Sec. 8-265hh. Repayment agreement.
Sec. 8-265hh. Repayment agreement. (a) Upon approval of emergency mortgage
assistance payments, the authority shall enter into an agreement with the mortgagor for
repayment of all such assistance with interest as provided in this section. The agreement
shall provide for monthly payments by the mortgagor after emergency mortgage assistance payments have ended and shall be subject to the following provisions:
(1) If the mortgagor's total housing expense is less than or equal to thirty-five per
cent of the mortgagor's aggregate family income, the mortgagor shall pay to the authority
the difference between thirty-five per cent of such aggregate family income and such
total housing expense, unless otherwise determined by the authority after examining
the mortgagor's financial circumstances and ability to repay the emergency mortgage
assistance payments;
(2) If the mortgagor's total housing expense is greater than thirty-five per cent of the
mortgagor's aggregate family income, repayment of the emergency mortgage assistance
payments shall be deferred until such total housing expense is less than or equal to thirty-five per cent of such aggregate family income;
(3) If repayment of emergency mortgage assistance payments is not made by the
date the mortgage is paid in full, the mortgagor shall make monthly payments to the
authority in an amount not less than the monthly mortgage payment until such assistance
is repaid;
(4) Interest shall accrue on all emergency mortgage assistance payments made by
the authority at a rate based upon the cost of funds to the state periodically determined
by the State Treasurer in consultation with the authority. Interest shall start to accrue
whenever the mortgagor is required to commence repayment under this section.
(b) Repayment of amounts owed to the authority from a mortgagor under the provisions of sections 8-265cc to 8-265kk, inclusive, shall be secured by a mortgage on the
mortgagor's real property, provided said mortgage shall not be deemed to take priority
over any other mortgage or lien in effect against such property on the date the emergency
mortgage is recorded. The authority may allow subordination of its mortgage if such
subordination is required to permit the mortgagor to obtain a home improvement loan
for repairs necessary to preserve the property.
(c) The authority shall establish written procedures for periodic review of the mortgagor's financial circumstances to determine the amounts of repayment required under
this section.
(d) All moneys received by the authority from mortgagors for repayment of emergency mortgage assistance payments shall be paid to the authority, deposited in such
funds or accounts as the authority may establish from time to time for such purpose and
be used solely for the purposes of the program established pursuant to sections 8-265cc
to 8-265kk, inclusive.
(e) Any mortgagor who misrepresents any financial or other pertinent information
in conjunction with the filing of an application for emergency mortgage assistance or
modification of such assistance, may be denied assistance and required to immediately
repay any amount of assistance already made. The mortgagee may, at any time thereafter,
take any legal action to enforce the mortgage without further restrictions or requirements.
(f) The authority may take any action it deems appropriate to recover emergency
mortgage assistance when the mortgagor fails to repay such assistance under the terms
and conditions established under this section.
(P.A. 93-414, S. 6, 10; P.A. 94-185, S. 6, 10; P.A. 99-241, S. 6, 66; P.A. 08-176, S. 10.)
History: P.A. 93-414 effective July 1, 1993; P.A. 94-185 made technical changes, effective June 2, 1994; P.A. 99-241
amended Subsec. (d) to provide that repayments received by the authority be deposited in the General Fund, effective July
1, 1999; P.A. 08-176 amended Subsec. (d) to replace requirement that moneys received be paid to State Treasurer and
deposited in General Fund with requirement that moneys be used solely for purposes of program established pursuant to
Secs. 8-265cc to 8-265kk, effective July 1, 2008.