Sec. 8-243. Definitions.
Sec. 8-243. Definitions. The following terms shall have the following meanings
unless the context clearly indicates another meaning and intent:
(a) "Act" means this chapter as amended from time to time;
(b) "Authority" means the Connecticut Housing Finance Authority as created under
section 8-244;
(c) "Housing", "housing project" or "project" means a work or undertaking having
as its primary purpose the provision of safe and adequate housing and related facilities
for low and moderate income families and persons, and includes existing dwelling units
for low and moderate income families and persons, notwithstanding that said housing
provides other dwelling accommodations in addition to the primary purpose of providing
dwelling accommodations for low and moderate income families and persons;
(d) "Related facilities" means commercial, office, health, welfare, administrative,
recreational, community and service facilities incidental and pertinent to housing as
determined by the authority;
(e) "Rents", "rentals" or "carrying charges" means the charges, excluding security
deposits and down payments, paid for occupancy of housing financed or assisted under
this chapter, whether such housing is owned or operated on a landlord-tenant or home
ownership basis or as a condominium or a cooperative;
(f) "Project cost" means the sum total of all costs incurred in the development of
a housing project, which are approved by the authority as reasonable and necessary,
including, but not limited to (1) costs of land acquisition and any buildings thereon; (2)
costs of site preparation, demolition and development; (3) architectural, engineering,
legal, authority and other fees and charges paid or payable in connection with the planning, execution and financing of the project; (4) cost of necessary studies, surveys,
plans and permits; (5) insurance, interest, financing, tax and assessment costs and other
operating and carrying costs during construction; (6) cost of construction or reconstruction, and fixtures and equipment related to such construction or reconstruction; (7) cost
of land improvements; (8) necessary expenses in connection with the initial occupancy
of the project; (9) a reasonable profit or fee to the builder and developer; (10) an allowance established by the authority for working capital, replacement and contingency
reserves, and reserves for any anticipated operating deficits during the first two years
of occupancy; (11) the cost of such other items, including tenant relocation, as the authority shall deem to be reasonable and necessary for the development of the project, less
any and all net rents and other net revenues received from the operation of the real and
personal property on the project site during construction;
(g) "Development costs" means the costs approved by the authority as appropriate
expenditures which may be incurred prior to initial disbursement of mortgage loan proceeds, including, but not limited to: (1) Payments for options to purchase properties for
the proposed project, deposits on contracts of purchase or, with the prior approval of
the authority, payments for the purchase of such properties; (2) legal, organizational
and marketing expenses, including payment of attorneys' and consultants' fees, project
management and clerical staff salaries, office rent and other incidental expenses; (3)
payment of fees for preliminary feasibility studies and advances for planning, architectural and engineering work and land surveys and soil tests; (4) expenses of surveys as
to need and market analyses; (5) necessary application and other fees to federal, state
and local government agencies; and (6) such other expenses as the authority may deem
appropriate to effectuate the purposes of this chapter;
(h) "Low and moderate income families and persons" means families and persons
who lack the amount of income necessary as determined by the authority, to rent or
purchase safe and adequate housing without special financial assistance not reasonably
available. The income limits for the admission of such families and persons to housing
built or financed or assisted under this chapter shall be established by this authority;
(i) "Assisted mortgage financing" means a below market interest rate mortgage
insured or purchased, or a loan made, by the Secretary of the United States Department
of Housing and Urban Development; a market interest rate mortgage insured or purchased, or a loan made, in combination with, or as augmented by, a program of rent
supplements, interest subsidies or interest reduction payments, leasing, contributions
or grants, or other programs now or hereafter authorized by federal law to serve low
and moderate income families and persons; a mortgage loan made or insured pursuant
to this chapter; or any combination of such loans, mortgage insurance or other assistance;
(j) "Mortgage" means a mortgage deed, deed of trust, or other instrument which
shall constitute a lien, whether first or second, on real estate or on a leasehold under a
lease having a remaining term, at the time such mortgage is acquired, which does not
expire for at least that number of years beyond the maturity date of the obligation secured
by such mortgage as is equal to the number of years remaining until the maturity date
of such obligation. As used in this subsection, a lease of a lot in a mobile manufactured
home park which is indefinitely renewable pursuant to subsection (b) of section 21-70
shall satisfy the leasehold requirement, provided such lease is acceptable to a third party
mortgage insurer and the authority receives an acceptable mortgage insurance policy;
(k) "First mortgage" means such classes of first liens as are commonly given to
secure loans on, or the unpaid purchase price of, real estate under the laws of the state,
together with appropriate credit instruments;
(l) "Mortgagee" means the original lender under the mortgage or participants
therein, and their successors and assigns;
(m) "Mortgagor" or "eligible mortgagor" means (1) a nonprofit corporation incorporated pursuant to chapter 602 or any predecessor statutes thereto, having as one of
its purposes the construction, rehabilitation, ownership or operation of housing, and
having articles of incorporation approved by the authority in accordance with the provisions of this chapter; (2) any business corporation incorporated pursuant to chapter
601 or any predecessor statutes thereto, having as one of its purposes the construction,
rehabilitation, ownership or operation of housing, and having articles of incorporation
approved by the authority in accordance with the provisions of this chapter; (3) any
