Connecticut 2011 Regular Session

Connecticut House Bill HB06467 Compare Versions

Version 1 (Old)

Version 2 (New)

Old	New		Differences
1	1		General Assembly Raised Bill No. 6467
2	2		January Session, 2011 LCO No. 3641
3		-	_____~~HB06467HSG~~__~~_031011____~~
	3	+	03641_______HSG
4	4		Referred to Committee on Housing
5	5		Introduced by:
6	6		(HSG)
7	7
8	8		General Assembly
9	9
10	10		Raised Bill No. 6467
11	11
12	12		January Session, 2011
13	13
14	14		LCO No. 3641
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16		-	_____~~HB06467HSG~~__~~_031011____~~
	16	+	03641_______HSG
17	17
18	18		Referred to Committee on Housing
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20	20		Introduced by:
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22	22		(HSG)
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24	24		AN ACT CONCERNING AN EXPANSION OF THE CONNECTICUT HOUSING FINANCE AUTHORITY'S HOMEOWNER'S EQUITY RECOVERY OPPORTUNITY LOAN PROGRAM.
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26	26		Be it enacted by the Senate and House of Representatives in General Assembly convened:
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28	28		Section 1. Section 8-265ss of the general statutes is repealed and the following is substituted in lieu thereof (Effective October 1, 2011):
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30	30		(a) As used in this section:
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32	32		(1) "Authority" means the Connecticut Housing Finance Authority created under section 8-244;
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34	34		(2) "Mortgage" means a mortgage deed or other instrument [which] that constitutes a first or second consensual lien on one-to-four family [owner-occupied] residential real property located in this state, including, but not limited to, a single-family unit in a common interest community, securing a loan made primarily for personal, family or household purposes;
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36	36		(3) "Borrower" means (A) the owner-occupant of a one-to-four family residential real property located in this state, including, but not limited to, a single-family unit in a common interest community, who has a mortgage encumbering such real property, or (B) the owner of a one-to-four family residential real property, including, but not limited to, a single-family unit in a common interest community, who has a mortgage encumbering such real property and is rehabilitating or renovating such real property with the intention of selling such property to an owner-occupant;
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38	38		(4) "Lender" means the original lender under a mortgage, or its agents, successors or assigns; and
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40	40		(5) "HERO program" means the Homeowner's Equity Recovery Opportunity loan program.
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42	42		(b) The authority is authorized to develop and implement the HERO program as an additional purpose pursuant to the provisions of subdivision (32) of section 8-250. The HERO program shall be undertaken by the authority consistent with and subject to its contractual obligations with its bondholders in an initial amount of thirty million dollars.
43	43
44	44		(c) On and after July 1, 2008, the authority shall implement the HERO program in accordance with this section. Said program shall offer, within available funds, financing through the following mechanism: The authority shall purchase mortgages directly from lenders and then place borrowers it determines to be eligible on an affordable repayment plan or make mortgage loans to borrowers who it determines to be eligible and who purchase foreclosed or abandoned properties, [or] properties conveyed by deed in lieu of foreclosure or short sale, or vacant or blighted properties. All borrowers approved by the authority for the program shall attend in-person financial counseling at an authority-approved agency.
45	45
46	46		(d) A HERO loan shall: (1) Be a mortgage for up to thirty years in an amount determined by the authority; (2) provide an interest rate at an amount determined by the authority; (3) be serviced by the authority or its agents; and (4) have property taxes and insurance, including mortgage insurance, homeowner's insurance and, if applicable, flood insurance, included in the borrower's monthly payment amount.
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48	48		(e) For purposes of the HERO program, the authority shall purchase mortgages directly from lenders and make a HERO loan available to borrowers whose mortgages have been purchased by the authority and who have been determined by the authority to be eligible. A borrower shall be eligible if the HERO loan is in the first lien position, and if, in the authority's determination, the borrower has: (1) Made an effort to meet his or her financial obligations to the best of the borrower's ability; (2) sufficient and stable income to support timely repayment of a HERO loan; (3) legal title to the mortgaged property and resides in it as the borrower's permanent residence; and (4) if the borrower has stopped making monthly payments, the ability to account for the borrower's cash flow by showing how those funds were escrowed, saved or redirected. The authority shall make a determination of eligibility for the HERO program no later than thirty calendar days after the date of receipt of the borrower's application.
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50	50		(f) The borrower shall apply for a HERO loan on the form provided by the authority. The borrower shall complete and sign the application subject to the penalty for false statement under section 53a-157b. Any borrower who misrepresents any financial or other pertinent information in conjunction with the filing of an application for a HERO loan may be denied assistance. The borrower shall provide the authority with full disclosure of all assets and liabilities, whether singly or jointly held, and all household income regardless of source. For purposes of this subsection, both of the following are included as assets:
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52	52		(1) The sum of the household's savings and checking accounts, market value of stocks, bonds and other securities, other capital investments, pensions and retirement funds, personal property and equity in real property including the subject mortgage property. Income derived from family assets shall be considered as income. Equity is the difference between the market value of the property and the total outstanding principal of any loans secured by the property and other liens.
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54	54		(2) Lump-sum additions to family assets such as inheritances, capital gains, insurance payments included under health, accident, hazard or worker's compensation policies and settlements, verdicts or awards for personal or property losses or transfer of assets without consideration within one year of the time of application. Pending claims for such items must be identified by the borrower as contingent assets.
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56	56		(g) On or before July 1, 2008, the authority shall adopt procedures in accordance with section 1-121 to implement the provisions of this section.
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61	61		This act shall take effect as follows and shall amend the following sections:
62	62		Section 1 October 1, 2011 8-265ss
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64	64		This act shall take effect as follows and shall amend the following sections:
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66	66		Section 1
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68	68		October 1, 2011
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70	70		8-265ss
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	72	+	Statement of Purpose:
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	74	+	To expand the Homeowner's Equity Recovery Opportunity loan program to include (1) developers who are rehabilitating or renovating homes that will be sold to owner-occupants as eligible borrowers, and (2) vacant or blighted properties as eligible properties.
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74		-	HSG Joint Favorable
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76		-	HSG
77		-
78		-	Joint Favorable
	76	+	[Proposed deletions are enclosed in brackets. Proposed additions are indicated by underline, except that when the entire text of a bill or resolution or a section of a bill or resolution is new, it is not underlined.]