Sec. 8-119h. State assistance to authorities, municipal developers and nonprofit corporations.
Sec. 8-119h. State assistance to authorities, municipal developers and nonprofit corporations. Upon preliminary approval by the State Bond Commission pursuant to the provisions of section 3-20, the state, acting by and through the Commissioner
of Economic and Community Development, may enter into a contract or contracts with
an authority, a municipal developer or a nonprofit corporation for state financial assistance for a congregate housing project, in the form of capital grants, interim loans, permanent loans, deferred loans or any combination thereof for application to the development
cost of such project or projects. A contract with an authority may provide that in the
case of any loan made in conjunction with any housing assistance funds provided by
an agency of the United States government, if such housing assistance funds terminate
prior to complete repayment of a loan made pursuant to this section, the remaining
balance of such loan may be converted to a capital grant or decreased loan. Any such
state assistance contract with an authority for a capital grant or loan entered into prior
to the time housing assistance funds became available from an agency of the United
States government, may, upon the mutual consent of the commissioner and the authority,
be renegotiated to provide for a loan or increased loan in the place of a capital grant or
loan or a part thereof, consistent with the above conditions. Such capital grants or loans
shall be in an amount not in excess of the development cost of the project or projects,
including, in the case of grants or loans financed from the proceeds of the state's general
obligation bonds issued pursuant to any authorization, allocation or approval of the State
Bond Commission made prior to July 1, 1990, administrative or other cost or expense
to be incurred by the state in connection therewith, as approved by said commissioner.
In anticipation of final payment of such capital grants or loans, the state, acting by and
through said commissioner and in accordance with such contract, may make temporary
advances to the authority, municipal developer or nonprofit corporation for preliminary
planning expense or other development cost of such project or projects. Any loan provided pursuant to this section shall bear interest at a rate to be determined in accordance
with subsection (t) of section 3-20. Any such authority, municipal developer or nonprofit
corporation may, subject to the approval of the Commissioner of Economic and Community Development, contract with any other person approved by the Commissioner of
Economic and Community Development for the operation of a project undertaken pursuant to this part.
(P.A. 77-582, S. 5, 10; 77-614, S. 284, 587, 610; P.A. 78-303, S. 81, 85, 136; P.A. 79-598, S. 3, 4, 10; P.A. 83-490;
P.A. 85-444, S. 4; P.A. 87-416, S. 5, 24; 87-436, S. 7, 23; P.A. 90-238, S. 10, 32; P.A. 92-166, S. 7, 31; P.A. 93-262, S.
78, 87; 93-309, S. 17, 29; 93-435, S. 73, 95; P.A. 95-250, S. 1; P.A. 96-211, S. 1, 5, 6; P.A. 06-93, S. 9.)
History: P.A. 77-614 substituted department of economic development for commissioner of community affairs, effective
January 1, 1979; P.A. 78-303 substituted commissioner for department; P.A. 79-598 substituted commissioner of housing
for commissioner of economic development; P.A. 83-490 allowed for any person approved by the commissioner of housing
to contract to operate a project; P.A. 85-444 included references to nonprofit corporations, provided for state financial
assistance in form of loans without regard to federal assistance, modified provisions re conversion of loans to grants and
deleted references to commissioner on aging and to community housing development corporations and other corporations
approved by commissioner on aging; P.A. 87-416 provided that the interest rates on loans would be determined in accordance with Sec. 3-20(t); P.A. 87-436 added provisions authorizing state to enter into contracts with municipal developers;
P.A. 90-238 revised provisions re administrative expenses; P.A. 92-166 amended Subsec. (a) to make technical change
adding provision re deferred loans, consistent with 1992 public acts; P.A. 93-262 removed reference to Sec. 17a-308(a),
effective July 1, 1993; P.A. 93-309 designated the existing section as Subsec. (a) and added new Subsec. (b) prohibiting
the commissioner of housing, on and after July 1, 1994, or the effective date of regulations adopted under Sec. 8-437, from
accepting applications for housing developments that qualify for financial assistance under Sec. 8-433, effective July 1,
1993; P.A. 93-435 amended Subsec. (b) by deleting the reference to "July 1, 1994," re the deadline for the receipt by the
commissioner of housing of certain applications for state financial assistance, and made technical changes, 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; P.A. 06-93 deleted former Subsec. (b) re regulations and application to
program repealed by the same act and made a conforming change.