Sec. 8-44a. Housing authority programs for social and supplementary services, project rehabilitation and improvement and energy conservation. State grants-in-aid, loans and deferred loans. Rental Reha
Sec. 8-44a. Housing authority programs for social and supplementary services, project rehabilitation and improvement and energy conservation. State
grants-in-aid, loans and deferred loans. Rental Rehabilitation Fund. Operation or
management plan for housing projects. (a) Any housing authority may prepare and
submit to the Commissioner of Economic and Community Development for approval
a program of social and supplementary services and project rehabilitation and improvement for any or all housing projects within the jurisdiction of such housing authority.
Such program shall include the estimated costs of the services, rehabilitation and improvement and the method and staff required to carry out such program. After approval
of such program by the commissioner, the state, acting by and in the discretion of the
commissioner, may enter into a contract with the housing authority conditioned upon
the housing authority performing the program approved. Such contract shall provide for
state financial assistance in the form of a grant-in-aid, loan, deferred loan or combination
thereof equal to the cost of such program, including administrative or other cost or
expense to be incurred by the state in connection with such program as approved by the
commissioner, provided such contract shall provide financial assistance in the form of
a loan, or deferred loan rather than a grant only in a case where, and to the extent
that, repayment ability exists because of an adequate rental structure or funds are made
available by an agency of the United States government in such amounts and for such
periods of time as are required to repay such loan, together with interest. The contract
shall further provide that in the event such funds provided by an agency of the United
States government shall terminate prior to complete repayment of a loan or deferred
loan made pursuant to this subsection, the remaining balance of such loan shall be
deemed to be a grant-in-aid. In the case of a deferred loan, the contract shall require
that payments on interest are due immediately but that payments on principal may be
made at a later time.
(b) Said commissioner shall establish a program of rehabilitation and major repair,
including any repair, replacement or installation as may be necessary for energy conservation, of (1) existing rental housing projects developed with state financial assistance,
pursuant to this chapter or chapter 129, to restore such projects to a sound, habitable
and energy-efficient condition, (2) housing developed with state financial assistance
pursuant to chapter 138b, (3) projects developed with state financial assistance pursuant
to section 8-214f, and (4) projects developed with state financial assistance pursuant
to section 8-218. Each housing authority, nonprofit corporation, community housing
development corporation, municipal developer or other eligible developer, shall prepare
and submit to said commissioner a request for any necessary construction, rehabilitation
and major repair with respect to each such housing project within the jurisdiction of
such authority, nonprofit corporation, community housing development corporation,
municipal developer or other eligible developer, including the construction or rehabilitation of facilities adjacent to such project which are functionally related to and serve the
needs of such project. Each such request shall include a detailed description and the
estimated cost of such construction, rehabilitation or major repair. After approval by
said commissioner of such construction, rehabilitation or major repair as requested, or
any part thereof, the state, acting by and in the discretion of said commissioner, may
enter into a contract with such authority, nonprofit corporation, community housing
development corporation, municipal developer or other eligible developer, providing for
state financial assistance in the form of a grant-in-aid, loan, deferred loan or combination
thereof equal to the cost of such approved construction, rehabilitation or major repair,
including, in the case of grants-in-aid or loans or deferred 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 with such program as
approved by the commissioner, provided such contract shall provide financial assistance
in the form of a loan or deferred loan rather than a grant only in a case where, and to
the extent that, repayment ability exists because of an adequate rental structure or funds
are made available by an agency of the United States government in such amounts and
for such periods of time as are required to repay such loan or deferred loan, together
with interest. The contract shall further provide that in the event such funds provided
by an agency of the United States government shall terminate prior to complete repayment of a loan or deferred loan made pursuant to this subsection, the remaining balance
of such loan or deferred loan shall be deemed to be a grant-in-aid. Such grants-in-aid,
loans or deferred loans shall be provided from the proceeds of state bonds authorized
and issued in accordance with the provisions of subsection (c) of this section.
(c) For the purposes of subsection (b) of this section the State Bond Commission
shall have power, from time to time to authorize issuance of bonds of the state in one
or more series and in principal amounts not exceeding in the aggregate forty-two million
dollars. 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 Commissioner of Economic and Community Development 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 Treasurer shall pay such principal and interest as the same become due.
(d) The proceeds from the sale of the bonds and notes authorized by subsection (c)
of this section, except refunding bonds and notes, shall be deposited in a fund designated
the "Rental Rehabilitation Fund", which fund shall be used to make the grants, loans
and deferred loans authorized by subsection (b) of this section. Payments from the fund
to authorities shall be made by the State Treasurer on certification of the Commissioner
of Economic and Community Development in accordance with the contract for financial
assistance between the state and such authority. All payments by an authority of state
service charges, as authorized by subsection (f) of this section, financed from the proceeds of the state's general obligation bonds authorized pursuant to any authorization,
allocation or approval of the State Bond Commission made prior to July 1, 1990, shall
be paid to the State Treasurer for deposit in said fund. All payments of service charges
not financed from the proceeds of the state's general obligation bonds shall be paid to
the State Treasurer for deposit in the Housing Repayment and Revolving Loan Fund.
(e) The State Treasurer is authorized to invest such moneys in the Rental Rehabilitation Fund as he deems to be available for such purpose in obligations of or guaranteed
by the state or the United States of America or agencies or instrumentalities thereof and,
without limitation on the foregoing, in such other obligations, including time deposits
or certificates of deposit, as may be permitted investments by the Treasurer for the
General Fund of the state and secured in such manner as the Treasurer may require.
