House Bill No. 6466
House Bill No. 6466
PUBLIC ACT NO. 97-156
AN ACT AUTHORIZING COMMUNITY HOUSING DEVELOPMENT
CORPORATIONS TO ESTABLISH REVOLVING LOAN FUNDS.
Be it enacted by the Senate and House of
Representatives in General Assembly convened:
Section 1. Section 8-218 of the general
statutes is repealed and the following is
substituted in lieu thereof:
(a) The state, acting by and in the discretion
of the Commissioner of Economic and Community
Development, may enter into a contract with a
community housing development corporation or an
eligible developer, as defined in section 8-39,
for state financial assistance in the form of (1)
a state grant-in-aid, loan, deferred loan, advance
or any combination thereof equal to the cost to
the community housing development corporation or
eligible developer, as approved by the
commissioner, of developing or rehabilitating low
and moderate income housing under section 8-217,
but limited to the following expenses: Appraisals,
title searches, legal fees, option agreements,
architectural, engineering and consultants' fees,
financing fees, closing costs and such other
expenses as may be financed by a mortgage loan
under any federal or state housing statute and
incurred by a community housing development
corporation or eligible developer prior to the
disbursement of mortgage loan funds on account of
such property; provided, to the extent such
expenses are recovered by the community housing
development corporation or the eligible developer
from the mortgage loan or from the proceeds of a
sale of such property, such expenses shall be
repaid to the state or to a fund established
pursuant to subsection (b) of this section; and
(2) an additional grant-in-aid, loan, deferred
loan or advance to such corporation or such
developer for the development of housing which in
the determination of the commissioner contains a
substantial number of dwelling units of three or
more bedrooms provided (A) that the mortgage loan
for such housing shall be eligible for insurance
by the United States Department of Housing and
Urban Development or for financing by the
Connecticut Housing Finance Authority or the
Farmers' Home Administration, and (B) that the
commissioner, after consultation with the United
States Department of Housing and Urban
Development, the Connecticut Housing Finance
Authority or the Farmers' Home Administration, as
the case may be, shall have determined that the
mortgage loan on such housing would not be
insurable in the absence of such additional
financial assistance; such grant-in-aid, loan,
deferred loan or advance shall be in lieu of any
assistance to said housing under section 8-216 and
shall be equal to the additional cost of
construction caused by the inclusion of such
dwelling units of three or more bedrooms in such
housing, but in no event shall such grant-in-aid,
loan, deferred loan or advance be greater than ten
per cent of the cost of construction of such
housing, as determined by the United States
Department of Housing and Urban Development, the
Connecticut Housing Finance Authority or the
Farmers' Home Administration. The commissioner may
require that any assistance in the form of a loan
or deferred loan be secured by a mortgage on such
housing. In the case of a deferred loan, the
contract shall require that payments on all or a
portion of the interest are due currently but that
payments on principal may be made at a later time.
