CT HB05969

Creates the Collapsing Foundations Low-Interest Loan Program administered by the Connecticut Housing Finance Authority, effective October 1, 2019.

Provides supplemental loans up to $75,000 at no more than 1% annual interest to residential property owners who have exhausted maximum assistance from the captive insurance company for repairing or replacing foundations deteriorated by pyrrhotite.

Loans have no prepayment penalties and are serviced by the authority or its agents, with eligibility requirements and underwriting standards established by the authority.

Limits total loan issuance to $25 million per calendar year and requires applicants to document they have received maximum captive insurance assistance and need additional funding.

Requires the authority to maintain program records and report annually to the joint standing committees of the General Assembly on banking and housing beginning January 1, 2021.