Conn. Gen. Stat. § 8-265bbb: “Homes for CT” loan program.

(a) The authority shall administer a “Homes for CT” loan program to assist eligible borrowers to obtain funding necessary for the construction of residential buildings by guaranteeing the repayment of loans made by eligible financial institutions to eligible borrowers, which loans (1) may have loan-to-value ratios in excess of typical underwriting standards, and (2) shall be subject to any conditions or limitations established by the authority, in consultation with representatives from the banking industry, and published on the authority's Internet web site. Under the program, the authority may also provide to eligible borrowers additional loans that shall be subordinate to the loans made to such eligible borrowers by eligible financial institutions. In accordance with the provisions of subsection (a) of section 8-265ddd, the authority shall process claims for the recovery of the outstanding principal amount of the loans made by eligible financial institutions and submit such claims to the Comptroller for payment. Subject to the cessation of the processing of such claims under subsection (d) of section 8-265ddd, the Comptroller shall pay from the General Fund all such claims that are submitted by the authority.

(b) (1) Except as provided in subsection (e) of this section, any eligible financial institution may participate in the program after providing the department and the authority with advance written notice of the eligible financial institution's intention to participate in the program. Such notice shall be in the form and manner prescribed by the department and the authority, and shall include contact information for the eligible financial institution. Nothing in this section shall be construed to preclude an eligible financial institution that has elected to participate in the program from issuing loans to eligible borrowers outside of the program.

(2) An eligible financial institution may suspend its participation in, or withdraw from, the program after giving advance written notice to the department and the authority that specifies the date when such suspension or withdrawal will become effective, provided such date shall be at least five business days after the date when such notice is given. Such withdrawal or suspension shall not affect the eligible financial institution's ability to submit a guarantee claim on any loan for which the eligible financial institution provided notice to the authority pursuant to subdivision (1) of subsection (d) of this section prior to the effective date of the withdrawal or suspension.

(3) Not later than October 1, 2025, the department and the authority shall each publish on their Internet web sites a summary of the program and a list of the eligible financial institutions that have elected to participate in the program. The list shall be updated from time to time and shall include the contact information of each participating eligible financial institution. The department shall also provide information concerning the program to mortgage servicers licensed pursuant to section 36a-718.

(c) (1) The authority may develop, in consultation with representatives from the banking industry, one or more standard promissory note and mortgage deed forms that may be used by eligible financial institutions making loans pursuant to section 8-265ccc.

(2) Not later than October 1, 2025, the authority shall develop, in consultation with representatives from the banking industry, (A) reasonable standards that an eligible financial institution may rely upon to demonstrate that such eligible financial institution made good faith collection efforts in accordance with the provisions of subsection (a) of section 8-265ddd, and (B) a readily accessible communication portal by which participating eligible financial institutions may verify the most recently available total dollar amount of (i) loans of which the authority has been notified pursuant to subdivision (1) of subsection (d) of this section, and (ii) claims submitted to the Comptroller pursuant to subsection (a) of section 8-265ddd.

(3) The forms and standards developed pursuant to this subsection shall, to the extent feasible, be closely aligned with industry standards, but shall not require post-delinquency collection efforts extending beyond ninety days.

(d) Each eligible financial institution that agrees to make a loan to an eligible borrower pursuant to section 8-265ccc shall:

(1) Not later than one business day after agreeing to make the loan, provide to the authority written notice that specifies the amount of the loan and any other information about the eligible borrower and the loan that the authority may request;

(2) Not later than seven business days after agreeing to make the loan, provide to the authority a copy of the promissory note for such loan and the mortgage deed that secures such promissory note; and

(3) On a monthly basis, provide to the authority a written report disclosing the status of the loan, including, but not limited to, the principal amount, the outstanding balance and the amount of any funds that the eligible financial institution has agreed to lend to the eligible borrower but has not yet disbursed.

(e) When the total amount of loans reported to the authority, including outstanding loans and loans that eligible financial institutions have agreed to make, reaches one hundred million dollars, the authority shall immediately close participation in the program and notify each eligible financial institution participating in the program. A participating eligible financial institution may condition the availability of any loan agreement on the availability of the program.