Sec. 8-303. Municipal powers for purposes of this chapter.
Sec. 8-303. Municipal powers for purposes of this chapter. In furtherance of
the purposes of this chapter, which are hereby deemed to be municipal purposes, for
which municipal funds may be expended, a municipality shall, in addition to those
powers otherwise conferred by any general statute, special act or municipal charter or
ordinance, have the following powers, except as otherwise limited by this chapter and
provided the exercise of such powers by the municipality shall be in accordance with
the procedures established by this chapter:
(a) To make loans to lending institutions under terms and conditions requiring the
proceeds thereof to be used by such institutions for the making of mortgage loans for
the purchase and for the rehabilitation of housing by low and moderate income families
and persons, subject to the provisions of section 8-305;
(b) To invest in, purchase, acquire and take from mortgagees assignments of notes
and mortgages evidencing loans for the purchase and for the rehabilitation of housing
by low and moderate income families and persons, subject to the provisions of section
8-305;
(c) To make and enter into agreements or other transactions with any state or federal
agency or instrumentality and to make and enter into all contracts and agreements,
including contracts or agreements with lending institutions for the servicing and processing of mortgages, necessary or incidental to the execution of its powers under this
chapter;
(d) To acquire, or contract to acquire, by purchase, grant, foreclosure or otherwise
and to use, hold and dispose of real or personal property, or interests therein, within the
municipality;
(e) To undertake commitments to make mortgage loans; to sell mortgages at public
or private sale, with or without bidding; to foreclose on any mortgage or commence any
action to protect or enforce any right conferred upon the municipality by law, mortgage,
contract or other agreement, and to bid for and purchase property which was the subject
of such mortgage, at any foreclosure or at any other sale; to release or relinquish any
right, title, claim, interest on demand, however acquired, including any equity or right
of redemption, in property foreclosed by it; to acquire and take possession of any such
property, and in such event to complete, administer, pay the principal and interest or
any obligation incurred in connection with such property, dispose of, and otherwise deal
with, such property in such manner as may be necessary or desirable to protect the
interests of the municipality therein;
(f) To issue bonds, bond anticipation notes and other obligations of the municipality
in order to exercise the powers and effectuate the purposes set forth in this chapter; to
fund and refund said obligations and to provide for the rights of the holders thereof; and
to secure the municipal obligations issued hereunder by the pledge of revenues and of
notes and mortgages of others;
(g) To appoint, employ or retain attorneys, accountants, architectural, engineering
and financial consultants, assistants, agents and other employees as it may deem necessary or desirable and to fix their compensation;
(h) To invest any funds not needed for immediate use or disbursement, including
any funds held in reserve, in obligations issued or guaranteed by the United States of
America or the state and in other obligations which are legal investments for savings
banks in this state and in time deposits or certificates of deposit or other similar banking
arrangements secured in such manner as the municipality determines;
(i) To procure insurance against any loss in connection with its property and other
assets, including mortgages and mortgage loans, in such amounts and from such insurers
as it deems desirable;
(j) To the extent permitted under its contract with the holders of bonds, notes and
other obligations of the municipality, to consent to any modification with respect to rate
of interest, time and payment of any installment of principal or interest, security or any
other term of any mortgage, mortgage loan, mortgage loan commitment, contract or
agreement of any kind to which the municipality is a party;
(k) To the extent permitted under its contract with the holders of bonds, notes and
other obligations, to enter into contracts with any mortgagor containing provisions enabling such mortgagor to reduce the rental or carrying charges to families or persons
unable to pay the regular schedule of charges where, by reason of other income or
payment from any department, agency or instrumentality of the United States of America
or this state, such reductions can be made without jeopardizing the economic stability
of housing being financed;
(l) Where by reason of the financing plan a review of the application for financing
the proposed housing is required by or in behalf of any department, agency or instrumentality of the United States of America or this state, to provide, contract or arrange for
consolidated processing of any such application to avoid duplication thereof by either
undertaking the processing in whole or in part for any such department, agency or instrumentality or, in the alternative, delegating the processing in whole or in part to any such
department, agency or instrumentality;
(m) To participate with any department, agency or instrumentality of the United
States or the state or with any lending institution in the making of mortgage loans to
low and moderate income families and persons, which mortgage loans are secured by
a single participation mortgage or by separate mortgages, the interest of each mortgagee
having equal priority as to lien in proportion to the amount of the loan so secured, but
not necessarily equal as to interest rate, time or rate of amortization or otherwise;
(n) To make loans which may or may not be secured by a mortgage on real property
for the rehabilitation of one to four family residential housing for occupancy by families
and persons of low and moderate income, in amounts not to exceed ten thousand dollars
in the case of each loan, on such terms and conditions as the municipality may determine,
provided any such loan which is not secured by a mortgage shall be insured or guaranteed
by a department, agency or instrumentality of the United States of America, or by such
other entity as the municipality shall determine is financially able to insure or guarantee
repayment in the event of default by the borrower, or coinsured to the maximum extent
permitted by a department, agency or instrumentality of the United States of America;
(o) To do any and all acts or things necessary or appropriate in order to effectuate
the purposes of this chapter or to exercise any of the powers granted to municipalities
by this chapter.
(P.A. 79-596, S. 4, 17.)