CT HB06992

Connecticut Housing Finance Authority will administer the "Homes for CT" loan program to help residential building owners and developers obtain construction financing through loan guarantees and subordinate loans from participating banks and credit unions with physical presence in the state

Program caps total guaranteed loans at $100 million, with the state's General Fund covering claims up to $10 million maximum; upon payment of a guarantee claim, the loan is assigned to the state for continued collection efforts

Loans must be secured by mortgage deed, may exceed typical loan-to-value ratios, and interest rates cannot exceed the Federal Home Loan Bank of Boston's New England Fund rate; completed homes must be sold only to buyers in CHFA homebuyer programs

Financial institutions must notify the authority within one business day of making a loan; by September 1, 2025, the Department of Banking and the authority must publish program information and participating lender lists on their websites

Authority may terminate loan guarantees if financial institutions misrepresent information or fail to comply with requirements; post-delinquency collection efforts before filing claims are limited to 90 days maximum