CT HB07004

Expands the definition of "eligible borrower" to include owners or occupants of single-family or multifamily residential dwellings in condominiums or common interest communities, provided the association has a participation agreement with the captive insurance company.

Requires eligible borrowers to demonstrate to the financial institution that they or their association have a participation agreement with the captive insurance company for foundation repairs caused by pyrrhotite deterioration.

Sets loan limits at $75,000 for individual borrowers or $75,000 multiplied by the number of buildings referenced in the participation agreement for associations.

Specifies loan security options including mortgage deeds on residential buildings, encumbrances on association common elements, security interests in association income or unit owner assessments, or combinations thereof.

Caps loan interest rates at the Federal Home Loan Bank of Boston's applicable New England Fund rate as published on the date the rate is locked-in, with the term and amortization schedule matching the loan being made.