The proposed General Assembly Substitute Bill No. 6992 establishes the "Homes for CT" loan program, designed to assist eligible borrowers, particularly owners or developers of new residential buildings, in obtaining funding for construction. The Connecticut Housing Finance Authority (the "Authority") will oversee the program, which includes guaranteeing loans from eligible financial institutions—defined as banks or credit unions with a physical presence in Connecticut—and providing subordinate loans to qualified borrowers. The program allows for loan-to-value ratios that exceed standard underwriting criteria and requires participating financial institutions to notify the Authority of any loans issued under this program. Additionally, the bill mandates that eligible borrowers must comply with criteria set by the Authority and agree to sell residential buildings only to homebuyers involved in a homebuyer loan program administered by the Authority. The program will conclude once the total loan amount reaches $100 million.

The bill also introduces new provisions to enhance financial support for residential building projects, allowing eligible financial institutions that have made a good faith effort to collect outstanding loan principals to claim recovery from the Authority, which will then submit these claims to the Comptroller for payment. Upon payment, the loan will be assigned to the state, enabling continued collection efforts by the Authority, with a cap of ten million dollars on total claims processed under this provision. Furthermore, the bill amends the structure and responsibilities of the Connecticut Housing Finance Authority, designating it as a public instrumentality and political subdivision of the state, with a board of directors comprising various appointed members. It repeals and replaces subsection (a) of section 8-244 of the general statutes to reflect these changes, ensuring the Authority's operations are recognized as essential public functions. Overall, the bill aims to facilitate housing development and improve financial mechanisms for residential projects in Connecticut.