CHAPTER 138k
CONSOLIDATED HOUSING CONSTRUCTION, ACQUISITION
AND RELATED REHABILITATION PROGRAM

Table of Contents

Sec. 8-430. Definitions.
Sec. 8-431. Provision of financial assistance to eligible developers.
Sec. 8-432. Eligible costs.
Sec. 8-433. Contracts for financial assistance.
Sec. 8-434. Inclusion in housing developments of units for very low, low, and moderate income families and market-rate housing units.
Sec. 8-435. Review of site and budget of housing developments. Notice to municipalities of proposed housing developments. Administrative oversight charge. Inspection of reports, books and records. False statements.
Sec. 8-436. Terms and conditions of financial assistance. Transfer of housing development to eligible developer.
Sec. 8-437. Regulations.
Sec. 8-438. Report to select committee on housing.

      Sec. 8-430. Definitions. As used in sections 8-430 to 8-438, inclusive:

      (1) "Affordable housing" means affordable housing as defined in section 8-39a.

      (2) "Annual household income" means the total household income of all members of a household, from whatever source derived, except that the commissioner, in accordance with regulations adopted pursuant to section 8-437, may exclude from income reasonable allowances for dependents, medical expenses, income not received regularly and other items.

      (3) "Assisted housing" means housing for which eligible households pay thirty per cent or less of their annual household income or a base rent, whichever is greater.

      (4) "Base rent" means the minimum rent or carrying charge determined by the commissioner to be necessary for the operation and maintenance of a housing development, excluding rent-skewed units.

      (5) "Bonds" means any bonds, notes, interim certificates, debentures or other obligations issued by the state to provide funds for financial assistance pursuant to section 8-433.

      (6) "Carrying charge" means the sum of all amounts regularly or periodically paid by one or more residents for or with respect to the occupancy of an ownership unit, excluding any security deposit, initial membership fee or down payment paid for or with respect to the occupancy of an ownership unit.

      (7) "Carrying charge restrictions" means any terms and conditions, imposed by the commissioner with respect to ownership units in housing developments that receive financial assistance pursuant to section 8-433, to enforce compliance with the programmatic intent of sections 8-430 to 8-438, inclusive, including, without limitation, terms and conditions governing amounts to be paid as a carrying charge, the annual household income of eligible households and the types and mix of ownership units to be provided, but excluding any terms and conditions relating to income for continuing occupancy in limited equity cooperative units.

      (8) "Commissioner" means the Commissioner of Economic and Community Development.

      (9) "Community facilities" means facilities determined by the commissioner to be necessary, convenient, desirable or appurtenant to a housing development, including, without limitation, administrative, health, recreational, educational, commercial and child-care facilities.

      (10) "Congregate housing" means a residential environment for the frail elderly involving independent living assisted by congregate meals, housekeeping and personal services and may include housing integrated with other forms of housing.

      (11) "Deferred loan" means a loan on which interest or a portion thereof is not payable currently, or a loan on which principal or a portion thereof is not amortized currently, or both.

      (12) "Department" means the Department of Economic and Community Development.

      (13) "Developer's fee" means the sum, if any, to be paid by the commissioner to an eligible developer, as determined by the commissioner, in connection with the construction, acquisition or related rehabilitation of a housing development that receives financial assistance pursuant to section 8-433, which may include, as applicable, a fee for the administration of a program of financial assistance to eligible developers as provided in subsection (b) of section 8-433 or for performance under a contract pursuant to subsection (c) of section 8-433.

      (14) "Disabilities" means those conditions described in subsections (a) and (b) of section 1-1f and may also include mental retardation as defined in section 1-1g and mental illness as described in the definition of "mentally ill person" in section 17a-495.

      (15) "Elderly" means persons sixty-two years of age or older.

      (16) "Eligible costs" means those costs described in section 8-432 for which the commissioner may provide financial assistance to eligible developers.

