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General Assembly

 

Substitute Bill No. 5282

February Session, 2016

 

*_____HB05282AGE___030916____*

AN ACT ESTABLISHING A REVOLVING LOAN FUND TO ASSIST ELDERLY HOMEOWNERS.

Be it enacted by the Senate and House of Representatives in General Assembly convened:

Section 1. (NEW) (Effective July 1, 2016) (a) For purposes of this section, "elderly homeowner" means any owner of real property liable for property taxes under chapter 203 of the general statutes who (1) is sixty-five years of age or older on the date of application for a loan under this section, (2) has resided in the municipality levying such property taxes for a period of not less than ten years before the date of application for a loan under this section, and (3) has qualifying income in the tax year immediately preceding the date of application for a loan under this section that does not exceed the income limits set forth in section 12-170aa of the general statutes, as adjusted annually.

(b) There is established a revolving loan fund to be known as the "Elderly Homeowner Property Tax Revolving Loan Fund". Investment earnings credited to the fund shall become part of the assets of the fund. Any balance remaining in the fund at the end of any fiscal year shall be carried forward in the fund for the next fiscal year. Payments of principal or interest on a low interest loan made pursuant to this section shall be paid to the State Treasurer for deposit in the fund. The fund shall be used to make loans at the prevailing rate of interest, as determined by the Secretary of the Office of Policy and Management, pursuant to subsection (c) of this section and to pay reasonable and necessary expenses incurred in administering loans under this section.

(c) (1) Notwithstanding section 12-172 of the general statutes, the state, acting through and in the discretion of the Secretary of the Office of Policy and Management, may provide financial assistance in the form of loans at the prevailing rate of interest to elderly homeowners, provided (A) the elderly homeowner has failed to pay taxes levied against the elderly homeowner's property under chapter 203 of the general statutes for not less than the two assessment years preceding the date of application for a loan under this section, (B) the real property subject to tax is not otherwise encumbered, and (C) the principal amount of such loan does not exceed the amount of taxes levied against the real property. The secretary may impose asset limits as a condition of eligibility for loans provided pursuant to this section.

(2) If the state provides such financial assistance, the Secretary of the Office of Policy and Management shall have a lien on the real property subject to taxes in the amount of such financial assistance, plus interest at the prevailing rate of interest as determined by the secretary. Such lien shall have priority over all other liens on such real property except a municipal property tax lien.

(3) Any financial assistance provided under this section shall not disqualify the elderly homeowner receiving such assistance from any benefits for which such elderly homeowner is eligible under the provisions of sections 12-129b and 12-129c of the general statutes, section 12-129n of the general statutes or section 12-170aa of the general statutes.

This act shall take effect as follows and shall amend the following sections:

Section 1

July 1, 2016

New section

Statement of Legislative Commissioners:

In Section 1(c)(1), "acting by" was changed to "acting through" for clarity.

AGE

Joint Favorable Subst. -LCO