Sec. 8-440. Definition of residential building.
Sec. 8-444. Special homeowner advocate in Department of Housing. Responsibilities.
Sec. 8-445. Bond issue for Crumbling Foundations Assistance Fund.
Sec. 8-440. Definition of residential building. For purposes of sections 7-374b, sections 8-441 to 8-444, inclusive, sections 12-701, 29-265f and 38a-91vv, and sections 8-265tt to 8-265xx, inclusive, “residential building” means (1) a single-family or multifamily residential dwelling, including, but not limited to, (A) a residential unit in a condominium, as such terms are defined or used in section 47-68a, or (B) a unit that is used for residential purposes and located in a common interest community, as such terms are defined in section 47-202, and (2) a building containing one or more of the units described in subparagraph (A) or (B) of subdivision (1) of this section.
(June Sp. Sess. P.A. 17-2, S. 334; P.A. 19-192, S. 2.)
History: June Sp. Sess. P.A. 17-2 effective October 31, 2017; P.A. 19-192 added reference to Secs. 8-265tt to 8-265xx and redefined “residential building”, effective July 1, 2019.
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Sec. 8-441. Crumbling Foundations Assistance Fund. Department of Housing application for receipt and administration of federal funds. (a) There is established an account to be known as the “Crumbling Foundations Assistance Fund” which shall be a separate, nonlapsing account within the General Fund. The account shall contain any moneys required by law to be deposited in the account and any voluntary contributions. Moneys in the account shall be made available to incorporate the captive insurance company established pursuant to section 38a-91vv. Moneys in the account shall be transferred to such captive insurance company upon licensure by the Insurance Department. Voluntary contributions to the fund shall be deemed to be given for the purpose of providing financial assistance to owners of residential buildings for the repair or replacement of concrete foundations of such buildings that have deteriorated due to the presence of pyrrhotite and to minimize any negative impact on the economies of municipalities in which such residential buildings are located. No such contributions shall be further restricted by the donor or used by the captive insurance company for any other purposes. The captive insurance company shall not return any portion of such contributions to any donor. Any bond proceeds deposited into the fund shall be kept separate from any and all other funds deposited into the fund.
(b) The Department of Housing may apply for, receive and administer any federal funds, including, but not limited to, funds made available by the United States Department of Housing and Urban Development Section 108 Loan Guarantee program to assist owners of residential buildings having concrete foundations that have deteriorated due to the presence of pyrrhotite. All such federal funds received with the intent of assisting owners of residential buildings having concrete foundations that have deteriorated due to the presence of pyrrhotite shall be deposited into the Crumbling Foundations Assistance Fund established pursuant to subsection (a) of this section.
(June Sp. Sess. P.A. 17-2, S. 335.)
History: June Sp. Sess. P.A. 17-2 effective October 31, 2017.
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Sec. 8-442. Establishment of Collapsing Foundations Credit Enhancements Program. Connecticut Housing Finance Authority to publish plain language summary of program. (a) For the purposes of this section:
(1) “Eligible borrower” means the owner of a residential building;
(2) “Participating lender” means a depository bank or credit union that participates in the Collapsing Foundations Credit Enhancements Program established pursuant to this section; and
(3) “Qualifying loan” means any loan provided to an eligible borrower for the purpose of repairing or replacing a concrete foundation that has deteriorated due to the presence of pyrrhotite and (A) is issued by a participating lender, (B) is subject to the underwriting standards established by the participating lender, (C) carries a rate of interest in accordance with subsection (b) of this section, and (D) is made pursuant to the Collapsing Foundations Credit Enhancements Program.
(b) There is established a Collapsing Foundations Credit Enhancements Program, administered by the Connecticut Housing Finance Authority, for the purpose of assisting eligible borrowers to obtain necessary funding for replacement or repair of concrete foundations that have deteriorated due to the presence of pyrrhotite. The program shall, among other efforts, make one or more financial products or credit enhancements available, including, but not limited to, loan guarantees that may enable participating lenders to make qualifying loans with loan-to-value ratios in excess of regulatory standards. To participate in the program, the participating lender shall offer a qualifying loan with an interest rate that is not less than one-half of one percentage point below the interest rate that is otherwise available to the eligible borrower based on the creditworthiness of such eligible borrower.
(c) The Connecticut Housing Finance Authority shall seek the participation of banks and credit unions in the Collapsing Foundations Credit Enhancements Program and shall develop the terms, conditions and standards for such program, in consultation with the Lieutenant Governor and representatives of the banking and credit union industries, not later than thirty days before the program, or any phase of the program, is made available to eligible borrowers. The terms, conditions and standards that are developed shall identify the necessary form of inspection or testing to verify that the eligible borrower's foundation has deteriorated due to the presence of pyrrhotite and the terms and conditions of any financial product or credit enhancement that may be made available pursuant to the program, taking into account the funding that may be necessary to support such financial product or credit enhancement. The program may be launched in phases and shall permit a participating lender to make a qualifying loan with or without utilizing any other financial products or credit enhancements developed pursuant to such program.
(d) The Connecticut Housing Finance Authority shall publish a plain language summary of such program and the borrower eligibility requirements on the Internet web site of the authority not later than fifteen days before such program, or any phase of such program, is made available to property owners.
(June Sp. Sess. P.A. 17-2, S. 337.)
