The General Assembly Raised Bill No. 1363 proposes the establishment of a pilot program aimed at assisting certain mortgage borrowers who have unpaid student loan debt. This program will be developed and administered by the Connecticut Housing Finance Authority (CHFA) as part of the existing homeownership loan program. It will provide eligible mortgage holders with a reduction in their interest rate by 1.125 percent. The CHFA is tasked with creating guidelines for the program, which will include eligibility requirements and other necessary criteria.

To qualify for this program, borrowers must meet several conditions: they must be first-time homebuyers or have not owned a home in the past three years (unless purchasing in a targeted area), have a gross income at or below 100 percent of the area median income, and possess a combined student loan debt with an unpaid principal balance of at least $15,000, among other requirements. The bill is set to take effect on July 1, 2025, and aims to provide financial relief to eligible borrowers struggling with student loan debt while seeking homeownership.