      (17) "Eligible developer" means any of the following as approved by the commissioner: (A) A nonprofit entity; (B) a community housing development corporation as defined in section 8-217; (C) any business corporation incorporated pursuant to chapter 601 or any predecessor statutes thereto or authorized to do business pursuant to chapter 601 having as one of its purposes the construction, acquisition or related rehabilitation of affordable or assisted housing, and having a certificate or articles of incorporation approved by the commissioner in accordance with regulations adopted pursuant to section 8-437; (D) any partnership, limited partnership, joint venture, sole proprietorship, trust or association having as one of its purposes the construction, acquisition or related rehabilitation of affordable or assisted housing, and having basic documents of organization approved by the commissioner in accordance with regulations adopted pursuant to section 8-437; (E) a family or person approved by the commissioner as qualified to construct, acquire or rehabilitate affordable or assisted housing with financial assistance provided pursuant to the provisions of sections 8-430 to 8-438, inclusive; or (F) any combination thereof.

      (18) "Eligible household" means a household consisting of one or more persons including, without limitation, the elderly, whose annual household income qualifies as very low income, low income, or moderate income.

      (19) "Emergency shelter" means housing determined by the commissioner to constitute temporary housing for persons or households without overnight shelter or sufficient available resources to secure such shelter, as determined by the commissioner.

      (20) "Financial assistance" means any financial assistance the commissioner may provide to eligible developers pursuant to section 8-433.

      (21) "Frail elderly" means elderly persons who have temporary or periodic difficulties with one or more essential activities of daily living, as determined by the commissioner.

      (22) "Funding source" means the source of funding for financial assistance pursuant to section 8-433 and includes, without limitation, proceeds from the sale of the state's bonds, funds provided from the state's General Fund and by the federal government and such other funding sources available for financial assistance pursuant to section 8-433.

      (23) "Guarantee" means a promise, approved by the commissioner and the State Treasurer, to pay all or any portion of a specific obligation of an eligible developer for eligible costs of an assisted housing development if the eligible developer defaults on the payment of such obligation, for which the state has provided for adequate reserves, as determined by the commissioner and the State Treasurer in accordance with regulations adopted pursuant to section 8-437.

      (24) "Habitable" means decent and safe housing that meets all applicable fire, housing, health and building code standards.

      (25) "Housing authority" means any of the public corporations created by section 8-40 and the Connecticut Housing Authority when exercising the rights, powers or duties or subject to the limitations of housing authorities pursuant to chapter 129.

      (26) "Housing development" means any work or undertaking to provide decent, safe, sanitary, habitable, affordable or assisted housing that contributes to the goal of providing housing to the full range of eligible households; including, without limitation, the creation, acquisition or improvement of buildings and other improvements to real property, land, interests in land, leasehold interests, fixtures, equipment and facilities, and other real or personal property necessary, convenient, desirable or appurtenant to the foregoing, including, without limitation, streets, sewers, water and other utility service, parking, parks, site preparation, landscaping, community facilities and facilities to dispatch related services, or any combination thereof.

      (27) "Housing partnership" means any partnership, limited partnership, joint venture, trust or association consisting of (A) one or more nonprofit entities, and (B) (i) one or more business corporations incorporated pursuant to chapter 601 or any predecessor statutes thereto or authorized to do business pursuant to chapter 601 having as a purpose the construction, acquisition or related rehabilitation of affordable or assisted housing, and having a certificate or articles of incorporation approved by the commissioner in accordance with regulations adopted pursuant to section 8-437, (ii) one or more for-profit partnerships, limited partnerships, joint ventures, sole proprietorships, trusts or associations having as a purpose the construction, acquisition or related rehabilitation of affordable or assisted housing, and having basic documents of organization approved by the commissioner in accordance with regulations adopted pursuant to section 8-437, or (iii) any combination of the entities specified in subparagraphs (i) and (ii) of this subdivision.

      (28) "Interest subsidy" means state financial assistance that reduces the cost of interest on financing obtained from a quasi-public agency defined in section 1-120 or from a source other than the state with respect to eligible costs of an affordable or assisted housing development.

      (29) "Limited equity cooperative" shall have the meaning assigned in section 47-242.

      (30) "Loan" means an interest-free or interest-bearing obligation to repay principal.

      (31) "Low income" means annual household income from fifty-one up to and including eighty per cent of the area median, as determined by the commissioner.

      (32) "Market-rate housing" means housing that rents or sells at prices that are competitive with prices generally available in the private market, as determined by the commissioner.

      (33) "Moderate income" means annual household income from eighty-one up to and including one hundred per cent of the area median, as determined by the commissioner.

      (34) "Municipal developer" shall have the meaning assigned in section 8-39.

