Section 17-619-11 - Loans(a) Families whose income levels are between 30 and 60 per cent of the state median income adjusted for family size may qualify for a loan.(b) Participating mediation agencies may authorize a loan under this program in an amount not less than $200 and not greater than $1,200 for a term not to exceed twelve (12) months. Loans may be approved for any increment and timeframe within the provisions listed in subsection (b) of Section 17-619-11 in accordance with the professional judgment of the mediator(s).(c) Families who qualify for a loan under Section 17-619-11 may not have monthly installment debt in excess of 50% of their net monthly income. The amount of installment debt shall include the following: (1) current rent or mortgage payment;(2) periodic payments due on any back rent or back-mortgage payment;(3) periodic payments due on a loan under this program;(4) any motor vehicle loan payment(s);(5) credit card loan payments; and(6) court ordered alimony and/or child support payments.(d) Repayment of loans shall be based on a monthly repayment schedule over the life of the loan.(e) Monthly service fees and any origination fees shall be paid from rent bank funds by the mediation agency on behalf of the borrower. In no event shall the service fee or origination fee be charged to the borrower.(f) Rent bank loans shall bear interest at an annual rate not to exceed six (6) per cent.(g) If a family defaults on a loan, the mediation agency shall contact the family to review the obligation, the reason for the default, and, if necessary, negotiate a new financial assistance agreement. For the purposes of these regulations, any loan that is in arrears in excess of forty (40) days shall be considered in default.(h) After complying with subsection (g) of Section 17-619-11, any uncured or new default shall be reported to the bank servicing the loans for disclosure to any credit reporting agency and reported to the state funding agency for collection as a state debt.Conn. Agencies Regs. § 17-619-11
Effective October 1, 1993