Sec. 8-68h. Tenant escrow accounts.
Sec. 8-68h. Tenant escrow accounts. (a) Each housing authority created pursuant
to section 8-40 shall establish in accordance with this section a program to enable tenants
to save funds sufficient to rent a private dwelling unit or to make a down payment for
a home.
(b) Each housing authority shall notify each tenant residing in units operated by the
authority whose rent exceeds the fair market value for a dwelling unit of equivalent size
for the area established under Section 8 of the United States Housing Act of 1937, as
amended, that such tenant is eligible for the program established under this section.
Upon written request of an eligible tenant, the housing authority shall deposit in a non-interest-bearing escrow account for such tenant in a financial institution an amount equal
to the difference between the rent due to the authority from the tenant and the fair market
rental for a dwelling unit of equivalent size for the area established under Section 8 of
the United States Housing Act of 1937, as amended. Each deposit into a tenant escrow
account shall be made from rent payments received by the housing authority from the
tenant. The funds in such account shall be used by the tenant to rent a private dwelling
unit or for a down payment for a home. The written request shall state the amount the
tenant determines to be sufficient to rent a private dwelling unit or to make a down
payment for a home. Upon written request of the tenant, the director may revise such
amount once a year, on or after the time the account reaches one hundred per cent of
such amount or at such other time the director of the housing authority deems appropriate. Such revision shall be based on rental and sales price levels for housing in the area.
(c) The director of the housing authority shall notify the tenant, in writing, when
the balance in such account equals seventy-five per cent of the amount specified by the
tenant in the notice to the authority under subsection (b) of this section. The authority
shall also provide written notice to the tenant when the balance equals such specified
amount. No deposit shall be made by the authority into a tenant escrow account in excess
of such specified amount. The director shall annually provide the tenant with a report
stating the balance in the account.
(d) After receipt of notice that the balance in the account equals the specified
amount, the tenant shall have one hundred eighty days to vacate the unit in the housing
project. If the tenant fails to vacate, the funds in the account shall revert to the housing
authority. Notwithstanding the provisions of this section to the contrary, the director
shall extend the time period to vacate if additional time is needed for the tenant to find
other housing or for other good cause.
(e) Prior to vacating his dwelling unit, the tenant shall submit to the director documentation satisfactory to the director that the funds in the account shall be used for rental
of a private dwelling unit or for a down payment on a house. The director shall remit
the funds in the escrow account to the tenant upon receipt of such documentation.
(f) The director shall order reversion to the housing authority of the funds in any
escrow account established under this section (1) not less than one hundred eighty days
after the tenant receives notice that the account equals the specified amount unless such
time limit has been extended pursuant to subsection (d) of this section, (2) upon receipt
by the tenant of a written finding by the director that it is not reasonable to expect the
balance to ever equal the specified amount because of a financial hardship experienced
by the tenant or (3) if the tenant becomes thirty days in arrears in his rental payments
to the authority. In the case of reversion under subdivision (3) of this subsection, if,
within one hundred twenty days of reversion, or later, as permitted by the director for
good cause shown, the tenant pays to the authority all amounts in arrears, such escrow
account shall be reinstated with the same balance as of the date of reversion.
(g) Each housing authority shall establish written procedures to implement this section. Such procedures shall include provisions for tenants to dispute an action by a
housing authority made under this section.
(h) On or before November 1, 1992, and annually thereafter, the director of each
housing authority shall submit a report to the Commissioner of Economic and Community Development on the tenant escrow account program administered by the housing
authority.
(P.A. 91-202; P.A. 92-101; P.A. 95-250, S. 1; P.A. 96-211, S. 1, 5, 6.)
History: P.A. 92-101 amended Subsec. (b) to specify that the amounts deposited in the account may be revised when
the account reaches 100% of the amount or the director deems appropriate, amended Subsec. (d) to authorize the commissioner to extend the period to vacate for any good cause, added Subsec. (h) requiring the director of each housing authority
establishing a program under this section to submit an annual report to the commissioner of housing and made technical
changes in Subsecs. (c) and (f); P.A. 95-250 and P.A. 96-211 replaced Commissioner and Department of Housing with
Commissioner and Department of Economic and Community Development.