(f) Grants, loans and deferred loans or combinations thereof made under the authority of this section and financed from the proceeds of the state's general obligation bonds
authorized pursuant to any authorization, allocation or approval of the State Bond Commission made prior to July 1, 1990, shall include, as part of the project cost, a state service
charge, as approved by the Commissioner of Economic and Community Development.
(g) The Commissioner of Economic and Community Development shall approve
an operation or management plan of each housing project, which shall provide an income
adequate for debt service, administration, including a state service charge, other operating costs and establishment of reasonable reserves for repairs, maintenance and
replacements, vacancy and collection losses.
(h) Subject to the approval of the Governor, any administrative or other cost or
expense incurred by the state in connection with the carrying out of the provisions of
this section, including the hiring of necessary employees and the entering upon necessary
contracts, may be paid from the Rental Rehabilitation Fund.
(i) Any principal and interest payments received pursuant to this section from eligible developers shall be paid to the State Treasurer for deposit in the General Fund.
(1967, P.A. 522, S. 22; 1969, P.A. 379; P.A. 77-564; 77-614, S. 284, 610; P.A. 78-83, S. 1-4; 78-303, S. 81, 136; P.A.
79-598, S. 3, 4, 10; Oct. Sp. Sess. P.A. 79-4, S. 1, 2; P.A. 80-397, S. 1, 2; P.A. 81-105; 81-230; 81-355; P.A. 84-443, S.
2, 20; P.A. 85-558, S. 3, 17; P.A. 86-217, S. 1, 2; 86-396, S. 4, 25; P.A. 87-380, S. 1, 2; 87-405, S. 2, 26; P.A. 90-238, S.
2, 32; P.A. 92-166, S. 1, 31; 92-214; P.A. 93-309, S. 12, 29; 93-435, S. 70, 95; P.A. 94-40, S. 1, 2; P.A. 95-250, S. 1; P.A.
96-211, S. 1, 5, 6; P.A. 06-93, S. 4.)
History: 1969 act deleted provisions concerning relief from repayment of principal and interest not exceeding 2% of
state loans and grants-in-aid for additional assistance in contracts between housing authority and state; P.A. 77-564 added
Subsecs. (b) and (c) re rehabilitation and repair programs for moderate rental housing projects and re bonding for financing
such programs; P.A. 77-614 substituted department of economic development for commissioner of community affairs,
effective January 1, 1979; P.A. 78-83 amended Subsecs. (a) and (b) to include loans and to clarify specific conditions
governing which form financial assistance is to take; P.A. 78-303 substituted commissioner of economic development for
department of economic development; P.A. 79-598 substituted commissioner of housing for commissioner of economic
development; October, 1979, P.A. 79-4 amended Subsec. (b) to include repairs etc. for energy conservation and energy
efficiency and amended Subsec. (c) to set June 30, 1980, deadline for bond issuance, to raise limit from $10,000,000 to
$12,000,000 with $2,000,000 reserved for energy conservation expenditures; P.A. 80-397 amended Subsec. (c) to change
deadline to June 30, 1983, and to increase limit to $15,000,000 with $3,000,000 reserved for energy conservation expenditures; P.A. 81-105 extended the moderate rental rehabilitation program for five years to a total of ten; P.A. 81-230 allowed
financial assistance in form of loan rather than grant where repayment ability exists because of adequate rental structure;
P.A. 81-355 provided for state recovery of administrative costs and service charges, created moderate rental rehabilitation
fund and provided for approval by the commissioner of an operation or management plan for each housing project in new
Subsecs. (d) to (i); P.A. 84-443 amended Subsec. (c) to increase the authorization limit to $22,000,000 and to remove the
authorization deadline; P.A. 85-558 increased the bond authorization limit in Subsec. (c) to $29,000,000; P.A. 86-217
amended Subsec. (b) to repeal prohibition on paying grants, loans or combination thereof under Subsec. (b) after end of
tenth year following establishment of program; P.A. 86-396 increased bond authorization from $29,000,000 to $35,000,000;
P.A. 87-380 made technical changes, changed "moderate rental housing" to "rental housing", made Subsec. (b) program
applicable to rental housing projects developed with state financial assistance and to adjacent facilities, including construction thereof, and eliminated $3,000,000 reserved for energy conservation expenditures from Subsec. (c); P.A. 87-405
increased the bond authorization from $35,000,000 to $42,000,000; P.A. 90-238 revised provisions re administrative
expenses, state service fees and allocation of moneys to various housing funds; P.A. 92-166 amended Subsec. (a) by making
deferred loans a form of financial assistance available under the section and further provided that payments on interest are
due immediately but that payments on principal may be made at a later time and made technical changes to Subsecs. (b),
(d) and (f) consistent with changes in Subsec. (a); P.A. 92-214 amended Subsec. (b) by making rehabilitation and repair
of housing for the homeless reimbursable expenses under the program and making nonprofit corporations, community
housing development corporations and municipal developers eligible applicants and adding Subdiv. designations; P.A.
93-309 added new Subsec. (j) 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. (j) 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. 94-40 amended Subsec. (b) to make program applicable to projects
developed with financial assistance under Secs. 8-214f, 8-432 and 8-218, and to add reference to eligible developers under
Sec. 8-430(17), effective July 1, 1994; 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 amended Subsec. (b) by
deleting references to repealed sections and deleted former Subsec. (j) re regulations and application to program repealed
by the same act.
See Sec. 8-226 re use of prior bond proceeds for purposes of this section.
Cited. 213 C. 354.