The proposed General Assembly Substitute Bill No. 6992 establishes the "Homes for CT" loan program, aimed at assisting eligible borrowers, particularly owners or developers of new residential buildings, in securing funding for construction. The Connecticut Housing Finance Authority (the "Authority") will oversee the program, which includes guaranteeing loans from eligible financial institutions and providing subordinate loans to borrowers. The program allows for higher loan-to-value ratios than standard underwriting practices and mandates that participating institutions inform the Authority of their loan activities. The total loan cap for the program is set at $100 million, after which no further participation will be permitted.

Additionally, the bill introduces provisions that enhance financial support for residential projects, allowing financial institutions that have made efforts to collect outstanding loan principal to claim recovery from the Authority, which will then submit claims to the Comptroller for payment. The bill also amends the structure of the Connecticut Housing Finance Authority, defining its roles and responsibilities, and includes a repeal and replacement of subsection (a) of section 8-244 of the general statutes to reflect these changes. Overall, the legislation aims to streamline financial assistance for residential construction while ensuring accountability and oversight, with specific criteria for eligible borrowers and a focus on supporting homebuyer loan programs administered by the Authority.