Sec. 8-403. Second mortgage loans to rental housing projects financed by Connecticut Housing Finance Authority first mortgages. - Connecticut Statutes

      Sec. 8-403. Second mortgage loans to rental housing projects financed by Connecticut Housing Finance Authority first mortgages. Upon preliminary approval by the State Bond Commission pursuant to the provisions of section 3-20, the state, acting by and through the Department of Economic and Community Development may enter into a contract with the authority to provide state financial assistance to a mortgagor of the authority in the form of a loan secured by a second mortgage for any housing project for which the authority has provided financial assistance in the form of a loan secured by a first mortgage; provided any such financial assistance to be funded with proceeds of bonds authorized by public or special acts effective on or after July 1, 1995, shall be provided as follows: Commencing October 1, 1995, upon preliminary approval of the State Bond Commission pursuant to the provisions of section 3-20, the state, acting by and through the Department of Economic and Community Development may provide a grant-in-aid to the authority, for purposes of permitting the authority to extend state financial assistance to the developer or mortgagor of the authority in the form of a loan secured by a second mortgage for any housing project for which the authority has provided financial assistance in the form of a loan secured by a first mortgage. Such loan shall be made for the purpose of providing additional financing for the project. Any loan made under this section shall bear interest payable quarterly on the first days of January, April, July and October for the preceding calendar quarter, or at such other times as are determined by the authority at a rate determined by the State Bond Commission under subsection (t) of section 3-20 and shall be repayable in such installments as may be determined by the commissioner or the authority, as the case may be, within fifty years from the date of completion of the project. Loan repayments shall be paid to the State Treasurer and deposited in the General Fund.

      (P.A. 88-261, S. 4, 8; P.A. 95-250, S. 35, 42; 95-309, S. 8, 11, 12; P.A. 96-69, S. 1.)

      History: P.A. 95-250 substituted "Commissioner of Economic and Community Development" for "Commissioner of Housing" and added provisions re financial assistance funded from the proceeds of bonds approved by public or special acts effective on or after July 1, 1995; P.A. 95-309 changed the reference to "proceeds of bonds approved by public or special acts" to "proceeds of bonds authorized by public or special acts" and changed effective date of P.A. 95-250 but did not affect this section; P.A. 96-69 added provision requiring loan repayments be paid to State Treasurer and deposited in the General Fund.