 |
Regulations of Connecticut State Agencies (Last Updated: June 14,2023) |
 |
Title8 Zoning, Planning, Housing, Economic and Community Development |
|
|
SubTitle8-219e-1_8-219e-9. Hazardous Material Program |
| Sec. 8-219e-1. Definitions |
|
Latest version.
|
|
The following definitions apply to Sections 8-219e-1 to 8-219e-9 inclusive of the Regulations of Connecticut State Agencies: (a) "Commissioner" means the Commissioner of Housing. (b) "Department" means the Connecticut Department of Housing. (c) "Residential Dwelling Unit" means a room or group of rooms arranged for use as a single household by one or more individuals living together who share living, sleeping, cooking, eating and toilet/bathing facilities. (d) "Developer" means (1) A housing authority established in accordance with Section 8-40 of the Connecticut General Statutes and the Connecticut Housing Authority when exercising the rights, powers, duties or privileges of or subject to the immunities or limitations of housing authorities pursuant to Section 8-121 of the Connecticut General Statutes; or (2) A nonprofit corporation incorporated pursuant to Chapter 600 of the Connecticut General Statutes, having as one of its purposes the construction, rehabilitation, ownership, or operation of housing, and having articles of incorporation approved by the Commissioner; or (3) A municipal developer, which means a municipality which has not declared by resolution a need for a housing authority pursuant to Section 8-40 of the General Statutes, acting by and through its legislative body, except that in any town in which a town meeting or representative town meeting is the legislative body, "municipal developer" means the board of selectmen if such board is authorized to act as the municipal developer by the town meeting or representative town meeting; or (4) A business corporation incorporated pursuant to Chapter 599 of the Connecticut General Statutes, having as one of its purposes the construction, rehabilitation, ownership, operation of housing, and having articles of incorporation approved by the Commissioner; or (5) A partnership which means a partnership, limited partnership, joint venture, trust or association having basic documents of organization approved by the Commissioner, and having as one of its purposes the construction, rehabilitation, ownership, or operation of housing; or (6) A family or person approved by the Commissioner as qualified to receive financial assistance for the abatement of hazardous materials under an agreement entered into pursuant to the provisions of Section 8-219e of the Connecticut General Statutes and these regulations; or (7) A Community Housing Development Corporation incorporated and organized pursuant to the requirements of Chapter 600 and Section 8-217 of the Connecticut General Statutes, having as one of its purposes the financing, acquisition, construction or rehabilitation of housing, and having articles of incorporation approved by the Commissioner. (e) "Family" means a household consisting of one or more persons. (f) "Low and Moderate Income Family" means families who lack the amount of income necessary to rent or purchase decent, safe and sanitary housing without financial assistance, as determined by the Commissioner. (g) "Hazardous Materials" means lead-based paint, asbestos and asbestos-containing material. (h) "Hazardous Materials Project" or "Project" means any work or undertaking to provide technical assistance and abate hazardous materials in order to provide decent, safe and sanitary dwelling units. (i) "Technical Assistance" means support provided for activities including but not limited to assessing the amount and extent of hazardous materials in a residential dwelling unit, developing plans for removal of hazardous materials, assisting property owners in identifying and securing financial assistance for removal of hazardous materials and purchasing equipment necessary to provide technical assistance. (j) "Borrower" means any property owner that receives financial assistance for a hazardous materials project. (k) "Financial assistance" means grants, loans, deferred loans or any combination thereof. (l) "Abatement" means any set of measures designed to eliminate lead or asbestos hazards in accordance with regulations adopted by the Department of Public Health and Addiction Services, including, but not limited to, the encapsulation, replacement, removal, enclosure or covering of paint, plaster, soil or other material containing toxic levels of lead; and any activities related to the removal, encapsulation, enclosure, renovation, repair, demolition or other disturbance of asbestos-containing materials. |
|
(Effective October 19, 1995) |
| Sec. 8-219e-2. Program description |
|
Latest version.
