Sec. 8-214d. State financial assistance for establishing community housing land bank and land trust. Regulations.
Sec. 8-214d. State financial assistance for establishing community housing
land bank and land trust. Regulations. (a) The state, acting by and in the discretion
of the Commissioner of Economic and Community Development, may contract with a
nonprofit corporation for state financial assistance in the form of a state grant-in-aid,
loan or deferred loan to such corporation on such terms and conditions as the commissioner may prescribe. Such grant-in-aid, loan or deferred loan shall be used by such
corporation to acquire, hold and manage real property for the purpose of providing for
existing and future housing needs of very low, low and moderate income families. In
the case of a deferred loan, the contract shall require that payments on interest are due
currently but that payments on principal may be made at a later time. The commissioner
may prescribe the terms and conditions by which real property acquired under this section shall be either held for the existing and future housing needs of very low, low and
moderate income families or placed in a community land trust, except that such terms
and conditions, in the discretion of the commissioner and with the approval of the State
Bond Commission, may be subordinated in the case of a subsequent first mortgage
or a requirement of a governmental program relating to such real property. Ancillary
housing-related services may be located on such real property. The commissioner shall
give notice of an application for financial assistance under this section which would
complete a partially constructed housing development to the chief executive official of
the municipality in which the real property is located. A nonprofit corporation holding
title to such real property, with or without structures, may lease such real property to
very low, low and moderate income families, limited equity cooperatives or other corporations, provided that the terms of any such lease shall require that such real property
be developed and used solely for the purpose of housing for very low, low and moderate
income families. The lessee may hold title to any building or improvement situated on
real property acquired with financial assistance made under this section, provided the
nonprofit corporation holding title to such real property shall have first option to purchase any building or improvement that the lessee may place on such real property at
a below-market price set forth in such lease. The legitimate heirs of any such lessee
shall have the right under such lease to assume the lease upon the death of such lessee
if the lessee is a natural person and if such heirs agree to make the leased premises their
principal residence.
(b) A nonprofit corporation holding title to real property acquired with state financial assistance made under this section may convey title to structures and improvements
situated upon such real property to very low, low and moderate income families, limited
equity cooperatives or other corporations, provided (1) the terms and conditions of any
instrument conveying such title requires that such structures and improvements be developed and used solely for the purpose of housing for very low, low or moderate income
families, except that such terms and conditions, in the discretion of the commissioner
and with the approval of the State Bond Commission, may be subordinated in the case
of a subsequent first mortgage or a requirement of a governmental program relating to
such real property, (2) the nonprofit corporation retains title to the real property upon
which such structures and improvements are situated, and (3) the nonprofit corporation
shall have first option to purchase any structures and improvements transferred at a
below-market price agreed to at the time of such transfer. A nonprofit corporation holding title to real property acquired with state financial assistance made under this section
for which a declaration of condominium has been filed may transfer the units in such
condominium to (A) another eligible nonprofit corporation as determined by the commissioner, or (B) very low, low or moderate income families in accordance with chapter
828, subject to deed restrictions, acceptable to the commissioner, requiring that the
units be used solely for the purpose of housing for very low, low and moderate income
families, provided in the case of a transfer under subparagraph (B) of this subdivision,
the original nonprofit corporation shall have first option to purchase the unit at a below-market price agreed to at the time of acquisition of the unit by the family.
(c) A nonprofit corporation existing on or after October 1, 1991, and holding title
to real property acquired with state financial assistance made under this section may
convey title to such real property, with the approval of the commissioner, to a community
land trust corporation. A nonprofit corporation holding title to real property which has
been acquired with state financial assistance under this section for the existing and future
needs of very low, low or moderate income families, may, with the approval of the
commissioner, convey title to such real property to another nonprofit corporation.
(d) A nonprofit corporation existing on or after October 1, 1991, and holding title
to real property acquired with state financial assistance made under this section, may
lease such real property, with the approval of the commissioner, to a partnership, as
defined in section 34-301, or a limited partnership, as defined in section 34-9, provided
the nonprofit corporation has a material role in such partnership or limited partnership.
The terms of any such lease shall require that such real property be developed and used
solely for the purpose of housing for very low, low and moderate income families. The
lessee may hold title to any building or improvement situated on real property acquired
with financial assistance made under this section, provided the nonprofit corporation
holding title to such real property shall have first option to purchase any building or
improvement that the lessee may place on such real property at a below-market price
set forth in the lease.
(e) If a nonprofit corporation fails to develop the project in accordance with the
development plan for the project and title to the land or interests in land acquired with
state financial assistance under this section vests in the state pursuant to a default, foreclosure action, deed-in-lieu of foreclosure, voluntary transfer, or other similar voluntary
or compulsory action, the commissioner may, upon approval of the State Bond Commission, convey such land or interests in land to the municipality in which the land or
interests in land is located. The municipality shall use the land or interests in land, or
shall cause the land or interests in land to be used for, or in conjunction with, activities
related to, or similar to, any program administered by the commissioner pursuant to
state or federal law.
