Substitute House Bill No. 6835
Substitute House Bill No. 6835
PUBLIC ACT NO. 97-307
AN ACT ESTABLISHING PILOT PROGRAMS FOR THE
REHABILITATION OF CERTAIN BUILDINGS AND HOUSING
PROJECTS AND CONCERNING COMMISSIONERS OF HOUSING
AUTHORITIES.
Be it enacted by the Senate and House of
Representatives in General Assembly convened:
Section 1. (NEW) (a) The Connecticut Housing
Finance Authority shall develop, in conjunction
with private lenders and the Federal National
Mortgage Association, a two-year pilot program to
guarantee loans by approved lenders for the
rehabilitation or refinancing of buildings with
five to twenty-five dwelling units. The authority
may fix a fee for the payment of any
administrative cost incurred under the provisions
of this act. Such fee may be computed as a
percentage of the principal of the mortgage
outstanding at the beginning of each mortgage
year, but shall not be more than one-quarter of
one per cent per year of such principal amount.
The amount of such fee need not be uniform for all
insured loans. Such fee shall be payable by
mortgagors or mortgagees in such manner as
prescribed by the authority. Such guarantees shall
insure the lender against loss not to exceed
twenty per cent of the principal due at the time
of default.
(b) The authority shall adopt written
procedures in accordance with the provisions of
section 1-121 of the general statutes for the
application and distribution of loans under this
act.
Sec. 2. (NEW) As used in this section, the
terms "housing authority", "moderate rental
housing project", "municipality" and "eligible
developer" shall have the same meanings as such
terms are defined in section 8-39 of the general
statutes. The Commissioner of Economic and
Community Development shall develop, within
available appropriations, a two-year pilot program
in not more than three municipalities in the state
to promote the rehabilitation and private
management of moderate rental housing projects
owned by any housing authority in any such
municipality. Notwithstanding any provision of the
general statutes or any regulation to the
contrary, upon the determination of said
commissioner that the availability of moderate
rental housing projects in any such municipality
would be enhanced, and that it is in the best
interests of the state, he may grant written
approval to the housing authority in such
municipality to enter into a contract with an
eligible developer. Such contract may provide for
a long-term lease with such eligible developer or
for the sale of not more than two existing
moderate rental housing projects within the
municipality in which said housing authority is
located, provided that such eligible developer
agrees to (1) substantially rehabilitate such
projects within a time period specified by the
commissioner and (2) maintain such projects as
moderate rental housing projects for fifteen years
or until any financial assistance provided by the
state or said housing authority to such eligible
developer has been repaid, whichever is longer.
Said housing authority, or said commissioner, upon
approval by the State Bond Commission, may provide
financial assistance to such eligible developer,
either directly or indirectly, in the form of
grants, loans, deferred loans, guarantees,
interest subsidies or any combination of such
financial assistance for substantial
rehabilitation of such housing projects, and said
commissioner may subordinate any mortgage
obligations of said housing authority issued in
favor of the state. Said commissioner may adopt
regulations in accordance with chapter 54 of the
general statutes to implement the provisions of
this section.
Sec. 3. Section 8-41 of the general statutes
is repealed and the following is substituted in
lieu thereof:
(a) When the governing body of a municipality
other than a town adopts a resolution as described
in section 8-40, it shall promptly notify the
chief executive officer of such adoption. Upon
receiving such notice, the chief executive officer
shall appoint five persons who are residents of
said municipality as commissioners of the
authority, except that where the authority
operates more than three thousand units the chief
executive officer may appoint two additional
persons who are residents of the municipality. If
the governing body of a town adopts such a
resolution, such body shall appoint five persons
who are residents of said town as commissioners of
the authority created for such town. The
commissioners who are first so appointed shall be
designated to serve for a term of either one, two,
three, four or five years, except that if the
authority has five members, the terms of not more
than one member shall expire in the same year.
Terms shall commence on the first day of the month
next succeeding the date of their appointment, and
annually thereafter a commissioner shall be
appointed to serve for five years except that any
vacancy which may occur because of a change of
residence by a commissioner, removal of a
commissioner, resignation or death shall be filled
for the unexpired portion of the term. If a
governing body increases the membership of the
authority on or after July 1, 1995, such governing
body shall, by resolution, provide for a term of
five years for each such additional member. The
term of the chairman shall be three years. At
least one of such commissioners of an authority
having five members, and at least two of such
commissioners of an authority having more than
five members, shall be a tenant or tenants who
live in housing owned or managed by such
authority, if any exists, provided that any such
tenant shall have resided in such housing for more
than one year, and provided further that no such
tenant shall have the authority to vote on any
matter concerning the establishment or revision of
the rents to be charged in any housing owned or
managed by such authority. If, on October 1, 1979,
a municipality has adopted a resolution as
described in section 8-40, but has no tenants
serving as commissioners, the chief executive
officer of a municipality other than a town or the
governing body of a town shall appoint a tenant
who meets the qualifications set out in this
section as a commissioner of such authority when
the next vacancy occurs. No commissioner of an
authority may hold any public office in the
municipality for which the authority is created. A
commissioner shall hold office until his successor
is appointed and has qualified. A certificate of
the appointment or reappointment of any
commissioner shall be filed with the clerk and
shall be conclusive evidence of the legal
appointment of such commissioner, after he has
taken an oath in the form prescribed in the first
paragraph of section 1-25. The powers of each
authority shall be vested in the commissioners
thereof. Three commissioners shall constitute a
quorum if the authority consists of five
commissioners. Four commissioners shall constitute
a quorum if the authority consists of more than
five commissioners. Action may be taken by the
authority upon a vote of not less than a majority
of the commissioners present, unless the bylaws of
the authority require a larger number. The chief
executive officer, or, in the case of an authority
for a town, the governing body of the town, shall
designate which of the commissioners shall be the
first chairman, but when the office of chairman of
the authority becomes vacant, the authority shall
select a chairman from among its commissioners. An
authority shall select from among its
commissioners a vice chairman, and it may employ a
secretary, who shall be executive director, and
technical experts and such other officers, agents
and employees, permanent and temporary, as it
requires, and shall determine their
qualifications, duties and compensation, provided,
in municipalities having a civil service law, all
appointments and promotions, except the employment
of the secretary, shall be based on examinations
given and lists prepared under such law, and,
except so far as may be inconsistent with the
terms of this chapter, such civil service law and
regulations adopted thereunder shall apply to such
housing authority and its personnel. For such
legal services as it requires, an authority may
employ its own counsel and legal staff. An
authority may delegate any of its powers and
duties to one or more of its agents or employees.
A commissioner, or any employee of the authority
who handles its funds, shall be required to
furnish an adequate bond. The commissioners shall
serve without compensation, but shall be entitled
to reimbursement for their actual and necessary
expenses incurred in the performance of their
official duties.
(b) Any tenant organization composed of
tenants residing within units owned or managed by
the appointing authority may indicate to such
authority its desire to be notified of any pending
appointment of any such commissioner. A reasonable
time before appointing any such commissioner, the
appointing authority shall notify any such tenant
organization and, in making such appointment, such
authority shall consider tenants suggested by such
tenant organizations.
(c) NOTWITHSTANDING ANY PROVISION OF
SUBSECTION (a) OF THIS SECTION OR ANY OTHER
PROVISION OF THE GENERAL STATUTES TO THE CONTRARY,
A COMMISSIONER OF AN AUTHORITY MAY SERVE AS A
JUSTICE OF THE PEACE OR A REGISTRAR OF VOTERS.
Sec. 4. This act shall take effect from its
passage, except that section 1 shall take effect
July 1, 1997.
Approved July 8, 1997