§ 8-265hh — Repayment agreement.

Connecticut § 8-265hh

• Jurisdiction: Connecticut
• Title 8: Zoning, Planning, Housing and Economic and Community Development
• Ch. 134: Connecticut Housing Finance Authority Act

Text

(a) Upon approval of emergency mortgage or lien assistance payments, the authority shall enter into an agreement with the homeowner for repayment of all such assistance with any interest as provided in this section. The agreement shall provide for repayment by the homeowner after emergency mortgage or lien assistance payments have ended and shall be subject to the following provisions: (1) Repayment of the emergency mortgage or lien assistance payments shall be deferred until the homeowner (A) transfers title to the homeowner's residential real property, other than a transfer to another mortgagor under the same mortgage pursuant to a dissolution of marriage or by devise, descent or operation of law upon the death of a homeowner, (B) ceases to occupy the residential real property as a principal dwelling, or (C) obtains new mortgage loan financing, other than home improvement mortgage loan financing for repairs necessary to preserve the residential real property, which increases the amount of mortgage debt to an amount that is more than the amount of mortgage debt that encumbered the residential real property at the time when emergency mortgage or lien assistance payments were initially approved under section 8-265ff ; and (2) (A) The authority may, at the discretion of the authority, elect to enter into an agreement with the homeowner to provide that (i) interest on emergency mortgage and lien assistance payments made by the authority shall be payable from time to time or accrue, and (ii) if such interest accrues, such interest will compound periodically or accrue as simple interest. (B) For any such interest that accrues, (i) the rate of accrual shall be established by the authority in accordance with the authority's procedures, and (ii) such interest shall start to accrue at the end of the sixty-month period established under subsection (a) of section 8-265gg during which one or more emergency mortgage assistance payments were provided. (b) Repayment of amounts owed to the authority from a homeowner under the provisions of sections 8-265cc to 8-265kk , inclusive, shall be secured by a mortgage on the homeowner'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 homeowner to obtain a home improvement loan for repairs necessary to preserve the property. (c) The authority may, at the discretion of the authority, waive any right of the authority to conduct periodic review of the homeowner's financial circumstances to determine the amounts of repayment required under this section. (d) All moneys received by the authority from homeowners for repayment of emergency mortgage or lien 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 homeowner who misrepresents any financial or other pertinent information in conjunction with the filing of an application for emergency mortgage or lien assistance or modification of such assistance, may, at the discretion of the authority, be denied assistance and required to immediately repay, either in a lump sum or in installments, any amount of assistance already made together with interest at the maximum per annum rate allowed under section 37-4 . The mortgagee or lienholder may, at any time thereafter, take any legal action to enforce the mortgage or lien without further restrictions or requirements. (f) The authority may take any action it deems appropriate to recover emergency mortgage or lien assistance when the homeowner fails to repay such assistance under the terms and conditions established under this section.

Legislative History

(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; P.A. 09-209, S. 33; 09-219, S. 1; P.A. 21-44, S. 12; P.A. 22-94, S. 17; P.A. 24-66, S. 4.) 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; P.A. 09-209 amended Subsec. (a) by deleting former Subdiv. (1), redesignating existing Subdivs. (2) to (4) as Subdivs. (1) to (3) and adding “including projected repayments for mortgage assistance under this section” in redesignated Subdiv. (1); P.A. 09-219 changed effective date of P.A. 09-209, S. 33, from October 1, 2009, to July 9, 2009, and applicable to applications for emergency mortgage assistance filed on and after July 1, 2008, effective July 9, 2009; P.A. 21-44 replaced references to mortgagor with homeowner in Subsecs. (a) to (f), added references to lien assistance throughout and made technical and conforming changes; P.A. 22-94 made a technical change in Subsec. (a); P.A. 24-66 amended Subsec. (a) to insert “any” before “interest” and to replace “monthly payments” with “repayment”, amended Subsec. (a)(1) to remove provisions re deferring repayment until homeowner's total housing expense is less than or equal to 35 per cent of aggregate family income, add Subparas. (A) to (C) re deferral of repayment until homeowner transfers title, ceases to occupy the property or obtains new financing and make a technical change, deleted former Subsec. (a)(2) re repayment not made by date mortgage is paid in full, deleted former Subsec. (a)(3) re interest accruing at rate based upon cost of funds to state, inserted new Subsec. (a)(2) re authority electing to enter into agreement with homeowner and accrual of any interest on payments made by authority, amended Subsec. (c) to replace “shall establish written procedures for” with “may, at the discretion of the authority, waive any right of the authority to conduct” and amended Subsec. (e) to add provisions re authority having discretion re denying assistance and requiring repayment, repayment being in lump sum or installments and payment of interest at maximum rate allowed under Sec. 37-4.