An Act Establishing A Surcharge On Mortgage Origination To Expand Funding For Crumbling Concrete Foundations.
Impact
The bill aims to enhance funding for initiatives aimed at repairing and addressing the challenges posed by crumbling concrete foundations, a significant concern for many homeowners in Connecticut. By instituting this surcharge, the legislation is set to provide a financial mechanism that supports remediation efforts, potentially improving property values and ensuring safety for residents impacted by this serious infrastructure issue. This approach demonstrates the state's commitment to confronting structural challenges head-on through direct financial support.
Summary
House Bill 6594 proposes the establishment of a surcharge on mortgage origination fees in Connecticut. Specifically, it mandates that banks and mortgage lenders will pay a surcharge of one hundred dollars for each residential mortgage loan originated for properties within the state, lasting from July 1, 2019, to July 1, 2029. The revenue generated from this surcharge is intended to support the Connecticut Foundation Solutions Indemnity Company, LLC, which addresses the issue of crumbling concrete foundations affecting certain residential properties in the state.
Contention
Although the bill has a clear objective of addressing a pressing problem, there may still be points of contention among various stakeholders. Some might argue against the imposition of a surcharge on mortgage origination, as it adds an additional cost to lenders, which could indirectly affect borrowers. While the bill stipulates that the surcharge should not be passed down to consumers, concerns remain over how this could influence the housing market and lending practices in Connecticut. Overall, the balance between effective funding for remediation and the economic impact on lending and housing affordability will likely be at the center of discussions surrounding this bill.
An Act Increasing The Highest Marginal Rate Of The Personal Income Tax And Establishing A Capital Gains Surcharge To Provide Funding For Certain Child-related, Municipal And Higher Education Initiatives.