Sec. 8-402. Rental subsidy certificates.
Sec. 8-402. Rental subsidy certificates. The state, acting by and through the Department of Economic and Community Development may enter into a contract with the
authority, developer, or mortgagor of the authority and the authority may enter into a
contract with a developer or mortgagor of the authority to provide state financial assistance in the form of rental subsidy certificates for each low-income unit in the project.
Any commitment to provide such subsidy shall be an obligation of the state or the
authority, as the case may be, for a period of not less than fifteen years, and the amount
of such subsidy shall be equal to the difference between the amount of rent plus an
allowance for heat and utilities not included in the rent approved by the commissioner
or the authority, as the case may be, and thirty per cent of the annual aggregate family
income of the tenant residing in the low-income unit for each such unit on an annual
basis. The rent charged for a low-income unit may not be increased without the approval
of the commissioner or the authority, as the case may be. The annual aggregate family
income of a tenant for the year prior to the occupancy of a low-income unit by the tenant
shall not exceed fifty per cent of the area median income, adjusted for family size, as
determined by the commissioner or the authority, as the case may be. If such annual
aggregate family income after occupancy exceeds seventy per cent of the area median
income, adjusted for family size, the unit occupied by the tenant will no longer be
considered a low-income unit and the next available unit will be rented to a tenant with
an aggregate family income of less than fifty per cent of the area median income, adjusted
for family size. No tenant residing in a project will receive financial assistance through
a rental subsidy certificate under this section if the aggregate family income of the
tenant in the prior year exceeds sixty per cent of the area median income, adjusted for
family size.
(P.A. 88-261, S. 3, 8; P.A. 95-250, S. 34, 42; 95-309, S. 11, 12.)
History: P.A. 95-250 substituted "Commissioner of Economic and Community Development" for "Commissioner of
Housing" and authorized authority to enter into contracts with developers or mortgagors; P.A. 95-309 changed effective
date of P.A. 95-250 but did not affect this section.