Connecticut General Statutes
Chapter 134 - Connecticut Housing Finance Authority Act
Section 8-265gg. - Monthly payments by authority and homeowner. Periodic review of financial circumstances. Modification to amount of payment. Emergency lien assistance payments by authority. Foreclosure of lien.

(a) If the authority approves a homeowner for mortgage assistance under the provisions of section 8-265ff, the authority shall make monthly emergency mortgage assistance payments directly to each mortgagee secured by the homeowner's real property for a period not to exceed sixty months, either consecutively or nonconsecutively, except no such payments shall be made after sixty months have passed since the date of the initial payment. The total monthly payment made by the authority, to or on behalf of a homeowner under subsection (c) of this section, shall be not more than twenty-eight per cent of one hundred forty per cent of annual area median income, as published by the United States Department of Housing and Urban Development, divided by twelve. Upon receipt of payment in full from a homeowner of the monthly amount established under subsection (b) of this section, the authority shall pay to each mortgagee the full amount then due to the mortgagee pursuant to the terms of the mortgage without regard to any acceleration under the mortgage. Such payments shall include, but not be limited to, principal, interest, taxes, assessments and insurance premiums. The initial payment made by the authority to each mortgagee may be an amount which pays all arrearages and pays reasonable costs and reasonable attorney's fees incurred by the mortgagee in connection with foreclosure of the mortgage.

(b) A homeowner on whose behalf the authority is making emergency mortgage assistance payments shall, during the period in which such assistance is provided, make monthly payments to the authority in lieu of the homeowner's monthly mortgage payments. Such payments to the authority shall be in an amount which will cause the homeowner's total housing expense to be less than or equal to thirty-five per cent of the homeowner's aggregate family income. The homeowner shall make such payments to the authority not later than seven days before each mortgage payment is due to the mortgagee.
(c) The amount by which the emergency mortgage assistance payments made by the authority to the mortgagee exceeds the payments made by the homeowner to the authority shall be a loan in that amount made by the authority to the homeowner. Any such loan shall be evidenced by such documents as the authority may require and shall be subject to repayment with interest and secured as provided in section 8-265hh.
(d) The authority shall establish procedures for periodic review of the homeowner's financial circumstances for the purpose of determining the necessity for continuation, termination or adjustment of the amount of emergency mortgage assistance payments or adjustment of the payments by the homeowner pursuant to subsection (b) of this section. Payments shall be discontinued when the authority determines that, due to changes in the homeowner's financial condition, the payments are no longer necessary in accordance with the standards contained in section 8-265ff or the sixty-month period of eligibility for such payments under subsection (e) of section 8-265ff has expired, whichever is sooner, and a foreclosure of the homeowner's mortgage may, at any time thereafter, proceed without further restriction or requirement under sections 8-265cc to 8-265hh, inclusive. The authority may adjust payments by the homeowner pursuant to subsection (b) of this section based on a review under this subsection.
(e) If the homeowner fails to pay to the authority any amounts due under subsection (b) of this section within seven days of the date due to the authority, the authority shall review the homeowner's financial circumstances to determine whether the delinquency is the result of additional financial hardship due to circumstances beyond the homeowner's control. If the delinquency is not the result of additional financial hardship due to circumstances beyond the homeowner's control in the homeowner's financial circumstances, the authority shall terminate emergency mortgage assistance payments and the foreclosure of the homeowner's mortgage may, at any time thereafter, continue without any further restriction or requirement under sections 8-265cc to 8-265kk, inclusive. If the delinquency is the result of a change in the homeowner's financial circumstances, the authority may modify the homeowner's required monthly payments to the authority.
(f) If any mortgagee scheduled to receive payments from the authority under the provisions of sections 8-265cc to 8-265kk, inclusive, fails to receive the full amount of such payment from the authority within thirty days of the scheduled due date, or if the homeowner fails to observe and perform all of the terms, covenants and conditions of the mortgage, the mortgagee shall provide a fifteen-day notice to the authority and the foreclosure of the homeowner's mortgage may, at any time thereafter, proceed without any further restriction or requirement under sections 8-265cc to 8-265kk, inclusive.
(g) If the authority approves a homeowner for emergency lien assistance under the provisions of section 8-265ff, the authority shall make emergency lien assistance payments directly to each lienholder secured by the homeowner's real property for (1) the full amount due and payable to the lienholder under the lien, or (2) the full amount due and payable to the lienholder under the lien for the thirty-six-month period commencing on the date the first tax, water, assessment or usage charge underlying the lien became due and payable, whichever is less. Such payment may be in an amount which pays all arrearages and pays reasonable costs and reasonable attorney's fees incurred by the lienholder in connection with the foreclosure of the lien.
(h) The amount of the emergency lien assistance payments made by the authority to the lienholder shall be a loan in that amount made by the authority to the homeowner. Any such loan shall be evidenced by such documents as the authority may require and shall be subject to repayment with interest and secured as provided in section 8-265hh.
(i) If any lienholder scheduled to receive payments from the authority under the provisions of sections 8-265cc to 8-265kk, inclusive, fails to receive the full amount of such payment from the authority within thirty days of the scheduled due date, or if the homeowner fails to observe and perform all of the terms, covenants and conditions of lien, the lienholder shall provide a fifteen-day notice to the authority and the foreclosure of the lien may, at any time thereafter, proceed without any further restriction or requirement under sections 8-265cc to 8-265kk, inclusive.
(P.A. 93-414, S. 5, 10; P.A. 94-185, S. 5, 10; P.A. 08-176, S. 9; P.A. 09-209, S. 32; 09-219, S. 1; June 12 Sp. Sess. P.A. 12-1, S. 128; P.A. 21-44, S. 10, 11.)
History: P.A. 93-414 effective July 1, 1993; P.A. 94-185 made technical changes, effective June 2, 1994; P.A. 08-176 amended Subsec. (a) to change time limit for assistance payments from 36 to 60 months and change provision re initial payment to allow, rather than require, authority to pay an amount which pays all arrearages and reasonable costs and attorney's fees, and amended Subsec. (d) to change reference to mortgage eligibility period from 36 months to 60 months and to make a technical change, effective July 1, 2008; P.A. 09-209 made a technical change in Subsec. (d); P.A. 09-219 changed effective date of P.A. 09-209, S. 32, from October 1, 2009, to July 9, 2009, and applicable to applications for emergency mortgage assistance filed on and after July 1, 2008, effective July 9, 2009; June 12 Sp. Sess. P.A. 12-1 amended Subsec. (a) to prohibit payments from being made after 60 months have passed since date of initial payment, effective June 15, 2012; P.A. 21-44 replaced mortgagor with homeowner in Subsecs. (a) to (f), and P.A. 21-44, S. 11, added editorially by the Revisors as Subsecs. (g) to (i), added requirements re emergency lien assistance payments by the authority to the lienholder, loans by the authority to the homeowner, and right of lienholder to foreclose respectively and made technical and conforming changes.

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