Substitute House Bill No. 5162 amends the existing bond authorization for the Connecticut Housing Finance Authority (CHFA) to expand the allowable uses of the funds. Specifically, the bill allows CHFA to utilize the bond authorization not only for the Emergency Mortgage Assistance Program (EMAP) but also to capitalize down payment assistance issued under the homeownership loan program. This change is significant as it broadens the scope of financial assistance available to homeowners and first-time homebuyers, thereby addressing different aspects of housing affordability.

The bill modifies subdivision (3) of subsection (c) of section 9 of public act 12-189 by inserting language that permits the use of funds for down payment assistance, which was not previously allowed. The effective date for this amendment is set for July 1, 2026. The bill does not alter the overall General Obligation bond authorization levels but may lead to future General Fund debt service costs due to the expanded use of the funds. As of March 1, 2026, there remains an unallocated bond balance of $5 million under the existing authorization.