(b) The state, acting by and in the discretion
of the commissioner, may enter into a contract
with a community housing development corporation
or an eligible developer for state financial
assistance in the form of a loan or deferred loan,
which loan or deferred loan shall be used to
establish and administer a REVOLVING loan fund for
the construction, rehabilitation and renovation of
existing or planned low and moderate income
housing, as approved by the commissioner. Such
fund may also consist of any state financial
assistance received from a contract between said
commissioner and such community housing
development corporation or eligible developer
entered into pursuant to subsection (a) of this
section, any proceeds recovered by such
corporation or developer from any mortgage loan or
from any loan or on account of such project or
from the sale of such project and funds from any
other source. Such fund shall be used by such
corporation or developer, as approved by the
commissioner, for the expenses of acquisition,
development, project selection, construction,
rehabilitation, renovation and oversight of
existing or planned low and moderate income
housing or to make loans for construction,
rehabilitation and renovation of such housing on
such terms and conditions as the commissioner may
determine. Recipients of loans under this
subsection for housing located in a distressed
municipality, as defined in section 32-9p, may
assign or prepay such loans with the approval of
the community housing development corporation. IN
THE CASE OF HOUSING DEVELOPED OR REHABILITATED BY
A COMMUNITY HOUSING DEVELOPMENT CORPORATION IN
DISTRESSED MUNICIPALITIES AS DEFINED IN SECTION
32-9p, THE POLICIES OF THE DEPARTMENT OF ECONOMIC
AND COMMUNITY DEVELOPMENT ADOPTED UNDER SECTION
8-37dd, AS AMENDED BY SECTION 2 OF THIS ACT, AND
THE REGULATIONS OF THE DEPARTMENT ADOPTED UNDER
THIS ACT SHALL APPLY ONLY TO THAT PORTION OF THE
ASSISTED PROPERTY WHICH CORRESPONDS TO THE
PROPORTION OF THE STATE ASSISTANCE TO THE
PROPERTY'S VALUE. THE NUMBER OF INCOME-LIMITED
HOUSING UNITS SHALL BE DETERMINED BY MULTIPLYING
THE AMOUNT OF THE HOUSING ASSISTANCE BY THE TOTAL
NUMBER OF HOUSING UNITS IN THE ASSISTED HOUSING
AND DIVIDING THE PRODUCT BY THE FAIR MARKET VALUE
OF THE PROPERTY. THE RESULT SHALL BE ROUNDED TO
THE LOWER WHOLE NUMBER. NOTWITHSTANDING THE
PROVISIONS OF ANY STATUTE TO THE CONTRARY OR ANY
REGULATION ADOPTED UNDER THIS SECTION OR SECTION
8-37dd, AS AMENDED BY SECTION 2 OF THIS ACT, OR
ANY OTHER STATUTE OR REGULATION, LIMITING THE
INCOME OF OCCUPANTS OF HOUSING ASSISTED UNDER THIS
SECTION AND NOT LOCATED IN A DISTRESSED
MUNICIPALITY, THE INCOME OF OCCUPANTS OF UNITS
ASSISTED UNDER THIS SECTION AND LOCATED IN
DISTRESSED MUNICIPALITIES MAY BE TWO HUNDRED FIFTY
PER CENT OR LESS OF THE AREA MEDIAN INCOME,
ADJUSTED FOR FAMILY SIZE, AS DETERMINED FROM TIME
TO TIME BY THE UNITED STATES DEPARTMENT OF HOUSING
AND URBAN DEVELOPMENT.
(c) The state, acting by and in the discretion
of the commissioner, may enter into a contract
with a community housing development corporation
for state financial assistance within available
appropriations in the form of a grant-in-aid which
shall be used by such COMMUNITY HOUSING
DEVELOPMENT corporation to provide grants, OR TO
ESTABLISH A REVOLVING LOAN FUND TO PROVIDE loans
or deferred loans for the purpose of making
structural or interior or exterior modifications
to any dwelling which may be necessary to make
such dwelling accessible to and usable by persons
having physical or mental disabilities. Such
corporation may provide such grants, loans or
deferred loans to (1) any owner of a single-family
or multifamily dwelling or (2) any tenant who
furnishes satisfactory evidence that the owner of
the dwelling in which the tenant resides has
approved the intended structural or interior or
exterior modifications. Any such loan or deferred
loan may be prepaid at any time, without penalty,
and the commissioner shall release the lien on the
property. IN THE CASE OF HOUSING DEVELOPED OR
REHABILITATED BY A COMMUNITY HOUSING DEVELOPMENT
CORPORATION IN DISTRESSED MUNICIPALITIES AS
DEFINED IN SECTION 32-9p, THE POLICIES OF THE
DEPARTMENT OF ECONOMIC AND COMMUNITY DEVELOPMENT
ADOPTED UNDER SECTION 8-37dd, AS AMENDED BY
SECTION 2 OF THIS ACT, AND ANY REGULATION OF THE
DEPARTMENT ADOPTED UNDER THIS SECTION, SHALL APPLY
ONLY TO THAT PORTION OF THE ASSISTED PROPERTY
WHICH CORRESPONDS TO THE PROPORTION OF THE STATE
ASSISTANCE TO THE PROPERTY'S VALUE. THE NUMBER OF
INCOME-LIMITED HOUSING UNITS SHALL BE DETERMINED
BY MULTIPLYING THE AMOUNT OF THE HOUSING
ASSISTANCE BY THE TOTAL NUMBER OF HOUSING UNITS IN
THE ASSISTED HOUSING AND DIVIDING THE PRODUCT BY
THE FAIR MARKET VALUE OF THE PROPERTY. THE RESULT
SHALL BE ROUNDED TO THE LOWER WHOLE NUMBER.
