Sec. 8-410. Low and Moderate Income Housing Predevelopment Cost Revolving Loan Fund. Interest-free loans for predevelopment costs.
Sec. 8-410. Low and Moderate Income Housing Predevelopment Cost Revolving Loan Fund. Interest-free loans for predevelopment costs. (a) There is established
a fund to be known as the "Low and Moderate Income Housing Predevelopment Cost
Revolving Loan Fund". The fund shall contain any moneys required by law to be deposited in the fund. Any balance remaining in the fund at the end of any fiscal year shall
be carried forward in the fund for the fiscal year next succeeding. The fund shall be
used to make loans pursuant to subsection (b) of this section and to pay reasonable and
necessary expenses incurred in administering loans under this section. The Commissioner of Economic and Community Development may enter into a contract with a
nonprofit corporation to provide for the administration of the Low and Moderate Income
Housing Predevelopment Cost Revolving Loan Fund by such nonprofit corporation,
provided no loan shall be made from the fund without the authorization of the commissioner as provided in subsection (b) of this section.
(b) The state, acting by and in the discretion of the Commissioner of Economic and
Community Development, may enter into a contract to provide financial assistance
in the form of interest-free loans or deferred loans to nonprofit corporations, housing
authorities or municipal developers, or to partnerships which include a nonprofit corporation, housing authority or municipal developer, for predevelopment costs incurred in
connection with the construction, rehabilitation or renovation of housing for low and
moderate income persons and families. Such predevelopment costs may include: (1)
Feasibility studies, (2) expenses incurred in project planning and design, including architectural expenses, (3) legal and financial expenses, (4) expenses incurred in obtaining
required permits and approvals, (5) options to purchase land, (6) expenses incurred
in obtaining required insurance and (7) other preliminary expenses authorized by the
commissioner. Repayment of such loans or deferred loans shall be made upon receipt
of permanent financing by the borrower, except the commissioner may forgive any such
loan or deferred loan in any case where the borrower has made a good faith effort to obtain
permanent financing and has been refused such financing and where the forgiveness of
such loan is in the best interest of the state. Payments of principal on such loans or
deferred loans shall be paid to the Treasurer for deposit in the Housing Repayment and
Revolving Loan Fund. 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.
(P.A. 88-268, S. 1, 6; P.A. 90-238, S. 25, 32; P.A. 92-166, S. 26, 31; P.A. 94-95, S. 13; P.A. 95-250, S. 1; P.A. 96-211,
S. 1, 5, 6.)
History: P.A. 90-238 revised provisions re allocation of moneys to various housing funds; P.A. 92-166 amended Subsec.
(b) to make deferred loans a form of financial assistance available under the section and to further provide that payments
on interest are due immediately but that payments on principal may be made at a later time; P.A. 94-95 in Subsec. (a)
eliminated provisions requiring the fund to be held separate and apart from all other moneys, funds and accounts and that
investment earnings be credited to assets of the fund; P.A. 95-250 and P.A. 96-211 replaced Commissioner and Department
of Housing with Commissioner and Department of Economic and Community Development.