Sec.8-218c-3. Procedures

(a) Use of funds

The CHDCs shall use funds provided pursuant to Sections 8-218a and 8-218b to establish a fund from which loans, loan guarantees, or interest subsidies can be made which will assist in the construction and rehabilitation of dwelling units for eligible low and moderate income persons. Any project receiving assistance from the loan fund established by the CHDC must derive at least 50% of its funding from sources other than state grants or loans. The Corporation shall notify the Commissioner in writing of all financial contributions to each project from any agency of the State of Connecticut other than the Department of Housing.

(b) Applications

As part of an application for funding, the Commissioner may require that the CHDC provide documentation which may include, but is not limited to, the following: a demonstration that the CHDC has been properly designated as a CHDC by the legislative body of the municipality or municipalities in which it is operating or has been designated as a state-wide Community Housing Development Corporation by an act of the General Assembly; and description of the project or projects as defined herein, to be assisted with funds provided pursuant to this Section; a demonstration that there are financial resources from private sector sources available to projects assisted by it which are equal to or greater than the amount of the funding requested; a demonstration that each project to be assisted with funds provided pursuant to this Section derive no more than 50% of its total funds from state grants or loans; and a description of how the CHDC intends to administer its funds. Upon approval of the application by the Commissioner, the Commissioner may request that the State Bond Commission authorize the issuance of bonds of the state for the purposes described in Sections 8-218a and 8-218b.

(c) CHDC contracts

Upon approval of funding by the State Bond Commission, the CHDC and the Department of Housing shall enter into a contract which enumerates the specific obligations of each party, including, but not limited to, requirements for a feasibility analysis for each property, requirements for the preparation of work specifications and cost estimates, the time allowed for completion of the rehabilitation work, the type of security required for each loan, and the income levels permitted for the tenants of the projects.

(d) Project recommendations

Upon execution of a contract, the CHDC shall recommend to the Commissioner individual projects which will benefit from a loan, loan guarantee or interest subsidy. The Commissioner shall review the CHDC's recommendation and based on its compliance with these regulations, notify the CHDC of his approval or rejection of each project.

(Effective May 23, 1986)