partnership, limited partnership, joint venture, trust or association having as one of its
purposes the construction, rehabilitation, ownership or operation of housing, and having
basic documents of organization approved by the authority in accordance with the provisions of this chapter; (4) a housing authority established pursuant to chapter 128; (5) a
family or person approved by the authority as qualified to own, construct, rehabilitate,
manage and maintain housing under a mortgage loan made or insured by the authority
under the provisions of this chapter; or (6) a municipal developer; and includes the
successors and assigns of the mortgagor;
(n) "Mortgage payments" means periodic payments called for by a mortgage, and
may include, but is not limited to, interest, installments of principal, taxes and assessments, mortgage insurance premiums and hazard insurance premiums;
(o) "Aggregate family income" means the total family income of all members of a
family, from whatever source derived, including but not limited to pension, annuity,
retirement and social security benefits, provided there may be excluded from income,
as the authority by regulation may determine, (1) reasonable allowances for dependents,
(2) reasonable allowances for medical expenses, (3) all or any proportionate part of the
earnings of gainfully employed minors or family members other than the chief wage
earner, (4) income not received regularly and (5) other expenses;
(p) "Earned surplus" shall have the same meaning as in generally accepted accounting standards;
(q) "Municipality" means any city, town or borough in the state;
(r) "Lending institution" means any bank, trust company, savings bank, savings
and loan association or credit union, whether chartered by the United States of America
or this state, and any insurance company authorized to do business in this state, and any
mortgage banking firm approved by the authority;
(s) "Tenant" means the occupant of any housing financed or assisted by the authority
under this chapter;
(t) "Second mortgage" means any class of second liens ranking immediately after
a first mortgage on the same property, without any intervening liens, as are commonly
given to secure loans on real estate, or the unpaid purchase price of real estate under
the laws of the state, together with appropriate credit instruments, provided such second
mortgage, unless granted pursuant to the exercise of powers granted to the authority
under the provisions of the general statutes, is insured by an agency of the federal government or by such other entity as the authority shall determine is financially able to insure
or guarantee repayment in the event of default by the mortgagor;
(u) "Person" means any person, including individuals, limited liability companies,
firms, partnerships, associations, public or private, organized or existing under the laws
of the state or, any other state if qualified to do business in the state;
(v) "Urban area" means any targeted area, as defined in Section 143 of the Internal
Revenue Code of 1986, or any subsequent corresponding internal revenue code of the
United States, as from time to time amended;
(w) "Urban area mortgage" means a mortgage securing a construction or a permanent loan to any person for the purpose of purchasing, refinancing, constructing or rehabilitating any residential building in an urban area, including related facilities, such
as commercial, offices, health, welfare, administration, recreational, community and
service facilities incidental and pertinent thereto as determined by the authority, but
need not be a first lien upon the mortgaged property;
(x) "Municipal developer" means a municipality, as defined in subsection (q) of
this section, which has not declared by resolution a need for a housing authority pursuant
to section 8-40, acting by and through its legislative body, except that in any town in
which a town meeting or representative town meeting is the legislative body, "municipal
developer" means the board of selectmen if such board is authorized to act as the municipal developer by the town meeting or representative town meeting;
(y) "Employer-assisted housing" means (1) housing that is, in whole or in part,
owned, acquired, developed or managed by employers, or on behalf of employers, for
the benefit of employees in the state or (2) assistance offered by employers to employees
in the purchase or lease of residential property in the state;
(z) "Department" means the Department of Economic and Community Development.
(1969, P.A. 795, S. 3; 1972, P.A. 208, S. 2; P.A. 74-104, S. 2-4, 12; P.A. 76-118, S. 2, 6; P.A. 87-436, S. 15, 23; P.A.
93-248, S. 3; P.A. 94-125, S. 2.; P.A. 95-79, S. 15, 189; 95-250, S. 8, 42; 95-309, S. 11, 12; P.A. 96-256, S. 178, 209; 96-271, S. 152, 254; P.A. 97-222.)
History: 1972 act redefined "housing", "related facilities", "low and moderate-income families and persons" and "mortgagor" and defined "'rents', `rentals' or `carrying charges'", "project cost", "development costs", "assisted mortgage
financing", "aggregate family income", "earned surplus", "municipality", "lending institution" and "tenant"; P.A. 74-104
redefined "housing" to specifically include existing dwelling units, redefined "mortgage" to include first and second liens
and to delete phrase "in fee simple" and defined "second mortgage"; P.A. 76-118 defined "person", "urban area" and
"urban area mortgage"; P.A. 87-436 redefined "mortgagor" or "eligible mortgagor" in Subdiv. (m) to include municipal
developers and added Subdiv. (x) defining "municipal developer"; P.A. 93-248 defined "employer-assisted housing"; P.A.
94-125 amended Subdiv. (j) by adding provision that a lease of a lot in a mobile manufactured home park which is
indefinitely renewable shall satisfy the leasehold requirement; P.A. 95-79 redefined "person" to include a limited liability
company, effective May 31, 1995; P.A. 95-250 redefined "second mortgage" by adding provision re second mortgages
granted pursuant to the authority of the general statutes and added definition of "department"; P.A. 95-309 changed effective
date of P.A. 95-250 but did not affect this section; P.A. 96-256 and P.A. 96-271 amended the definitions of "mortgagor"
or "eligible mortgagor" in Subdiv. (m) by replacing reference to "chapter 600" with "chapter 602 or any predecessor
statutes thereto" and "chapter 599" with "chapter 601 or any predecessor statutes thereto", respectively, effective January
1, 1997; P.A. 97-222 redefined "urban area" in Subdiv. (v) to mean any targeted area, as defined in Section 143 of the
Internal Revenue Code of 1986, as amended.