The proposed General Assembly Raised Bill No. 6992 establishes the "Homes for CT" loan program, aimed at assisting eligible borrowers in securing funding for residential construction. The Connecticut Housing Finance Authority (the "Authority") will oversee the program, which includes provisions for guaranteeing loans from eligible financial institutions, such as banks and credit unions. The bill introduces new legal language that allows for loan-to-value ratios exceeding typical underwriting standards and provides for subordinate loans to eligible borrowers. It also mandates that the Authority and the Department of Banking publish information about the program and participating institutions by September 1, 2025. Additionally, the bill sets a cap on the total amount of claims processed under the loan guarantee program at ten million dollars, after which the Authority must cease processing claims and notify relevant parties.

Furthermore, the bill makes significant amendments to the governance structure of the Connecticut Housing Finance Authority by repealing and replacing subsection (a) of section 8-244 of the general statutes. This change establishes the Authority as a public instrumentality and political subdivision of the state, detailing the composition and appointment process for its board of directors. The new language emphasizes the Authority's role in performing essential public functions and outlines qualifications and terms for board members, ensuring diverse expertise in housing and finance. Overall, the bill aims to enhance access to funding for residential construction while ensuring accountability and effective governance within the program.