Substitute House Bill No. 6992 establishes the "Homes for CT" loan program, administered by the Connecticut Housing Finance Authority (CHFA), to provide financial assistance for the construction of new residential buildings, including single-family homes, multi-family units, and condominiums. The program allows CHFA to guarantee loans from eligible financial institutions, such as banks and credit unions, enabling them to offer loans with higher loan-to-value ratios than typically permitted. Key provisions include a cap of $100 million on the total amount of loans and a limit of $10 million on claims paid for loan guarantees. The bill introduces new definitions for "eligible borrower" and "eligible financial institution," while deleting certain existing provisions to streamline implementation. It also mandates that loan proceeds be used solely for eligible construction expenses and requires participating institutions to notify CHFA of their loan activities.

The bill outlines specific requirements for program participation, including the development of standardized promissory note and mortgage deed forms, and establishes a communication portal for real-time verification of loans. Participating banks and credit unions must demonstrate good faith efforts to collect outstanding loan principal, with CHFA processing claims for recovery capped at $10 million. Additionally, the bill allows CHFA to terminate loan guarantees in cases of non-compliance or misrepresentation. The fiscal impact includes potential costs and revenue gains for the General Fund, with CHFA expected to incur annual costs of approximately $300,000 for program administration. The effective date of the bill is upon passage, with provisions for a program summary and participant list to be established by September 1, 2025.