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General Assembly Raised Bill No. 805
January Session, 2019
LCO No. 3664
Referred to Committee on AGING
Introduced by:
(AGE)
AN ACT ESTABLISHING A REVOLVING LOAN FUND TO ASSIST
ELDERLY HOMEOWNERS.
Be it enacted by the Senate and House of Representatives in General
Assembly convened:
Section 1. (Effective October 1, 2019) (a) For purposes of this section, 1
"elderly homeowner" means any owner of real property liable for 2
property taxes under chapter 203 of the general statutes who (1) is 3
sixty-five years of age or older on the date of application for a loan 4
under this section, (2) has resided in the municipality levying such 5
property taxes for a period of not less than ten years before the date of 6
such application, and (3) has qualifying income in the tax year 7
immediately preceding the date of application for a loan under this 8
section that does not exceed the income limits set forth in section 12-9
170aa of the general statutes, as adjusted annually. 10
(b) There is established a revolving loan fund to be known as the 11
"Elderly Homeowner Property Tax Revolving Loan Fund" which shall 12
be a separate nonlapsing account within the General Fund. The fund 13
shall contain any moneys required by law to be deposited in the fund, 14
including, but not limited to, payments of principal and interest on 15 Raised Bill No. 805
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loans made from the fund. The fund shall be administered by the 16
Secretary of the Office of Policy and Management. Investment earnings 17
credited to the fund shall become part of the assets of the fund. Any 18
balance remaining in the fund at the end of any fiscal year shall be 19
carried forward in the fund for the fiscal year next succeeding. 20
Payments of principal or interest on a loan made pursuant to this 21
section shall be paid to the State Treasurer for deposit in the fund. The 22
fund shall be used to make loans at the prevailing rate of interest 23
pursuant to subsection (c) of this section, and to pay reasonable and 24
necessary expenses incurred by the secretary in administering loans 25
under this section. 26
(c) (1) Notwithstanding section 12-172 of the general statutes, the 27
state, acting through and in the discretion of the Secretary of the Office 28
of Policy and Management and within available appropriations, may 29
provide loans to elderly homeowners who apply, on a form prescribed 30
by the secretary, provided (A) the elderly homeowner has failed to pay 31
taxes levied against the elderly homeowner's property under chapter 32
203 of the general statutes for not less than the two assessment years 33
preceding the date of application for a loan under this section, (B) the 34
real property subject to tax is not otherwise encumbered, and (C) the 35
principal amount of such loan does not exceed the amount of taxes 36
levied against the real property. The secretary may impose asset limits 37
as a condition of eligibility for loans provided pursuant to this section. 38
(2) If the state provides a loan under this section, the Secretary of the 39
Office of Policy and Management shall have a lien on the real property 40
subject to taxes in the amount of such loan, plus interest at the 41
prevailing rate of interest. Such lien shall have priority over all other 42
liens on such real property except a municipal property tax lien. 43
(3) Any financial assistance provided under this section shall not 44
disqualify the elderly homeowner from receiving benefits for which 45
such elderly homeowner is eligible under the provisions of section 12-46
129b, 12-129c, 12-129n or 12-170aa of the general statutes. 47 Raised Bill No. 805
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(d) The Secretary of the Office of Policy and Management may 48
adopt regulations, in accordance with the provisions of chapter 54 of 49
the general statutes, to specify application procedures and priorities 50
for providing low-cost loans pursuant to this section. 51
This act shall take effect as follows and shall amend the following
sections:
Section 1 October 1, 2019 New section
Statement of Purpose:
To assist financially distressed elderly homeowners.
[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.]