(f) The Commissioner of Economic and Community Development shall adopt regulations, in accordance with chapter 54, to carry out the purposes of sections 8-214b to
8-214e, inclusive. Such regulations shall include, without limitation, provisions concerning the terms and conditions of such grants-in-aid, loans or deferred loans and the
conditions for approval of the articles of incorporation or basic documents of organization of a nonprofit corporation applying for assistance under said sections.
(g) As used in this section, housing-related services and facilities includes but is
not limited to, administrative, community, health, recreational, educational and child-care facilities relevant to an affordable housing development, as defined by the commissioner in regulations adopted in accordance with chapter 54.
(h) (1) The Commissioner of Economic and Community Development may make
a determination, based upon a full examination of the circumstances, that a nonprofit
corporation is unable to develop or manage the land or interests in land acquired with
state financial assistance under this section. Upon such a determination, the commissioner may cause title to the land or interests in land acquired with state financial assistance under this section to vest in the state by foreclosure, voluntary transfer, or other
similar voluntary or compulsory action, and the commissioner may take any action
which is in the best interests of the state to convey, upon approval of the Secretary of
the Office of Policy and Management, such land or interests in land, including, but not
limited to, (A) transferring, or authorizing the transfer of, the land or interests in land
to the low and moderate income families that reside on such land, (B) determining
whether any restrictions in the deed or deeds for the land or interests in land shall be
modified or removed prior to conveying such land or interests in land and authorizing
such modifications or removals, or (C) establishing such terms and conditions for such
conveyance as the commissioner deems appropriate under each particular transaction.
(2) The commissioner shall authorize the conveyance of land or interests in land
under subdivision (1) of this subsection in no more than three locations.
(3) The provisions of this subsection shall terminate on October 1, 2000.
(P.A. 87-441, S. 3, 5; P.A. 90-238, S. 30, 32; P.A. 91-182; P.A. 92-70, S. 1; 92-166, S. 10, 31; May Sp. Sess. P.A. 92-11, S. 31, 70; P.A. 94-33; 94-50; P.A. 95-250, S. 1; 95-296, S. 4, 5; P.A. 96-77, S. 1, 17; 96-211, S. 1, 5, 6; 96-249, S. 1,
14; P.A. 99-243, S. 1, 2; P.A. 05-186, S. 1.)
History: P.A. 90-238 substituted "real property" for references to land, applied provisions to "very low income families",
inserted new Subsec. (b) re conveyance of title to or interest in real property or structures upon it by nonprofit corporation
holding title which acquired the property with state financial assistance, relettering former Subsec. (b) as (c); P.A. 91-182
amended Subsec. (a) to authorize the commissioner to prescribe terms and conditions for acquisition of real property under
section and to permit ancillary housing related services on property acquired under section, inserted new Subsec. (c) to
provide for certain transfers relettering former Subsec. (c) as (d) and added new Subsec. (e) to define housing-related
services and facilities; P.A. 92-70 amended Subsec. (b) to add provision regarding sale by nonprofit corporations of
condominiums acquired with financial assistance under section; P.A. 92-166 amended Subsec. (a) by making loans and
deferred loans a form of financial assistance available under section and providing that payments on interest are due
immediately but that payments on principal may be made at a later time and made technical changes to Subsec. (d),
consistent with changes in Subsec. (a); May Sp. Sess. P.A. 92-11 made a technical change in Subsec. (b); P.A. 94-33
amended Subsec. (a) by adding provision that the commissioner of housing notify a municipality in which an application
to complete a partially constructed housing development has been filed; P.A. 94-50 amended Subsecs. (a) and (b) by adding
provision re subordination of use condition in the case of a subsequent first mortgage or requirement of a government
program; 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. 95-296 inserted new Subsec. (d) re lease of property acquired
with financial assistance under section and relettered former Subsecs. (d) and (e) accordingly, effective July 6, 1995; P.A.
96-77 amended Subsec. (d) to replace reference to "section 34-44" with "section 34-301", effective July 1, 1997; P.A. 96-249 inserted new Subsec. (e) authorizing conveyance to municipalities upon failure of nonprofit corporation to fulfill
development plan and relettered remaining Subsecs. accordingly, effective June 6, 1996; P.A. 99-243 added Subsec. (h)
re authority of commissioner, under certain circumstances, to convey land acquired under this section, effective June 29,
1999; P.A. 05-186 amended Subsec. (b) to allow a nonprofit corporation to transfer units in a condominium acquired with
financial assistance under this section to another eligible nonprofit corporation.
See Secs. 47-301 to 47-304, inclusive, re community land trusts.