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House Bill No. 5329

PUBLIC ACT NO. 96-69

AN ACT CONCERNING REPAYMENTS OF LOANS MADE UNDER THE PRIVATE RENTAL INVESTMENT MORTGAGE AND EQUITY PROGRAM.

Be it enacted by the Senate and House of Representatives in General Assembly convened:

Section 1. Section 8-403 of the general statutes, as amended by sections 1 and 35 of public act 95-250 and sections 8 and 11 of public act 95-309, is repealed and the following is substituted in lieu thereof:

Upon preliminary approval by the State Bond Commission pursuant to the provisions of section 3-20, the state, acting by and through the Department of Economic and Community Development may enter into a contract with the authority to provide state financial assistance to a mortgagor of the authority in the form of a loan secured by a second mortgage for any housing project for which the authority has provided financial assistance in the form of a loan secured by a first mortgage; provided any such financial assistance to be funded with proceeds of bonds authorized by public or special acts effective on or after July 1, 1995, shall be provided as follows: Commencing October 1, 1995, upon preliminary approval of the State Bond Commission pursuant to the provisions of section 3-20, the state, acting by and through the Department of Economic and Community Development may provide a grant-in-aid to the authority, for purposes of permitting the authority to extend state financial assistance to the developer or mortgagor of the authority in the form of a loan secured by a second mortgage for any housing project for which the authority has provided financial assistance in the form of a loan secured by a first mortgage. Such loan shall be made for the purpose of providing additional financing for the project. Any loan made under this section shall bear interest payable quarterly on the first days of January, April, July and October for the preceding calendar quarter, or at such other times as are determined by the authority at a rate determined by the State Bond Commission under subsection (t) of section 3-20 and shall be repayable in such installments as may be determined by the commissioner or the authority, as the case may be, within fifty years from the date of completion of the project. LOAN REPAYMENTS SHALL BE PAID TO THE STATE TREASURER AND DEPOSITED IN THE GENERAL FUND.

Sec. 2. Section 8-401 of the general statutes, as amended by sections 1 and 33 of public act 95-250 and sections 6 and 11 of public act 95-309, is repealed and the following is substituted in lieu thereof:

Upon preliminary approval by the State Bond Commission pursuant to the provisions of section 3-20, the state, acting by and through the Commissioner of Economic and Community Development, may enter into a contract with the authority, to provide for state financial assistance in the form of grants-in-aid or deferred loans to housing projects financed by the authority through the means of a loan secured by a first mortgage; provided, any such financial assistance to be funded with proceeds of bonds authorized by public or special acts effective on or after July 1, 1995, shall be provided as set forth in this section. Commencing October 1, 1995, upon preliminary approval of the State Bond Commission pursuant to the provisions of section 3-20, the state, acting by and through the department may provide a grant-in-aid to the authority for purposes of permitting the authority to extend state financial assistance to a developer or mortgagor of the authority in the form of grants-in-aid or deferred loans to housing projects financed by the authority through means of a loan secured by a first mortgage. Such grants or deferred loans made to a developer under this section shall be for construction or rehabilitation of developments containing rental units. The total amount of such grants or deferred loans awarded to a single project shall not exceed an amount equal to one-half of the cost of the project divided by the number of rental units in the project multiplied by the number of low-income units in the project. The total number of low-income units in any project receiving financial assistance under this section shall be not less than twenty per cent and, for projects receiving assistance prior to October 1, 1995, and for projects receiving assistance from the proceeds of bonds authorized by public or special acts effective prior to July 1, 1995, shall not be more than forty per cent of the total number of rental units in the project. No project receiving financial assistance under this section shall contain less than twenty-five rental units. Any grant or deferred loan awarded under this section shall be used to reduce the cost of the project. LOAN REPAYMENTS SHALL BE PAID TO THE STATE TREASURER AND DEPOSITED IN THE GENERAL FUND.

Approved May 7, 1996. Effective October 1, 1996.

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