Section 8-265gg - [Effective 10/1/2024] 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 emergency mortgage assistance payments, which may, at the discretion of the authority, be in the form of monthly emergency mortgage assistance payments, lump sum emergency mortgage assistance payments or any combination thereof. Such payments shall be made directly to each mortgagee secured by the homeowner's real property in a total amount that does not exceed the amount of sixty months of emergency mortgage assistance payments, which amount shall include any such payments that the authority provides to reinstate a homeowner's mortgage or lien to a current status with the initial disbursement of an emergency mortgage assistance payment, 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, reasonable costs and reasonable attorney's fees incurred by the mortgagee in connection with foreclosure of the mortgage, and, if approved by the authority as part of a restructuring of the mortgage debt, a sum to reduce the principal balance of the mortgage to an amount that will cause the homeowner to have a reasonable prospect of resuming full periodic mortgage payments following the disbursement of all emergency mortgage assistance payments provided by the authority under this subsection.(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: (1) In an amount which shall cause the homeowner's total housing expense to be not greater than forty-five per cent of the homeowner's aggregate family income; or (2) if greater than the amount described in subdivision (1) of this subsection, in an amount which shall cause the ratio of the homeowner's total housing expense to aggregate family income to be not greater than such ratio for the one-year period immediately preceding the date when the homeowner experienced the financial hardship beyond the homeowner's control. 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 may be subject to repayment with interest, if any, 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 , the maximum amount of emergency mortgage assistance payments allowed under subsection (a) of this section has been provided or the sixty-month period established under subsection (a) of this section, during which one or more emergency mortgage assistance payments were provided, has expired, whichever is sooner. 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: (1) May, at the discretion of the authority, nevertheless advance emergency mortgage assistance payments to the mortgagee; and (2) shall, upon the homeowner's request, 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 homeowner does not demonstrate to the satisfaction of the authority that the delinquency is the result of additional financial hardship due to circumstances beyond the homeowner's control in the homeowner's financial circumstances, the authority may 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.Conn. Gen. Stat. § 8-265gg
( 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 .)
Amended by P.A. 24-0066,S. 3 of the Connecticut Acts of the 2024 Regular Session, eff. 10/1/2024.Amended by P.A. 21-0044, S. 10 of the Connecticut Acts of the 2021 Regular Session, eff. 10/1/2021.Amended by P.A. 12-0001, S. 128 of the Connecticut Acts of the 2012 Special Session, eff. 6/15/2012.Amended by P.A. 09-0209, S. 32 of the the 2009 Regular Session, eff. 10/1/2009.This section is set out more than once due to postponed, multiple, or conflicting amendments.