LCO No. 4878 1 of 2
General Assembly Raised Bill No. 1363
January Session, 2025
LCO No. 4878
Referred to Committee on HOUSING
Introduced by:
(HSG)
AN ACT ESTABLISHING A PILOT PROGRAM FOR CERTAIN
MORTGAGE BORROWERS WITH STUDENT LOAN DEBT.
Be it enacted by the Senate and House of Representatives in General
Assembly convened:
Section 1. (NEW) (Effective July 1, 2025) (a) The Connecticut Housing 1
Finance Authority shall, as part of the homeownership loan program 2
established pursuant to section 8-286 of the general statutes, and within 3
the resources allocated by the State Bond Commission to the 4
Department of Housing for the purposes of said program, develop and 5
administer a pilot program for certain mortgage borrowers with unpaid 6
student loan debt. Such program shall authorize the authority to 7
provide a rate reduction to eligible mortgage holders in the amount of 8
1.125 per cent. 9
(b) The Connecticut Housing Finance Authority shall establish 10
guidelines for the program established pursuant to subsection (a) of this 11
section in the written procedures adopted under section 1-21 of the 12
general statutes. Such guidelines shall include the eligibility 13
requirements for program participants and other guidelines as deemed 14
necessary by the authority. 15
Raised Bill No. 1363
LCO No. 4878 2 of 2
(c) To be eligible for the program, a borrower shall: 16
(1) Be a first-time homebuyer or have not owned a home in the past 17
three years unless purchasing in a targeted area, as defined in Section 18
143 of the Internal Revenue Code of 1986, or any subsequent 19
corresponding internal revenue code of the United States, as amended 20
from time to time, who does not own other real property; 21
(2) Meet the income guidelines as established by the authority's 22
income limits based on household size and have a gross income at or 23
below one hundred per cent of the area median income; 24
(3) Have a combined student loan debt with at least a fifteen thousand 25
dollar unpaid principal balance, provided such loan is in good standing 26
with no past due amounts and may be in repayment or deferment 27
status; and 28
(4) Meet other eligibility requirements as deemed necessary by the 29
authority. 30
This act shall take effect as follows and shall amend the following
sections:
Section 1 July 1, 2025 New section
Statement of Purpose:
To establish a program, administered by the Connecticut Housing
Finance Authority, to permit certain eligible borrowers to receive a
reduction of their mortgage interest rate.
[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.]