OFFICE OF FISCAL ANALYSIS
Legislative Office Building, Room 5200
Hartford, CT 06106 (860) 240-0200
http://www.cga.ct.gov/ofa
EMERGENCY CERTIFICATION
HB-7004
AN ACT CONCERNING ELIGIBILITY FOR THE SUPPLEMENTAL
COLLAPSING FOUNDATION LOAN PROGRAM.
OFA Fiscal Note
State Impact:
Agency Affected Fund-Effect FY 21 $ FY 22 $
Resources of the General Fund GF - Potential See Below See Below
Cost
Note: GF=General Fund
Municipal Impact: None
Explanation
The bill expands eligibility to include condominiums and homes
in common interest communities under the existing Supplemental
Collapsing Foundation Loan Program1 (SCFLP). This potentially
increases costs to the General Fund, as issuing more loans may result
in more bad loans under the SCFLP. Current law requires the State
Comptroller to pay out claims from the resources of the General Fund
to honor loan guarantees up to an aggregate of $2 million.
The Out Years
The potentially higher costs for the state will continue until the
$2 million cap is reached.
The preceding Fiscal Impact statement is prepared for the benefit of the members of the General Assembly,
solely for the purposes of information, summarization and explanation and does not represent the intent of the
1SCFLP is administered by the Connecticut Housing Finance Association (CHFA), a
quasi-public state agency. The total amount of loans available is capped at $20
million, of which less than $800,000 were made and filed with CHFA by September
28, 2020.
Primary Analyst: MP 9/30/20
Contributing Analyst(s):
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General Assembly or either chamber thereof for any purpose. In general, fiscal impacts are based upon a variety
of informational sources, including the analysts professional knowledge. Whenever applicable, agency data is
consulted as part of the analysis, however final products do not necessarily reflect an assessment from any
specific department.
Sources: Connecticut Housing Finance Authority Website