Connecticut HB 5209: AN ACT CONCERNING LONG-TERM CARE INSURANCE PREMIUM RATES.

Bill Text

LCO No. 1577 1 of 6

General Assembly Raised Bill No. 5209
February Session, 2026 LCO No. 1577

Referred to Committee on BANKING

Introduced by:
(BA)

AN ACT ESTABLISHING VARIOUS REQUIREMENTS REGARDING
SHARED APPRECIATION AGREEMENTS.
Be it enacted by the Senate and House of Representatives in General
Assembly convened:

Section 1. Subsection (a) of section 36a-498i of the 2026 supplement to 1
the general statutes is repealed and the following is substituted in lieu 2
thereof (Effective October 1, 2026): 3
(a) As used in this section and section 2 of this act, "mortgage lender" 4
and "shared appreciation agreement" have the same meanings as 5
provided in section 36a-485. 6
Sec. 2. (NEW) (Effective October 1, 2026) (a) (1) The interest charged 7
pursuant to a shared appreciation agreement shall be (A) simple 8
interest, and (B) calculated on the basis of the lump sum payment paid 9
by the borrower to the lender at the time when the loan matures. 10
(2) Notwithstanding the provisions of section 37-9 of the general 11
statutes, each shared appreciation agreement shall be subject to the 12
provisions of sections 37-1 and 37-4 of the general statutes. 13

Raised Bill No. 5209

LCO No. 1577 2 of 6

(b) A shared appreciation agreement shall not: 14
(1) Contain any provision that requires the borrower to occupy the 15
property that is the subject of the shared appreciation agreement or 16
otherwise prevents the borrower from using such property as the 17
borrower chooses; 18
(2) Contain any provision that prevents the borrower from 19
refinancing a mortgage or lien or obtaining a subordinate mortgage or 20
lien against the property that is the subject of the shared appreciation 21
agreement; 22
(3) Require the borrower to pay more than half of any cost actually 23
paid to any third party associated with the origination, servicing or 24
satisfaction of the shared appreciation agreement; 25
(4) Require the borrower to pay any fee or cost to any mortgage 26
servicer or the lender after origination, except for any bona fide charge 27
paid to a third party; 28
(5) Include a prepayment penalty or otherwise require payment of 29
any additional sum to satisfy or otherwise terminate the shared 30
appreciation agreement at any point before its scheduled maturity date 31
or termination date; 32
(6) Contain any provision restricting or waiving the substantive or 33
procedural rights or remedies available to the borrower at law or in 34
equity; 35
(7) Charge the borrower for any attorney's fees or legal costs incurred 36
by the lender arising from any dispute, claim or legal proceeding related 37
to the loan, regardless of the outcome of such dispute, claim or 38
proceeding; 39
(8) Include a confidentiality provision regarding the terms of the 40
shared appreciation agreement or any dispute related to the shared 41
appreciation agreement; or 42

Raised Bill No. 5209

LCO No. 1577 3 of 6

(9) Contain a provision allowing the lender to alter any term of the 43
shared appreciation agreement without the express written consent of 44
the borrower. 45
(c) The terms of a shared appreciation agreement shall contain: 46
(1) A provision requiring the lender to provide to the borrower at 47
least ninety days' advance written advance notice of any action required 48
of the borrower under the terms of the shared appreciation agreement, 49
which, if not timely taken by the borrower, will affect the rights or 50
interests of the borrower under such agreement; 51
(2) A provision requiring the lender to provide to the borrower, not 52
later than three business days after the lender receives a request from 53
the borrower for the same and at no cost to the borrower, a payoff quote 54
that itemizes everything for which the borrower is liable to pay to the 55
lender; 56
(3) A provision requiring the lender to provide to the borrower, not 57
later than three business days after the lender receives a request from 58
the borrower for the same, a written description of the process for 59
terminating the shared appreciation agreement; 60
(4) A provision specifying that the borrower shall receive credit for 61
all improvements made to the property that is the subject of the shared 62
appreciation agreement in an amount equal to the total amount paid for 63
all such improvements or any increase in the appraised value of such 64
property resulting from such improvements, whichever is greater; 65
(5) A provision stating that the value of any adjustments for lack of 66
maintenance or for improvements shall be determined by a property 67
appraisal conducted by a certified or licensed appraiser in accordance 68
with the Uniform Standards of Professional Appraisal Practice issued 69
by the Appraisal Standards Board of the Appraisal Foundation 70
pursuant to Title XI of FIRREA, as amended from time to time; 71

Raised Bill No. 5209

LCO No. 1577 4 of 6

(6) A provision stating that any property valuation required by the 72
shared appreciation agreement, includin