruptcy courts. Outside of bankruptcy, he assists creditors negotiating workouts for matured or defaulted debts. He also litigates business and commercial issues in state and federal court. He can be reached at (860) 548-2622 or kmceleney@uks.com. 

Updike, Kelly & Spellacy, PC would like to thank associate Matthew Stiles for his contributions to this article. 

Disclaimer: The information contained in this material is not intended to be considered legal advice and should not be acted upon as such. Because of the generality of this material, the information provided may not be applicable in all situations and should not be acted upon without legal advice based on the specific factual circumstances.