      (35) "Municipality" means any town, city or borough.

      (36) "Mutual housing" means housing provided by an eligible developer, owned and managed by a nonprofit mutual housing association or by an entity controlled by a nonprofit mutual housing association, in which residents (A) participate in ongoing operation and management; (B) have the right to continue residing in such housing so long as they comply with the terms of their respective occupancy agreement; and (C) have an ownership interest in such occupancy agreement, conditional upon compliance with its terms, but do not possess an equity interest in such housing.

      (37) "Nonprofit entity" means a housing authority; a nonprofit corporation incorporated or authorized to do business pursuant to chapter 602 or any predecessor statutes thereto, having as one of its purposes the construction, acquisition or related rehabilitation of affordable or assisted housing and having a certificate or articles of incorporation approved by the commissioner in accordance with regulations adopted pursuant to section 8-437; a quasi-public agency, as defined in section 1-120; a municipal developer; or a municipality or agency of a municipality.

      (38) "Ownership units" means units owned by one or more residents in fee simple, units in limited equity cooperatives and units in other residential cooperatives in which one or more residents have a leasehold estate, including renewal options, of at least twenty years, excluding quasi-ownership units.

      (39) "Participation interest" means any interest in a housing development that entitles the state to a percentage of cash flow and residual value as determined by the commissioner, whether such interest constitutes a debt or equity interest. Such percentage in the case of either cash flow or residual value may be zero.

      (40) "Programmatic intent" means the general intentions and purposes of sections 8-430 to 8-438, inclusive.

      (41) "Property tax or assessment benefits" means any abatement, deferral, waiver or forgiveness of any property tax, any benefit assessment, any sewer use charge or any similar tax, assessment or charge with respect to any affordable or assisted housing development under any provision of the general statutes.

      (42) "Quasi-ownership units" means mutual housing units and other units determined by the commissioner to possess important attributes of ownership units without qualifying as ownership units.

      (43) "Rehabilitation" means renovation or reconstruction of an existing structural improvement to real property, including substantial rehabilitation.

      (44) "Related services" means services determined by the commissioner to be necessary, convenient, desirable or appurtenant to a housing development.

      (45) "Rent" means charges, excluding security deposits, down payments and membership fees, paid for occupancy of rental units or quasi-ownership units in housing developments that receive financial assistance pursuant to section 8-433.

      (46) "Rental restrictions" means any terms and conditions imposed by the commissioner with respect to rental units or quasi-ownership units in housing developments that receive financial assistance pursuant to section 8-433 to enforce compliance with the programmatic intent of sections 8-430 to 8-438, inclusive, including, without limitation, terms and conditions governing amounts to be charged as rent, the annual household income of eligible households, and the types and mix of rental units and quasi-ownership units.

      (47) "Rental supplement" means a grant-in-aid, made in accordance with regulations adopted pursuant to section 8-437, with respect to rental units or quasi-ownership units in a housing development that receives financial assistance pursuant to section 8-433, to make such units affordable to eligible households of very low income.

      (48) "Rental units" means units other than ownership units and quasi-ownership units, and includes, without limitation, housing for individuals and households, elderly housing, congregate housing, emergency shelters, transitional housing, and single-room occupancy housing, as determined by the commissioner.

      (49) "Rent-skewed unit" means any unit for which less than base rent is charged, as approved by the commissioner, in order to make such unit affordable to eligible households of very low income.

      (50) "Resale and repayment restrictions" means any terms and conditions imposed by the commissioner with respect to housing developments that receive financial assistance pursuant to section 8-433 governing the circumstances under which such housing developments or units in such housing developments may be sold, transferred, conveyed or refinanced or loans with respect to such housing developments may be prepaid.

      (51) "Resident" means a person or household residing in a housing development.

      (52) "Service supplement" means a grant-in-aid, made in accordance with regulations adopted pursuant to section 8-437, with respect to a housing development that receives financial assistance pursuant to section 8-433, to provide operating subsidy, as applicable, for community facilities and related services and for the operating costs of congregate housing.

      (53) "Shelter rent" means that portion of the rent or carrying charge paid for occupancy of the unit excluding utility charges.

      (54) "Start-up costs" means costs, as approved by the commissioner, incurred in opening a housing development, including, without limitation, costs of insurance, office equipment, furnishing of common space, maintenance equipment, advertising and marketing and necessary initial operating expenses.

