The Hartford Courant reports the move was requested by Democratic Mayor Luke Bronin. The council approved it Monday.
Some council members had resisted the plan, saying it would undermine the power of local government but they said it became unavoidable as the potential for bankruptcy loomed.
Hartford’s $611 million budget currently has a $45 million deficit.
The new Municipal Accountability Review Board was created to help cities like Hartford avoid insolvency. It provides various levels of monitoring and assistance depending on the severity of the city’s financial problems. Hartford plans to apply for Tier III oversight, the second highest level.