NOTWITHSTANDING THE PROVISIONS OF ANY STATUTE TO
THE CONTRARY OR ANY REGULATION ADOPTED UNDER THIS
SECTION LIMITING THE INCOME OF OCCUPANTS OF
HOUSING ASSISTED UNDER THIS SECTION AND NOT
LOCATED IN A DISTRESSED MUNICIPALITY, THE INCOME
OF OCCUPANTS OF UNITS ASSISTED UNDER THIS SECTION
AND LOCATED IN DISTRESSED MUNICIPALITIES MAY BE
TWO HUNDRED FIFTY PER CENT OR LESS OF THE AREA
MEDIAN INCOME, ADJUSTED FOR FAMILY SIZE, AS
DETERMINED FROM TIME TO TIME BY THE UNITED STATES
DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT.
(d) The Commissioner of Economic and Community
Development shall enter into a contract with a
COMMUNITY housing development corporation for
state financial assistance in the form of a
grant-in-aid which shall be used by such COMMUNITY
HOUSING DEVELOPMENT corporation to provide grants
for the purpose of conversion of adaptable living
units into units accessible to persons with
disabilities and for reconversion of such units to
adaptable living units. Eligible applicants shall
include any tenant or owner of a unit in a complex
or building subject to the provisions of
subsections (c) and (d) of section 29-273.
(e) The Commissioner of Economic and Community
Development shall enter into a contract with a
COMMUNITY housing development corporation for
state financial assistance in the form of a
grant-in-aid which shall be used by such COMMUNITY
housing development corporation to provide grants,
loans, deferred loans, loan guarantees, lines of
credit, or any combination thereof, to eligible
developers for activities that build, expand and
enhance capacity, including, but not limited to,
development of marketing or neighborhood strategic
plans, professional staff training, technical
assistance, predevelopment expenses as provided in
subsection (a) of this section and other
activities pursuant to section 8-217.
(f) The Commissioner of Economic and Community
Development shall adopt regulations, in accordance
with chapter 54, to administer the programs
established under subsections (c) and (d) of this
section. Such regulations shall establish maximum
income levels for tenants and homeowners and
provide for adjustment of income for family size
and medical expenses and may set maximum loan
amounts for loans made under subsection (c) that
are not secured and for grants made under
subsection (d).
(g) On and after the effective date of
regulations adopted under section 8-437, the
Commissioner of Economic and Community Development
shall not accept any application for state
financial assistance pursuant to this section
except (1) an application by a community housing
development corporation to establish or administer
a loan fund under subsection (b) or (2) an
application for a project or development not
qualifying for financial assistance pursuant to
section 8-433.
Sec. 2. Section 8-37dd of the general statutes
is repealed and the following is substituted in
lieu thereof:
[(a)] Not more than six months after July 1,
1990, each housing agency shall adopt written
policies concerning the extent to which housing
assisted by such agency shall be retained on a
long-term basis for members of the income group
for which the housing was developed.
[(b) In the case of housing developed or
rehabilitated by community housing development
corporations in distressed municipalities as
defined in section 32-9p, the provisions of
subsection (a) of this section shall apply only to
that portion of the assisted property which
corresponds to the proportion of state assistance
to the property's value. The number of assisted
housing units retained shall be determined by
multiplying the amount of the housing assistance
by the total number of housing units in the
assisted housing and dividing the product by the
fair market value of the property. The result
shall be rounded to the nearest whole number. The
income of occupants of assisted units shall not
exceed one hundred fifty per cent of the area
median income, adjusted for family size, as
determined from time to time by the United States
Department of Housing and Urban Development.]
Sec. 3. This act shall take effect July 1,
1997.
Approved June 24, 1997