Conn. Gen. Stat. § 4-68ccc: Loans for water quality project.

(a) On and after July 1, 2028, the Secretary of the Office of Policy and Management shall establish and administer a program to provide loans for any municipality that seeks to develop an eligible water quality project, as defined in section 22a-475, for sewer collection and conveyance system improvements. To be eligible to receive such a loan, a municipality that seeks to develop any such project shall comply with the criteria set forth in subsections (b) and (c) of this section. No loan provided pursuant to this section shall exceed one hundred per cent of the eligible water quality project costs. Notwithstanding any section of chapter 446k, any such loan shall be made at an interest rate of one and one-half per cent per annum for a term of twenty years.

(b) To be eligible for a loan pursuant to this section, a municipality shall:

(1) Have a population of not more than fifty thousand people;

(2) Obtain a letter from the Office of Policy and Management that confirms the proposed project is consistent with the state's plan of conservation and development; and

(3) Demonstrate that the eligible sewer collection and conveyance system improvement is or will be funded, designed and constructed in a manner that complies with applicable state and federal statutes and regulations.

(c) In addition to the requirements of subsection (b) of this section, to be eligible to receive a loan pursuant to this section, a municipality shall:

(1) Demonstrate, to the satisfaction of the secretary, that the municipality has taken steps to implement an approved housing growth plan or regional housing growth plan, in accordance with section 8-13bb; or

(2) Be a qualifying transit-oriented community pursuant to section 8-13hh; or

(3) Have an adopted development district established pursuant to a memorandum of agreement with the Connecticut Municipal Development Authority.