|
|
(a) The Commissioner is authorized to extend financial assistance in the form of a loan, deferred loan, grant, or any combination thereof, to developers for the abatement of lead-based paint, asbestos and asbestos-containing material from residential dwelling units and for technical assistance. The amount of state financial assistance shall not exceed two-thirds of the cost of the abatement or the cost of the technical assistance. (b) Developers shall be required to comply with all rules and orders promulgated from time to time by the Commissioner and consistent with the Connecticut General Statutes, and these regulations. (c) All abatement of hazardous materials shall be performed in compliance with Department of Public Health and Addiction Services approved regulations and guidelines, or the U.S. Department of Housing and Urban Development approved regulations and guidelines. (d) In the case of multiple funding sources, if a conflict occurs between the various requirements the more stringent requirement or requirements shall apply. |
|
(Effective October 19, 1995) |
| Sec. 8-219e-3. Eligibility |
|
Latest version.
|
|
To be eligible to participate in this program; (a) A housing authority must, in addition to the requirements in subsection (d) below: (1) Be in good standing with the Department; and (2) Submit a statement from the legal counsel of the municipality that verifies that the housing authority is recognized and continues to be properly constituted by the municipality in accordance with Section 8-40 of the Connecticut General Statutes. (b) A nonprofit corporation must, in addition to the requirements in subsection (d) below: (1) Submit an endorsed certificate of incorporation certified by the Secretary of the State; (2) Submit a certificate of good standing certified by the Secretary of the State; and (3) Submit a statement in writing of the corporation's principal place of business. (c) A partnership must, in addition to the requirements in subsection (d) below: (1) Submit a copy of the organizational documents of the partnership showing that the partnership consists of a nonprofit corporation, housing authority or municipal developer; and (2) Submit a statement in writing of the partnership's principal place of business. (d) All housing authorities, nonprofit corporations or partnership must: (1) Submit a list of housing projects which they have developed, owned or managed; and (2) Submit a statement authorizing the Commissioner to apply for a credit report from any appropriate credit reporting agency covering the developer for consideration in determining the financial capability of the developer. (e) A person or family approved by the Commissioner shall: (1) Submit their Social Security number(s); (2) Inform the Department, in writing, of their place of employment and the telephone numbers of the person or the family members; and (3) Submit a statement authorizing the Commissioner to apply for a credit report from any appropriate credit reporting agency covering the person or family for consideration in determining their financial capability. (f) The following item shall constitute eligibility for a municipal developer: A notarized copy of its legislative body's resolution designating the legislative body or board of selectmen to act as a municipal developer. |
|
(Effective April 20, 1990) |
| Sec. 8-219e-4. Application process |
|
Latest version.
|
|
(a) The Commissioner may solicit and/or accept applications for financial assistance from developers. (b) As part of the application and approval process for financial assistance for abatement of hazardous materials, the developer shall be required to furnish the following: (1) Certification of the developer's eligibility, as defined in Section 8-219e-3; (2) A description of the residential dwelling unit which contains the hazardous materials, as well as an explanation of the nature of the problem; (3) A timetable which establishes a target date for completion of all work; (4) A plan of abatement prepared in accordance with guidelines and standards issued by the Commissioner and consistent with regulations and guidelines approved by the Department of Public Health and Addiction Services or in their absence, by the U.S. Department of Housing and Urban Development; (5) Names, addresses and telephone numbers of its current Commissioner, Directors, Officers, Statutory Agent for service or members of its legislative body; and (6) Evidence acceptable to the commissioner of the availability of funds from other sources necessary to meet the full cost of abatement. (c) As part of the application and approval process for financial assistance for technical assistance, the developer shall be required to furnish the following: (1) Certification of the developer's eligibility, as defined in section 8-219e-3; (2) Names, addresses and telephone numbers of its current commissioners, directors, officers, statutory agent for service or members of its legislative body; (3) A description of the technical assistance to be provided; (4) A detailed budget identifying specific line items and projected costs; and (5) Evidence acceptable to the commissioner of the availability of funds from other sources necessary to meet the full cost of technical assistance. (d) The commissioner may, from time to time, request additional information from the developer. |
|
(Effective October 19, 1995) |
| Sec. 8-219e-4a. Underwriting standards and criteria | ||||||||||||||||||
|
Latest version.
