Sec. 8-219b. Financial assistance to elderly homeowners for emergency repairs or rehabilitation.
Sec. 8-219b. Financial assistance to elderly homeowners for emergency repairs or rehabilitation. (a) The Commissioner of Economic and Community Development, acting on behalf of the state, may, in his discretion, enter into a contract with any
person who is sixty-two years of age or older and whose income does not exceed the
maximum qualifying income for eligibility for benefits under the program of tax relief
for certain elderly homeowners under section 12-170aa, to provide, based on the financial needs of such person, a grant-in-aid, loan or deferred loan to enable such person to
finance emergency repairs to or rehabilitation of a dwelling containing up to two residential units, provided such person shall be the owner of such dwelling and shall reside in
at least one of such units. 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) Such grant-in-aid, loan or deferred loan shall not exceed the principal amount
of ten thousand dollars, including such appraisals, inspections, closing costs and other
fees, and, in the case of grants-in-aid, 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, initial service
charges as the commissioner may by regulation approve. Any grant-in-aid, loan or deferred loan contracted for pursuant to sections 8-219a to 8-219c, inclusive, shall only
be used for repairs or rehabilitation necessary to permit the continued use of such dwelling for residential purposes.
(c) Any loan or deferred loan contracted for pursuant to sections 8-219a to 8-219c,
inclusive, shall be secured by a mortgage on the dwelling for which such loan or deferred
loan was made pursuant to subsection (a) of this section. If the recipient of such loan or
deferred loan assigns, transfers or otherwise conveys his or her interest in such dwelling,
ceases to occupy such dwelling or uses all or any part of the proceeds of such loan or
deferred loan for any purpose other than the emergency repair or rehabilitation of such
dwelling, the unpaid principal balance of such mortgage, together with interest thereon,
shall, at the option of the commissioner, become due and payable. If the recipient of
any loan or deferred loan is unable to repay the loan or deferred loan, the commissioner,
at the commissioner's discretion, may adjust the interest rate, terms and conditions of
the loan or deferred loan to facilitate repayments.
(d) Repayment of any loan or deferred loan provided in accordance with sections
8-219a to 8-219c, inclusive, shall be subject to such interest rate, terms and conditions
as the commissioner may establish. In no case shall the interest rate exceed one per cent
above the rate of interest borne by the bonds of the state last issued prior to the date of
issue of such loan or deferred loan. In no case shall the term of such loan or deferred
loan exceed thirty years. Payments by recipients of any such loan or deferred loan shall
be paid to the State Treasurer and deposited in the General Fund of the state.
(e) In the case of any grant-in-aid, loan or deferred loan made pursuant to sections
8-219a to 8-219c, inclusive, the contract for such grant-in-aid, loan or deferred loan
shall provide that if the dwelling for which such grant-in-aid, loan or deferred loan was
made pursuant to subsection (a) of this section ceases, within ten years of the date of
such grant, loan or deferred loan, to be used as a dwelling for the person to whom such
grant, loan or deferred loan was made, or if such person assigns, transfers or otherwise
conveys such person's interest in such dwelling, an amount equal to the amount of such
grant, loan or deferred loan, minus ten per cent for each full year which has elapsed
since the date of such grant, loan or deferred loan, shall be repaid to the state and that
a lien shall be placed on such dwelling in favor of the state to ensure that such amount
will be repaid in the event of such change in occupancy.
(P.A. 87-494, S. 2, 3, 5; P.A. 90-238, S. 21, 32; P.A. 92-166, S. 17, 31; P.A. 95-250, S. 1; P.A. 96-211, S. 1, 5, 6; P.A.
07-217, S. 35.)
History: P.A. 90-238 revised provisions re initial service charges; P.A. 92-166 amended Subsec. (a) to make 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 amended Subsecs. (b) to (e), inclusive, to
make technical changes consistent with the changes in Subsec. (a); 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. 07-217 made technical changes in Subsecs. (c) and (e), effective July 12, 2007.