      (55) "State" means the state of Connecticut.

      (56) "Subsidy recapture provision" means any mechanism for the state to recapture its net costs of providing financial assistance pursuant to sections 8-430 to 8-438, inclusive, or any portion thereof, as estimated by the commissioner. The commissioner may provide for the use of any reasonable method to estimate such costs.

      (57) "Substantial rehabilitation" means rehabilitation of an existing improvement to real property the total costs of which, as estimated by the commissioner, is equal to or greater than fifty per cent of the fair market value of the improvements after rehabilitation, not including the value of the land. The commissioner may provide for the use of any reasonable method to estimate such costs and values.

      (58) "Transitional housing" means housing for very low or low income persons or households, intended to be occupied for a period of not less than six but not more than twenty-four months, and includes, without limitation, related services and community facilities.

      (59) "Very low income" means annual household income from zero up to and including fifty per cent of the area median, as determined by the commissioner.

      (P.A. 93-309, S. 1, 29; P.A. 94-156, S. 2, 5; P.A. 95-250, S. 1; P.A. 96-211, S. 1, 5, 6; 96-256, S. 181, 209; 96-271, S. 154, 155, 254.)

      History: P.A. 93-309 effective July 1, 1993; P.A. 94-156 deleted the definition of "administrative oversight charge" and renumbered the remaining Subdivs., effective July 1, 1994; P.A. 95-250 and P.A. 96-211 replaced Commissioner and Department of Housing with Commissioner and Department of Economic and Community Development; P.A. 96-256 amended the definition of "nonprofit entity" in Subdiv. (37) by replacing reference to "chapter 600" with "chapter 602 or any predecessor statutes thereto", effective January 1, 1997; P.A. 96-271 amended the definitions of "eligible developer" and "home partnership" in Subdivs. (17) and (27), respectively, by replacing references to business corporations "incorporated or authorized to do business pursuant to chapter 599" with "incorporated pursuant to chapter 601 or any predecessor statutes thereto or authorized to do business pursuant to chapter 601", effective January 1, 1997.

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      Sec. 8-431. Provision of financial assistance to eligible developers. The commissioner may provide the financial assistance authorized pursuant to section 8-433 to eligible developers. The commissioner shall give preference to nonprofit entities and housing partnerships in selecting eligible developers to receive financial assistance pursuant to section 8-433.

      (P.A. 93-309, S. 2, 29.)

      History: P.A. 93-309 effective July 1, 1993.

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      Sec. 8-432. Eligible costs. (a) The commissioner may provide the financial assistance authorized pursuant to section 8-433 for eligible costs. Upon determination by the commissioner to be necessary and reasonable and in accordance with regulations adopted under section 8-437, eligible costs may include any costs and expenses incurred in construction, acquisition or rehabilitation, or any combination thereof, to create or preserve assisted housing developments, which may include, in accordance with the provisions of section 8-433, market-rate housing units, reimbursement or refinancing of such costs in accordance with regulations adopted pursuant to section 8-437, a developer's fee, reasonable and necessary predevelopment and start-up costs and the funding of reasonable working capital reserves with respect to housing developments that receive financial assistance pursuant to section 8-433. In the case of resident controlled housing, eligible costs may also include the costs of development of resident organizations, including resident training and leadership development.

      (b) Notwithstanding the provisions of sections 8-430 to 8-438, inclusive, eligible costs shall not include (1) acquisition of unimproved land without the construction or rehabilitation of structures on the land acquired or (2) rehabilitation, except substantial rehabilitation, of structures not constructed or acquired with financial assistance provided pursuant to section 8-433.

      (P.A. 93-309, S. 3, 29; P.A. 95-250, S. 25, 42; 95-309, S. 11, 12.)

      History: P.A. 93-309 effective July 1, 1993; P.A. 95-250 made a technical change in Subsec. (a); P.A. 95-309 changed effective date of P.A. 95-250 but did not affect this section.

