Connecticut HB 5314: AN ACT CONCERNING THE "HOMES FOR CT" LOAN PROGRAM.

Bill Text

LCO 1900 1 of 2

General Assembly Raised Bill No. 5314
February Session, 2026 LCO No. 1900

Referred to Committee on BANKING

Introduced by:
(BA)

AN ACT CONCERNING THE "HOMES FOR CT" LOAN PROGRAM.
Be it enacted by the Senate and House of Representatives in General
Assembly convened:

Section 1. Subdivision (2) of section 8-265ccc of the 2026 supplement 1
to the general statutes is repealed and the following is substituted in lieu 2
thereof (Effective July 1, 2026): 3
(2) The loan shall (A) be secured by a mortgage deed on the eligible 4
borrower's residential buildings and all related improvements under 5
development by the eligible borrower, (B) be made in accordance with 6
the eligible financial institution's underwriting policy and standards, 7
except that the loan may have a loan-to-value ratio in excess of typical 8
underwriting standards, and (C) bear interest at a rate that does not 9
exceed the [applicable] prime rate [of the Federal Home Loan Bank of 10
Boston for short-term or long-term advances through the New England 11
Fund program. For the purposes of this subdivision, "applicable rate" 12
means the New England Fund rate that (i) is] published [on the Internet 13
web site of the Federal Home Loan Bank of Boston] by The Wall Street 14
Journal as of the date the interest rate is locked in by the eligible 15
borrower and eligible financial institution. [, and (ii) has an advance 16

Raised Bill No. 5314

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term that most closely corresponds to the term of the loan being made 17
by the participating eligible financial institution.] 18
Sec. 2. Section 8-265eee of the 2026 supplement to the general statutes 19
is repealed and the following is substituted in lieu thereof (Effective July 20
1, 2026): 21
Under the program administered by the authority pursuant to 22
subsection (a) of section 8-265bbb, the authority may, within available 23
resources allocated by the State Bond Commission, make loans or issue 24
grants-in-aid to eligible borrowers that are in addition to the loans made 25
to such eligible borrowers by eligible financial institutions pursuant to 26
section 8-265ccc, as amended by this act. The loans made by the 27
authority (1) may be (A) amortizing, (B) deferred, or (C) forgivable as to 28
principal and interest, and (2) shall be [(1)] (A) subordinate to the loans 29
made by eligible financial institutions, and [(2)] (B) subject to such terms 30
as the authority may establish, including, but not limited to, loan 31
amounts, interest rates and terms to maturity. The grants-in-aid issued 32
by the authority shall be subject to such terms as the authority may 33
establish. 34
This act shall take effect as follows and shall amend the following
sections:

Section 1 July 1, 2026 8-265ccc(2)
Sec. 2 July 1, 2026 8-265eee

BA Joint Favorable