|
||||||||||||||||||
|
(a) Underwriting standards for financial assistance under this program shall be based on the following: (1) Lead-based paint: A determination by a Connecticut certified inspector that lead-based paint hazards are present in the unit, and evidence of an abatement plan approved by the local Director of Health which meets all the requirements specified in the Department of Public Health and Addiction Services (DPHAS) regulations and guidelines. (2) Asbestos: An order for remedial action by the appropriate local official for the abatement of asbestos hazards. (b) All abatement activities shall be performed by a Connecticut certified inspector/abater in accordance with the DPHAS regulations and guidelines. (c) Eligible borrowers shall obtain two itemized estimates, prepared by Connecticut certified inspectors or abaters, of the cost of the abatement. (d) The type of financing to be provided shall be underwritten according to the income of the family residing in the unit. Eligible borrowers shall qualify for financial assistance on a unit by unit basis, based on the percentage of Area Median Income, as defined by the U.S. Department of Housing and Urban Development, of the family residing in the unit to be abated.
(e) Persons and families with area median incomes 200% and above shall provide certification from a lending institution regulated by the laws of this state that a loan for the lead abatement and rehabilitation has been denied; (f) In the case of multifamily structures or multiple buildings owned by one borrower, the financial assistance shall be underwritten according to the income of the family residing in each unit. The financial assistance for all units shall be blended into one contract for financial assistance. (g) The grant amount subject to a lien shall be decreased by 10% each year, until the 10th year, whereupon the lien shall be released. If the liened property is sold prior to completion of the 10 year term, the remaining pro-rated amount of the grant or up to the amount available from the actual proceeds from such sale shall be recovered by the Department. (h) Requirements for loans shall include but not be limited to the following: (1) The standard loan term shall be fifteen (15) years, however a borrower may select a shorter term; (2) All loans shall be subject to immediate repayment if the property is sold prior to the end of the loan year term; (3) Loans shall be in a principal amount of not less than $1,000; (4) The interest rate for loans shall be determined in accordance with Subsection (t) of Section 3-20 of the Connecticut General Statutes; (5) Borrowers that receive 0%, 1% and/or 3% loans may select to: 1) defer the principal until the end of the maximum allowable loan term or sale of the property, whichever occurs first or 2) pay in accordance with guidelines established for borrowers of 6% loans as specified in these regulations; and (6) Owners that receive 6% loans shall be required to pay principal and interest on a monthly basis in accordance with the loan note and established term. (i) In cases where a borrower demonstrates that he or she does not have income sufficient to qualify or afford a loan under the standard underwriting guidelines established in this section, he or she may request application of alternate underwriting criteria. (j) The terms and conditions for each borrower receiving financing pursuant to alternate underwriting criteria shall vary on a case-by-case basis depending on the borrower's overall financial capacity. Each borrower shall be evaluated and selected if his or her financial documentation illustrates an income to debt ratio of at least 1:3 or worse. (k) Applicants of alternate underwriting criteria shall have various financing options available to them, including but not limited to: deferred principal payments, variable rate financing, extended loan terms, deferral of principal until sale of the property or any combination thereof. (l) Borrowers who are owner-occupants applying for alternate underwriting criteria shall submit detailed income and debt verification. (m) Borrowers who own rental property or properties shall submit documentation demonstrating that the income received from the rental property is insufficient to cover additional debt. Such borrowers shall also be required to submit documentation of all property income and debt, including but not limited to existing property mortgages, leases, or if no leases exist, a certified rent roll. |
||||||||||||||||||
|
(Effective October 19, 1995) |
| Sec. 8-219e-5. Selection process |
|
Latest version.