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      Sec. 8-433. Contracts for financial assistance. (a) In the case of financial assistance provided from the proceeds of the state's bonds upon preliminary approval by the State Bond Commission pursuant to the provisions of section 3-20, or, in the case of financial assistance provided from a funding source other than the state's bonds upon the approval by the Governor of an allotment for such purpose, the state, acting by and in the discretion of the commissioner, may enter into a contract with an eligible developer, for or with respect to eligible costs, for state financial assistance in the form of grants, loans, deferred loans, guarantees, interest subsidies or combinations thereof. Within available appropriations, and in accordance with regulations adopted pursuant to section 8-437, the state, acting by and in the discretion of the commissioner, may enter into a contract to provide financial assistance in the form of rental supplements and service supplements for any housing development that receives financial assistance pursuant to this section.

      (b) In the case of financial assistance provided from the proceeds of the state's bonds, upon preliminary approval by the State Bond Commission pursuant to the provisions of section 3-20, or, in the case of financial assistance provided from a funding source other than the state's bonds, upon the approval by the Governor of an allotment for such purpose, the state, acting by and in the discretion of the commissioner, may enter into a contract with an eligible developer, for or with respect to eligible costs, for state financial assistance in the form of grants, loans, deferred loans, guarantees, interest subsidies or combinations thereof, to be used by such eligible developer to administer a program of financial assistance to eligible developers. Such program of financial assistance may include grants, loans, deferred loans, guarantees, interest subsidies, or combinations thereof, as determined by the commissioner.

      (c) The commissioner may enter into a contract with an eligible developer to administer financial assistance provided pursuant to subsection (a) of this section.

      (d) Notwithstanding the provisions of sections 8-430 to 8-438, inclusive, the commissioner may approve the inclusion of market-rate housing units in any housing development that receives financial assistance pursuant to this section, except that the commissioner may provide financial assistance with respect to the estimated cost of any market-rate housing units approved for inclusion in such a housing development, other than market-rate units used to generate recurring income to subsidize units for households of very low income, only upon determining that the terms and conditions established pursuant to section 8-436 that apply to such financial assistance for market-rate units will reimburse the state for the costs to the state of such financial assistance, as estimated by the commissioner in accordance with regulations adopted pursuant to section 8-437.

      (e) In the case of moneys to be employed from the proceeds of the state's bonds, upon preliminary approval by the State Bond Commission pursuant to the provisions of section 3-20, or in the case of moneys to be employed from a funding source other than the state's bonds, upon the approval by the Governor of an allotment for such purpose, the commissioner may enter into a contract to purchase a mortgage or other lien on a housing development that receives financial assistance pursuant to this section; provided the commissioner determines such purchase to be in the best interest of the state and consistent with the state's programmatic intent.

      (P.A. 93-309, S. 4, 29.)

      History: P.A. 93-309 effective July 1, 1993.

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      Sec. 8-434. Inclusion in housing developments of units for very low, low, and moderate income families and market-rate housing units. Housing developments that receive financial assistance pursuant to section 8-433, to the extent determined by the commissioner to be feasible, in the best interest of the state and consistent with the state's programmatic intent, may contain a minimum number of units for very low, low, and moderate income families, including those at or below twenty-five per cent of the area median income. Upon approval of the commissioner pursuant to subsection (d) of section 8-433, such housing developments may include market-rate housing units. Housing developments that receive financial assistance pursuant to said section 8-433 may include any combination of rental units, quasi-ownership units and ownership units, as approved by the commissioner.

      (P.A. 93-309, S. 5, 29.)

      History: P.A. 93-309 effective July 1, 1993.

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      Sec. 8-435. Review of site and budget of housing developments. Notice to municipalities of proposed housing developments. Administrative oversight charge. Inspection of reports, books and records. False statements. (a) In accordance with regulations adopted pursuant to section 8-437, the commissioner shall review and approve the site, the estimated total development budget, including the nature and amount of financial assistance to be provided by the state, and the proposed initial operating budget of each housing development prior to providing financial assistance pursuant to section 8-433. The commissioner may review and approve any additional factors determined by the commissioner to be necessary or appropriate to the protection of the state's programmatic intent and financial interests.

      (b) Prior to providing financial assistance for any proposed housing development pursuant to section 8-433, the commissioner shall provide written notice describing the proposed housing development to the chief executive officer of the municipality in which the proposed housing development is to be located.

