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, such as banks and credit unions, with the potential for loan-to-value ratios that exceed standard underwriting criteria. The Authority will also provide subordinate loans to eligible borrowers, and participating financial institutions must report loan details to the Authority. The bill stipulates that loans must be secured by a mortgage deed and used exclusively for eligible construction expenses, while also requiring the Authority to create standard forms for promissory notes and mortgage deeds.

Additionally, the bill allows eligible financial institutions to recover outstanding loan principals through claims to the Authority, provided they demonstrate a good faith effort to collect these amounts. The Authority will process claims for payment by the Comptroller, and upon payment, the loan will be assigned to the state, allowing the Authority to continue collection efforts. The total claims processed are capped at ten million dollars, after which the Authority must cease processing claims and notify relevant parties. The bill also expands the powers of the Connecticut Housing Finance Authority, clarifying its role as a public instrumentality and detailing the composition and appointment process for its board of directors. Overall, the legislation aims to enhance the construction of residential buildings in Connecticut by providing financial support and flexibility to both borrowers and financial institutions.