|
|
(a) Applications shall be approved or disapproved by the commissioner based on factors listed in Section 8-219e-4, the availability of financial assistance, and factors which shall include, but are not limited to: (1) Any needs outlined in the Department's Five Year Housing Advisory Plan; (2) The administrative and financial capability of the developer to plan, complete and manage a project; (3) Preference to low and moderate income families to the extent financially possible and buildings housing a child who is suffering from lead paint poisoning; (4) Certification that the abatement will be in accordance with guidelines and standards issued by the Department of Public Health and Addiction Services; and (5) Demonstration of the ability to provide one-third of the cost of the project. (b) If an application is disapproved, the developer shall be notified in writing of the reasons for the disapproval. (c) If an application is approved, the Commissioner shall notify the developer, in writing, that the project may proceed and inform the developer of the contents and terms of the contract(s) for state financial assistance to be entered into with the developer. |
|
(Effective October 19, 1995) |
| Sec. 8-219e-6. Contract for financial assistance |
|
Latest version.
|
|
(a) Following approval of the State Bond commission pursuant to the provisions of Section 3-20 of the Connecticut General Statutes, the State, acting by and through the Commissioner, may enter into a contract with a developer for financial assistance for project(s) in an amount not in excess of two-thirds of the cost of the project(s) as approved by the Commissioner. (b) Such contract(s) shall include but not be limited to the amount and form of financial assistance to be provided and the rights and obligations of the parties under the contract(s). (c) A lien shall be filed on all property for which the State has provided financial assistance. The Commissioner may subordinate the State's lien if the level of state financial assistance so warrants. (d) In addition to whatever remedies exist in the contract, the developer shall, upon demand by the Commissioner, pay back to the State the full amount of any financial assistance provided under this program, if the Commissioner determines that: (1) Reasonable progress in the development of the activity, as submitted pursuant to Section 8-219e-4, has not been made; or (2) The financial assistance has been used for purposes other than the abatement of hazardous material or eligible technical assistance; or (3) The developer has amended its purpose or the activity so that it no longer conforms with that originally submitted and approved. |
|
(Effective October 19, 1995) |
| Sec. 8-219e-7. Financial reporting and access to records |
|
Latest version.
|
|
(a) Each developer shall maintain complete and accurate books and records, insofar as they pertain the Hazardous Material projects, and they shall be set up and maintained in accordance with the latest procedures approved by the Commissioner. (b) Each developer shall maintain complete and accurate books and records, insofar as they pertain to Hazardous material projects, and they shall be set up and maintained in accordance with the latest procedures approved by the Commissioner. (c) At any time during regular business hours, and as often as the Commissioner may require, the Commissioner or his representatives shall be entitled to full and free access to the accounts, records and books of the developer relative to the project, said permission to include the right to make or require the developer to provide excerpts or transcripts from such accounts, records and books. |
|
(Effective October 19, 1995) |
| Sec. 8-219e-8. Fiscal compliance and examination |
|
Latest version.
|
|
Each developer receiving financial assistance shall be subject to examination of all books and records. Examinations shall be performed by independent public accountants registered to practice in the State of Connecticut, or by qualified Department personnel. All examinations shall be in accordance with procedures established by the Department. |
|
(Effective October 19, 1995) |
| Sec. 8-219e-9. Waivers |
|
Latest version.
|
|
The Commissioner may waive any of the nonstatutory requirements. Requests for a waiver shall be in writing from the sponsor. Such a waiver may only be granted if there is sufficient evidence that: (1) The literal enforcement of such provisions provide for exceptional difficulty or unusual hardship not caused by the applicant; and (2) The benefit to be gained by the waiver clearly outweighs the detriment which will result from enforcement of the requirement; and (3) The waiver is in harmony with conserving public health, safety, and welfare; and (4) The waiver is in the best interest of the State. |
|
(Effective October 19, 1995) |