CT HB05765

Establishes the Federal Shutdown Affected Employees Loan Program administered by the Connecticut Housing Finance Authority to guarantee loans made by eligible banks and credit unions to federal employees affected by the December 22, 2018 shutdown who are Connecticut residents.

Loans capped at $5,000 or the affected employee's most recent monthly after-tax pay, whichever is less, with reduction for any unemployment benefits received; creditworthiness cannot be a factor in eligibility determination.

Loan terms include no repayment during a 90-day grace period after federal agency funding resumes, no interest charged before or during the grace period or for 180 days after, and repayment in 3-6 equal installments within 180 days of the grace period ending.

Allows affected employees up to three loans total and permits financial institutions to claim recovery of outstanding principal from the state after 180 days of collection efforts, with loans automatically assigned to the state upon payment.

Enables municipalities to establish optional tax deferment programs for affected employees on real property, personal property, motor vehicles, and water/sewer bills without charging interest during the deferment period; deferred amounts become due within 60 days after employee is no longer affected.