Regulations of Connecticut State Agencies
(a) Persons residing in emergency shelters or other emergency housing may apply to eligible providers for a security deposit loan for a rental dwelling unit in an amount of up to $250 per loan. The maximum security deposit approved for an applicant who proposes to live in a one room rental dwelling unit shall not exceed the rental charge for a period of two weeks. The Commissioner may, upon a documented showing of need, approve loans in excess of $250.
(b) On an application issued by the Commissioner of Housing, an applicant for a security deposit loan shall supply an eligible provider with their name, current residence, phone number and information concerning all assets and income of the individual or, in the case of a family, all assets and income of the applicant's family. The applicant shall also supply the provider with information concerning the available rental dwelling unit which the applicant proposes to occupy, including the address of the available rental dwelling unit, the name, address and phone number of the dwelling unit's landlord, and the amount of rent and security deposit required. The application shall include a provision to be agreed to by the applicant authorizing the Department of Housing to make inquiries it deems necessary to verify the information provided in the application and to authorize the Department to advise the provider of the status of the loan.
(c) An eligible provider shall forward completed applications for a security deposit loan and promissory notes to the Commissioner of Housing for review by the Department.
(d) