CT HB05209

Interest on shared appreciation agreements must be simple interest calculated on the lump sum payment at loan maturity, effective October 1, 2026

Agreements cannot require borrower occupancy, restrict refinancing, include prepayment penalties, contain confidentiality clauses, or charge borrowers for lender attorney fees

Lenders must provide 90 days advance written notice of required borrower actions, deliver payoff quotes within 3 business days at no cost, and give borrowers credit for property improvements

Borrowers must obtain HUD-certified homeownership counseling on loan costs and risks before consummation, and have a 3-business-day cancellation right after closing

If borrowers cannot repay at maturity without selling the property, lenders must offer a 30-year fixed-rate refinance at current market rates using Fannie Mae-Freddie Mac uniform instruments