      (c) At least biennially, after financial assistance is provided with respect to a housing development pursuant to section 8-433, the commissioner shall review and approve the proposed operating budget, income limitations applicable to eligible households, other standards for resident eligibility, methods of resident selection, standards for continued resident occupancy, procedures for certifying annual household income, administrative and management procedures and rents or carrying charges, and may review and approve any additional factors determined by the commissioner to be necessary or appropriate to the protection of the state's programmatic intent and financial interests. Limited equity cooperatives receiving financial assistance pursuant to section 8-433 shall be self-managed except that the commissioner may require a limited equity cooperative to engage the services of a management company upon determination that such action is necessary to achieve the state's programmatic intent under sections 8-430 to 8-438, inclusive. The commissioner may establish terms and conditions pursuant to section 8-436 allowing residents to continue occupancy of units in housing developments that receive financial assistance pursuant to section 8-434 regardless of an increase in the annual household income of such residents. Housing developments that receive financial assistance pursuant to section 8-433 shall be managed so as to enable rents and carrying charges to be set or established at the lowest level consistent with the provision of habitable units and sound property management, taking into consideration the state's programmatic intent as determined by the commissioner. In accordance with regulations adopted pursuant to section 8-437 the operating budget of each housing development that receives financial assistance pursuant to section 8-433 shall identify income, from all available sources, sufficient to provide, as applicable, funds for: Debt service; administrative and management costs and expenses of the entity or entities managing the housing development; other operating costs and expenses; contributions towards reserves for repairs, maintenance, replacement, and vacancy and collection losses; and any other items determined by the commissioner to be necessary or appropriate to the protection of the state's programmatic intent and financial interest.

      (d) The commissioner may request, inspect and audit reports, books and records with respect to housing developments that receive financial assistance pursuant to section 8-433, including, without limitation, resident information and financial and operating statements, and shall have the power to investigate the accuracy and completeness of such reports, books and records.

      (e) The intentional submission of false information with respect to any housing development that receives financial assistance pursuant to section 8-433 shall subject the person making the submission to the penalty for making a false statement under section 53a-157b.

      (P.A. 93-309, S. 6, 29; May 25 Sp. Sess. P.A. 94-1, S. 13, 130; P.A. 96-180, S. 13, 166; 96-189, S. 2, 3.)

      History: P.A. 93-309 effective July 1, 1993; May 25 Sp. Sess. P.A. 94-1 amended Subsec. (c) by making technical changes, effective July 1, 1994; P.A. 96-180 amended Subsec. (f) (relettered to "(e)" by P.A. 96-189) by replacing Sec. 53a-157 with Sec. 53a-157b, effective June 3, 1996; P.A. 96-189 deleted former Subsec. (d) re administrative oversight charge and relettered remaining Subsecs. accordingly, effective July 1, 1996.

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      Sec. 8-436. Terms and conditions of financial assistance. Transfer of housing development to eligible developer. (a) Financial assistance provided pursuant to section 8-433 shall be upon any such terms and conditions not inconsistent with the provisions of sections 8-430 to 8-438, inclusive, as the commissioner shall establish as prudent and necessary to protect the state's programmatic intent and financial interests. Such terms and conditions may include, separately or in combination, without limitation: The requirement of funds from other sources, including, without limitation, financing obtained from the Connecticut Housing Finance Authority or other quasi-public agencies as defined in section 1-120; participation interests; subsidy recapture provisions; and resale and prepayment, carrying charge and rental restrictions, but shall not include restrictions upon the annual household income of residents of limited equity cooperative units after initial occupancy. The commissioner shall not require limited equity cooperatives to establish (1) income tests for eligibility for continued occupancy or (2) carrying charges based on the income of residing cooperative members. The commissioner may require limited equity cooperatives to submit reports listing anonymously and certifying the income of its residents. The commissioner may establish terms and conditions allowing residents occupying units in developments that receive financial assistance pursuant to section 8-433 to continue to occupy such units regardless of an increase in such residents' annual household income. In establishing such terms and conditions the commissioner shall consider the availability of financing obtained from the Connecticut Housing Finance Authority or other quasi-public agencies defined in section 1-120. Such terms and conditions and compliance with such terms and conditions may be documented and secured as the commissioner shall determine. The commissioner may permit the priority of any lien or encumbrance taken by the department in connection with any such term or condition to be other than a lien or encumbrance of first priority. Any request for approval by the State Bond Commission for financial assistance pursuant to section 8-433, or any request for approval by the Governor of an allotment for financial assistance pursuant to section 8-433, as the case may be, shall include a description of the terms and conditions and manner of documenting and securing such terms and conditions proposed by the commissioner with respect to such financial assistance in accordance with regulations adopted pursuant to section 8-437, including, without limitation, the proposed duration of such terms and conditions. No term or condition provided for pursuant to this section, or interest, lien or encumbrance created by or securing such term or condition, shall be subject to any statutory or common-law rule against perpetuities or rule against unreasonable restraints on alienation.