History: June Sp. Sess. P.A. 17-2 effective October 31, 2017.
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Sec. 8-443. Municipal joint borrowing to pay for cost of project to abate deleterious condition re certain concrete foundations. Municipal agreement with captive insurance company to provide financial assistance to owners of certain residential buildings with concrete foundations. (a) Two or more municipalities may, subject to the provisions of section 10a-185 and chapter 187 and the approval of the legislative body of each such municipality, jointly borrow from any source for the purpose of paying for all or part of the cost of any project entered into jointly to abate a deleterious condition on real property that, if left unabated, would cause the collapse of a concrete foundation due to the presence of pyrrhotite and damage the housing stock in such participating municipalities to such an extent that a negative impact on such participating municipalities' economies would result.
(b) In addition to the powers enumerated in section 7-148, any two or more municipalities who jointly borrow pursuant to subsection (a) of this section may enter into an agreement with the captive insurance company established pursuant to section 38a-91vv, or any participating lender, as defined in section 8-442, to jointly or otherwise provide financial assistance to owners of residential buildings with concrete foundations that have deteriorated due to the presence of pyrrhotite.
(June Sp. Sess. P.A. 17-2, S. 343.)
History: June Sp. Sess. P.A. 17-2 effective October 31, 2017.
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Sec. 8-444. Special homeowner advocate in Department of Housing. Responsibilities. There shall be a special homeowner advocate within the Department of Housing. Said advocate shall be responsible for: (1) Coordinating the efforts of the state to provide assistance to owners of residential buildings with concrete foundations that have deteriorated due to the presence of pyrrhotite, (2) working with the federal government regarding any support provided by the federal government to the owners of such residential buildings, (3) advising and assisting the owners of such residential buildings in making claims for financial assistance pursuant to section 38a-91vv, (4) assisting the owners of such buildings in accessing any other available assistance or support, (5) referring the owners of such residential buildings to any entity that provides assistance or support, (6) assisting in the resolution of complaints concerning the operations of the captive insurance company established pursuant to section 38a-91vv, (7) filing a report, not less than annually, with the joint standing committees of the General Assembly having cognizance of matters relating to insurance, finance, planning and development, housing and public safety describing any trends in the complaints described in subdivision (6) of this section and making recommendations to improve the efficiency, fairness or operations of the captive insurance company established pursuant to section 38a-91vv, and (8) testifying at any hearing held by one or more committees of the General Assembly regarding the report described in subdivision (7) of this section.
(June Sp. Sess. P.A. 17-2, S. 347.)
History: June Sp. Sess. P.A. 17-2 effective October 31, 2017.
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Sec. 8-445. Bond issue for Crumbling Foundations Assistance Fund. (a) For the purposes described in subsection (b) of this section, the State Bond Commission shall have the power from time to time to authorize the issuance of bonds of the state in one or more series and in principal amounts not exceeding in the aggregate two hundred million dollars, provided (1) twenty million dollars shall be effective from October 31, 2017, (2) twenty million dollars shall be effective July 1, 2018, (3) twenty million dollars shall be effective July 1, 2019, (4) twenty million dollars shall be effective July 1, 2020, (5) twenty million dollars shall be effective July 1, 2021, (6) twenty-five million dollars shall be effective July 1, 2022, (7) twenty-five million dollars shall be effective July 1, 2023, (8) twenty-five million dollars shall be effective July 1, 2024, and (9) twenty-five million dollars shall be effective July 1, 2025.
(b) The proceeds of the sale of said bonds, to the extent of the amount stated in subsection (a) of this section, shall be used by the Department of Housing, for the purposes of the Crumbling Foundations Assistance Fund.
(c) All provisions of section 3-20, or the exercise of any right or power granted thereby, which are not inconsistent with the provisions of this section are hereby adopted and shall apply to all bonds authorized by the State Bond Commission pursuant to this section, and temporary notes in anticipation of the money to be derived from the sale of any such bonds so authorized may be issued in accordance with said section 3-20 and from time to time renewed. Such bonds shall mature at such time or times not exceeding twenty years from their respective dates as may be provided in or pursuant to the resolution or resolutions of the State Bond Commission authorizing such bonds. None of said bonds shall be authorized except upon a finding by the State Bond Commission that there has been filed with it a request for such authorization which is signed by or on behalf of the Secretary of the Office of Policy and Management and states such terms and conditions as said commission, in its discretion, may require. Said bonds issued pursuant to this section shall be general obligations of the state and the full faith and credit of the state of Connecticut are pledged for the payment of the principal of and interest on said bonds as the same become due, and accordingly and as part of the contract of the state with the holders of said bonds, appropriation of all amounts necessary for punctual payment of such principal and interest is hereby made, and the State Treasurer shall pay such principal and interest as the same become due.
(June Sp. Sess. P.A. 17-2, S. 553; P.A. 21-111, S. 95.)
History: June Sp. Sess. P.A. 17-2 effective October 31, 2017; P.A. 21-111 amended Subsec. (a) to increase aggregate authorization from $100,000,000 to $200,000,000, of which $25,000,000 is effective July 1, 2022, $25,000,000 is effective July 1, 2023, $25,000,000 is effective July 1, 2024, and $25,000,000 is effective July 1, 2025, effective July 1, 2021.
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