Housing (Mortgages)

This bill amends a 1995 agreement regarding a 10-acre state-owned parcel in Middletown that was previously sold to the Shiloh Baptist Community Development Corporation. The legislation clarifies that the land must be used for moderate-income housing and public recreational facilities by June 30, 2029, while explicitly prohibiting its use for religious teaching or practice. If the corporation fails to begin construction by the deadline or does not comply with federal nondiscrimination requirements, the property will revert to state ownership. The bill also ensures that any existing mortgage debt remains enforceable even if the land reverts to the state.

HB 5314 updates Connecticut's "Homes for CT" loan program to set a clear interest rate cap: loans from participating financial institutions must charge a rate not exceeding The Wall Street Journal's published prime rate (replacing a previous Federal Home Loan Bank reference). It also expands the Connecticut Housing Finance Authority's role, allowing it to provide additional loans or forgivable grants-in-aid to eligible borrowers beyond those from banks, with these new loans being subordinate to bank loans. The changes directly affect Connecticut homebuyers (particularly first-time buyers) who qualify for the program through participating lenders. The bill takes effect July 1, 2026, and aims to streamline program administration while maintaining affordability.

SB 217 requires mortgage lenders (mortgagees) to accept monthly, semimonthly (twice monthly), or biweekly (every two weeks) payments for new mortgage loans originated on or after October 1, 2026. This applies directly to lenders and borrowers, changing how payment schedules can be structured for new loans. The bill mandates that lenders must accept these payment frequencies as standard options, without imposing additional fees or restrictions. It does not affect existing mortgages or require lenders to alter payment terms for current borrowers.

HB 5162 amends Connecticut's bond authorization for the Connecticut Housing Finance Authority (CHFA), expanding the use of $38 million in funds to cover both emergency mortgage assistance and down payment assistance under the state's homeownership loan program. This change directly affects CHFA and Connecticut homeowners participating in the homeownership loan program (sections 8-283 to 8-289 of state statutes). The bill modifies existing funding rules to permit the same $38 million to capitalize down payment assistance, which was previously ineligible under this specific bond authorization. The amendment takes effect July 1, 2026.