2005 Connecticut Code - Sec. 8-436. Terms and conditions of financial assistance. Transfer of housing development to eligible developer.

      Sec. 8-436. Terms and conditions of financial assistance. Transfer of housing development to eligible developer. (a) Financial assistance provided pursuant to section 8-433 shall be upon any such terms and conditions not inconsistent with the provisions of sections 8-430 to 8-438, inclusive, as the commissioner shall establish as prudent and necessary to protect the state's programmatic intent and financial interests. Such terms and conditions may include, separately or in combination, without limitation: The requirement of funds from other sources, including, without limitation, financing obtained from the Connecticut Housing Finance Authority or other quasi-public agencies as defined in section 1-120; participation interests; subsidy recapture provisions; and resale and prepayment, carrying charge and rental restrictions, but shall not include restrictions upon the annual household income of residents of limited equity cooperative units after initial occupancy. The commissioner shall not require limited equity cooperatives to establish (1) income tests for eligibility for continued occupancy or (2) carrying charges based on the income of residing cooperative members. The commissioner may require limited equity cooperatives to submit reports listing anonymously and certifying the income of its residents. The commissioner may establish terms and conditions allowing residents occupying units in developments that receive financial assistance pursuant to section 8-433 to continue to occupy such units regardless of an increase in such residents' annual household income. In establishing such terms and conditions the commissioner shall consider the availability of financing obtained from the Connecticut Housing Finance Authority or other quasi-public agencies defined in section 1-120. Such terms and conditions and compliance with such terms and conditions may be documented and secured as the commissioner shall determine. The commissioner may permit the priority of any lien or encumbrance taken by the department in connection with any such term or condition to be other than a lien or encumbrance of first priority. Any request for approval by the State Bond Commission for financial assistance pursuant to section 8-433, or any request for approval by the Governor of an allotment for financial assistance pursuant to section 8-433, as the case may be, shall include a description of the terms and conditions and manner of documenting and securing such terms and conditions proposed by the commissioner with respect to such financial assistance in accordance with regulations adopted pursuant to section 8-437, including, without limitation, the proposed duration of such terms and conditions. No term or condition provided for pursuant to this section, or interest, lien or encumbrance created by or securing such term or condition, shall be subject to any statutory or common-law rule against perpetuities or rule against unreasonable restraints on alienation.

      (b) Following initial approval by the State Bond Commission of financial assistance pursuant to section 8-433, or the initial approval by the Governor of an allotment for financial assistance pursuant to section 8-433, as the case may be, the commissioner may, in accordance with regulations adopted pursuant to section 8-437, waive, release or amend any term or condition imposed with respect to a housing development pursuant to this section and any lien or encumbrance taken by the department with respect to such term or condition, upon approval of the State Bond Commission, and upon a determination by the commissioner that all provisions of sections 8-430 to 8-438, inclusive, will continue to be met following such waiver, release or amendment, and that such waiver, release or amendment is in the best interest of the state and is consistent with the state's programmatic intent. If such waiver, release or amendment will result in units of a housing development ceasing to qualify as assisted housing, the commissioner may only grant or approve such waiver, release or amendment upon determining that: (1) Based on objective data, there is available in the area of the housing development for which such waiver, release or amendment is sought an adequate supply of habitable housing for the full range of very low, low and moderate income persons; or (2) the eligible developer requesting such waiver, release or amendment has agreed to replace the units ceasing to qualify as assisted housing with comparable units, as determined by the commissioner, and identified to the satisfaction of the commissioner a suitable available site and sources of financing other than state financial assistance for such comparable replacement units; or (3) the department (A) will recover sufficient funds from such waiver, release or amendment, whether through a participation interest, operation of a subsidy recapture provision, or otherwise, to provide financial assistance to an eligible developer covering the full cost of comparable replacement units, as determined by the commissioner, and (B) has identified such an eligible developer and a suitable available site for such comparable replacement units.

      (c) The commissioner may, in accordance with regulations adopted pursuant to section 8-437, approve the transfer of any housing development that receives financial assistance pursuant to section 8-433, or of any units in any such housing development, to one or more eligible developers upon approval of the State Bond Commission and upon a determination by the commissioner that all provisions of sections 8-430 to 8-438, inclusive, will continue to be met following such transfer, and that such transfer is in the state's best interest and is consistent with the state's programmatic intent. The commissioner may approve the conversion of units in a housing development that receives or has received financial assistance pursuant to section 8-433 from one type of unit eligible to receive such financial assistance to another type of unit so eligible upon approval of the State Bond Commission and upon a determination by the commissioner that all provisions to sections 8-430 to 8-438, inclusive, will continue to be met following such conversion, and that such conversion is in the state's best interest and is consistent with the state's programmatic intent.

      (P.A. 93-309, S. 7, 29; May 25 Sp. Sess. P.A. 94-1, S. 14, 130.)

      History: P.A. 93-309 effective July 1, 1993; May 25 Sp. Sess. P.A. 94-1 amended Subsec. (d) by making technical change, effective July 1, 1994.