CT SB00298

Establishes the Urban Homeownership Loan Fund to be administered by the Connecticut Housing Finance Authority, effective October 1, 2022.

Authorizes the authority to provide financial assistance to local community development financial institutions to establish revolving funds for home loans in communities with federally-designated qualified census tracts.

Permits the authority to match non-state funds committed to local revolving funds for a five-year period beginning October 1, 2022.

Allows state-contributed funds to be used for forgivable loans covering redevelopment costs exceeding fair market value, with properties required to remain owner-occupied for five years.

Imposes one-time penalties ranging from 100% to 20% of the forgiven loan amount (declining by year) if the owner-occupancy restriction is violated during the five-year period.