      (b) Following initial approval by the State Bond Commission of financial assistance pursuant to section 8-433, or the initial approval by the Governor of an allotment for financial assistance pursuant to section 8-433, as the case may be, the commissioner may, in accordance with regulations adopted pursuant to section 8-437, waive, release or amend any term or condition imposed with respect to a housing development pursuant to this section and any lien or encumbrance taken by the department with respect to such term or condition, upon approval of the State Bond Commission, and upon a determination by the commissioner that all provisions of sections 8-430 to 8-438, inclusive, will continue to be met following such waiver, release or amendment, and that such waiver, release or amendment is in the best interest of the state and is consistent with the state's programmatic intent. If such waiver, release or amendment will result in units of a housing development ceasing to qualify as assisted housing, the commissioner may only grant or approve such waiver, release or amendment upon determining that: (1) Based on objective data, there is available in the area of the housing development for which such waiver, release or amendment is sought an adequate supply of habitable housing for the full range of very low, low and moderate income persons; or (2) the eligible developer requesting such waiver, release or amendment has agreed to replace the units ceasing to qualify as assisted housing with comparable units, as determined by the commissioner, and identified to the satisfaction of the commissioner a suitable available site and sources of financing other than state financial assistance for such comparable replacement units; or (3) the department (A) will recover sufficient funds from such waiver, release or amendment, whether through a participation interest, operation of a subsidy recapture provision, or otherwise, to provide financial assistance to an eligible developer covering the full cost of comparable replacement units, as determined by the commissioner, and (B) has identified such an eligible developer and a suitable available site for such comparable replacement units.

      (c) The commissioner may, in accordance with regulations adopted pursuant to section 8-437, approve the transfer of any housing development that receives financial assistance pursuant to section 8-433, or of any units in any such housing development, to one or more eligible developers upon approval of the State Bond Commission and upon a determination by the commissioner that all provisions of sections 8-430 to 8-438, inclusive, will continue to be met following such transfer, and that such transfer is in the state's best interest and is consistent with the state's programmatic intent. The commissioner may approve the conversion of units in a housing development that receives or has received financial assistance pursuant to section 8-433 from one type of unit eligible to receive such financial assistance to another type of unit so eligible upon approval of the State Bond Commission and upon a determination by the commissioner that all provisions to sections 8-430 to 8-438, inclusive, will continue to be met following such conversion, and that such conversion is in the state's best interest and is consistent with the state's programmatic intent.

      (P.A. 93-309, S. 7, 29; May 25 Sp. Sess. P.A. 94-1, S. 14, 130.)

      History: P.A. 93-309 effective July 1, 1993; May 25 Sp. Sess. P.A. 94-1 amended Subsec. (d) by making technical change, effective July 1, 1994.

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      Sec. 8-437. Regulations. The commissioner shall adopt regulations in accordance with the provisions of chapter 54, to carry out the purposes of sections 8-430 to 8-438, inclusive. Such regulations may describe and set forth such procedures and criteria as the commissioner determines to be necessary or appropriate to carry out the purposes of sections 8-430 to 8-438, inclusive, and shall:

      (1) Describe the procedures to be employed and factors to be considered by the commissioner in approving certificates or articles of incorporation or other basic documents of organization pursuant to sections 8-430 to 8-438, inclusive;

      (2) Describe the method of calculation and conditions for payment of any developer's fee provided pursuant to sections 8-430 to 8-438, inclusive, including, without limitation, the calculation and conditions for any incentive to be paid for housing developments containing units for eligible households of very low income;

      (3) Describe the method of calculation and conditions for use of any reasonable working capital reserves financed with financial assistance provided pursuant to section 8-433, and set forth the criteria to be applied by the commissioner in determining the need for such reserves;

      (4) Set forth the criteria to be applied in determining annual household income pursuant to sections 8-430 to 8-438, inclusive;

