2005 Connecticut Code - Sec. 8-433. Contracts for financial assistance.

      Sec. 8-433. Contracts for financial assistance. (a) In the case of financial assistance provided from the proceeds of the state's bonds upon preliminary approval by the State Bond Commission pursuant to the provisions of section 3-20, or, in the case of financial assistance provided from a funding source other than the state's bonds upon the approval by the Governor of an allotment for such purpose, the state, acting by and in the discretion of the commissioner, may enter into a contract with an eligible developer, for or with respect to eligible costs, for state financial assistance in the form of grants, loans, deferred loans, guarantees, interest subsidies or combinations thereof. Within available appropriations, and in accordance with regulations adopted pursuant to section 8-437, the state, acting by and in the discretion of the commissioner, may enter into a contract to provide financial assistance in the form of rental supplements and service supplements for any housing development that receives financial assistance pursuant to this section.

      (b) In the case of financial assistance provided from the proceeds of the state's bonds, upon preliminary approval by the State Bond Commission pursuant to the provisions of section 3-20, or, in the case of financial assistance provided from a funding source other than the state's bonds, upon the approval by the Governor of an allotment for such purpose, the state, acting by and in the discretion of the commissioner, may enter into a contract with an eligible developer, for or with respect to eligible costs, for state financial assistance in the form of grants, loans, deferred loans, guarantees, interest subsidies or combinations thereof, to be used by such eligible developer to administer a program of financial assistance to eligible developers. Such program of financial assistance may include grants, loans, deferred loans, guarantees, interest subsidies, or combinations thereof, as determined by the commissioner.

      (c) The commissioner may enter into a contract with an eligible developer to administer financial assistance provided pursuant to subsection (a) of this section.

      (d) Notwithstanding the provisions of sections 8-430 to 8-438, inclusive, the commissioner may approve the inclusion of market-rate housing units in any housing development that receives financial assistance pursuant to this section, except that the commissioner may provide financial assistance with respect to the estimated cost of any market-rate housing units approved for inclusion in such a housing development, other than market-rate units used to generate recurring income to subsidize units for households of very low income, only upon determining that the terms and conditions established pursuant to section 8-436 that apply to such financial assistance for market-rate units will reimburse the state for the costs to the state of such financial assistance, as estimated by the commissioner in accordance with regulations adopted pursuant to section 8-437.

      (e) In the case of moneys to be employed from the proceeds of the state's bonds, upon preliminary approval by the State Bond Commission pursuant to the provisions of section 3-20, or in the case of moneys to be employed from a funding source other than the state's bonds, upon the approval by the Governor of an allotment for such purpose, the commissioner may enter into a contract to purchase a mortgage or other lien on a housing development that receives financial assistance pursuant to this section; provided the commissioner determines such purchase to be in the best interest of the state and consistent with the state's programmatic intent.

      (P.A. 93-309, S. 4, 29.)

      History: P.A. 93-309 effective July 1, 1993.