CT HB06467

Expands the Connecticut Housing Finance Authority's HERO (Homeowner's Equity Recovery Opportunity) loan program to include properties undergoing rehabilitation or renovation for future sale to owner-occupants, in addition to owner-occupants with existing mortgages.

Removes the "owner-occupied" requirement from mortgage definitions, allowing the authority to work with vacant or blighted properties and properties acquired through deed in lieu of foreclosure or short sale.

Authorizes the authority to make mortgage loans up to 30 years with terms determined by the authority, including interest rates, property taxes, insurance, and homeowner's insurance in monthly payments.

Establishes borrower eligibility requirements including demonstrated effort to meet financial obligations, stable income, legal title to the property, and (if applicable) documentation of cash flow during payment lapses.

Effective date is October 1, 2011, with implementation procedures to be adopted by the authority by July 1, 2008.