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Connecticut bill to waive tax interest for a co-op in receivership died on the Senate calendar

Connecticut bill to waive tax interest for a co-op in receivership died on the Senate calendar
Connecticut · Legislation

Connecticut bill to waive tax interest for a co-op in receivership died on the Senate calendar

A Connecticut bill written for a single 924-household housing cooperative cleared committee unanimously, passed the House on a roll call, and then died on the Senate calendar with twelve days left in the session. House Bill 5500 reached the Senate on April 24, 2026 as Senate Calendar No. 453 and was never called before adjournment on May 6.1

It is the clearest example this session of a common-interest-community measure failing for reasons unconnected to opposition.

What it would have done

The bill was titled “An Act Concerning the Abatement or Refund of Interest on Delinquent Municipal Property Taxes or Sewerage System Use Charges Owed by Certain Common Interest Communities.”

It would have allowed a municipality, by vote of its legislative body, to waive or refund some or all of the interest on delinquent property taxes owed by a common interest community that has more than 500 units and is in Superior Court-ordered receivership. House Amendment Schedule A extended the same power to water pollution control authorities for delinquent sewer use charges.1

The eligibility test is narrow enough to be an address. The target was Success Village, the cooperative straddling Bridgeport and Stratford that has been in receivership since 2024.

The history, which is the story

Referred to Planning and Development on March 5, 2026. Public hearing March 11. Reported out joint favourable substitute, 21-0, on March 13. File No. 336, House Calendar 255. Passed the House on April 22, 2026 as amended, on roll call votes 86 and 87. Tabled for the Senate calendar on April 24 as File No. 718.

Then nothing. The bill history ends there — no Senate vote, no transmittal to the Secretary of the State, no public act number.1

Sponsors included Reps. Gresko, Gee, Rosario, Felipe, Brown, Baker, Stafstrom and McGorty, and Sens. Gaston, Gadkar-Wilcox and Perillo. No recorded opposition appears anywhere in the file.

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The relief happened anyway — by a different route

This is the part that keeps the story from being simply a failure. The bill died; the residents got relief regardless, through municipal action rather than state legislation.

Bridgeport's mayor and Stratford's mayor filed joint testimony supporting the bill on March 11, 2026, describing the refund of interest and penalties accrued since July 1, 2022 and stating plainly: “The residents of Success Village are the victims of this mismanagement, not the cause.”2

In June 2026, after the session ended, the Bridgeport City Council approved a refund reported at roughly $437,000 for Success Village residents.3 By September, the receiver's own account of the co-op's finances described the municipal debts as resolved.

So the practical question the bill was meant to answer — whether a municipality could relieve interest for a receivership community — was answered locally while the statutory authorisation lapsed.

Why the statutory gap still matters

The relief in Bridgeport rested on municipal decisions in a case with unusual political salience: two mayors, a court-appointed receiver, a federal investigation and sustained press coverage. That is not a template a smaller community can rely on.

HB 5500 would have put the power on a statutory footing, available to any qualifying community by a vote of the local legislative body. Without it, an association in receivership elsewhere in Connecticut is negotiating from nothing, and the arithmetic is unforgiving: interest and penalties on delinquent municipal taxes compound while the receivership is precisely the period in which the community has no capacity to pay them.

The 500-unit threshold, and who it excludes

The eligibility line drawn in the bill — more than 500 units, in Superior Court-ordered receivership — would have excluded almost every Connecticut association. Connecticut has roughly 5,200 community associations, and very few approach that size.

Whether a future version broadens the threshold is the question worth watching. A narrower bill is easier to pass because it affects one identifiable community; it is also easier to leave sitting on a calendar, because nobody outside that community is pressing for it. HB 5500's fate suggests both halves of that trade-off operated.

What this does not change

Municipal property taxes on units in a Connecticut common interest community are assessed against the individual units, not the association, and this bill did not alter that. What produced the problem at Success Village was a cooperative structure in which the corporation carries obligations that a failure of governance converted into a collective delinquency.

Associations concerned about the interaction of municipal charges and common expense liability should note that a separate 2025 proposal, House Bill 5189, would have let municipalities reduce the assessed value of units in communities that no longer receive certain municipal services. It died in the Planning and Development Committee without a hearing.4

What to watch next

The 2027 long session convenes in January. A bill that passed one chamber unanimously and drew no recorded opposition is the kind that returns, but nobody has said it will, and Connecticut bills do not carry over — a 2027 version starts again in committee.

The more immediate thing to watch is Success Village itself, where the receiver has begun the transition back to resident control while the community still faces annual steam-system costs running to several hundred thousand dollars.

Related Connecticut HOA Topics

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  1. HB 5500 (2026) bill status and complete history — House passed April 22, 2026; Senate Calendar No. 453; no further action
  2. Joint testimony of the mayors of Bridgeport and Stratford in support of HB 5500, City of Bridgeport (March 11, 2026)
  3. Bridgeport Council Approves $437K Refund for Success Village Residents, CT Examiner (June 2, 2026)
  4. HB 5189 (2025), tax assessment of units where municipal services are reduced — died in committee

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