      (5) With respect to guarantees for which financial assistance pursuant to section 8-433 may be provided, (A) set forth the criteria to be applied by the commissioner and the State Treasurer in determining the terms and conditions of any such guarantee, and in determining the adequacy of reserves with respect to any such guarantee, and (B) describe the manner in which such reserves shall be maintained by or on behalf of the state;

      (6) Set forth the criteria to be applied by the commissioner in approving as eligible costs the reimbursement or refinancing of costs and expenses incurred by an eligible developer prior to receiving financial assistance pursuant to section 8-433;

      (7) Set forth the categories of reasonable and necessary costs and expenses incurred with respect to a housing development that constitute eligible costs;

      (8) Describe the method of calculation of any rental or service supplement to be financed with financial assistance pursuant to section 8-433, and set forth the criteria to be applied by the commissioner in determining the need for such rental or service supplement;

      (9) Describe the procedures to be employed and factors to be considered by the commissioner in estimating the cost to the state of financial assistance with respect to market-rate housing units included in a housing development pursuant to section 8-433;

      (10) Establish a procedure, consistent with the comprehensive housing affordability strategy, for the commissioner to solicit and competitively rate and rank proposals for financial assistance pursuant to section 8-433, and describe the procedures to be employed and factors to be considered by the commissioner in establishing objectives with respect to the allocation of financial assistance pursuant to section 8-433 in any fiscal year based upon: (A) The annual household income of eligible households to be served; (B) the types of units to receive such financial assistance; and (C) the approximate geographic location of all such units;

      (11) Describe (A) the procedures to be employed and factors to be considered by the commissioner in reviewing and approving the site, the estimated development budget and the proposed initial operating budget of each proposed housing development, and (B) the items to be addressed in such estimated total development budget and proposed initial operating budget, pursuant to section 8-435;

      (12) Describe the procedures to be employed and factors to be considered by the commissioner in reviewing and approving operating budgets, and the items to be addressed in such operating budgets, pursuant to section 8-435;

      (13) Set forth the specific aspects of the terms and conditions of proposed financial assistance and manner of documenting and securing such terms and conditions that must be described pursuant to section 8-436 in any request for approval by the State Bond Commission for financial assistance pursuant to section 8-433, or any request for approval by the Governor of an allotment for financial assistance pursuant to section 8-433, as the case may be;

      (14) Set forth the criteria to be applied by the commissioner in approving any requested waiver, release or amendment of any term or condition imposed with respect to a housing development pursuant to section 8-436, or any lien or encumbrance taken by the department with respect to such term or condition, including, without limitation, the objective data to be used under subdivision (1) of subsection (b) of section 8-436 to determine whether there is available in the area of the housing development for which such waiver, release or amendment is sought an adequate supply of habitable housing for the full range of very low, low and moderate income persons;

      (15) Set forth the criteria to be applied by the commissioner in approving any requested transfer of any housing development or unit in any housing development for which such approval is required pursuant to section 8-436; and

      (16) Provide guidelines for housing development models that may be eligible for financial assistance under section 8-433, such as, without limitation, limited equity cooperative, mutual housing or community housing development loan fund models, provided models not included in such guidelines shall not be construed to be ineligible for financial assistance under section 8-433 if otherwise eligible and models included shall not be construed to be eligible if they are not otherwise eligible.

      (P.A. 93-309, S. 8, 29; P.A. 94-156, S. 3, 5.)

      History: P.A. 93-309 effective July 1, 1993; P.A. 94-156 deleted Subdiv. (13) re administrative oversight charges and renumbered the remaining Subdivs. accordingly, effective July 1, 1994.

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      Sec. 8-438. Report to select committee on housing. On or before December 31, 1995, the Commissioner of Economic and Community Development shall submit a report to the select committee of the General Assembly having cognizance of matters relating to housing on the program established under sections 8-430 to 8-437, inclusive. Such report shall include a description of the housing developments approved, the annual household incomes of eligible households served and the effectiveness of the program and may make recommendations for such program.

      (P.A. 93-309, S. 9, 29; P.A. 95-250, S. 1; P.A. 96-211, S. 1, 5, 6.)

      History: P.A. 93-309 effective July 1, 1993; P.A. 95-250 and P.A. 96-211 replaced Commissioner and Department of Housing with Commissioner and Department of Economic and Community Development.

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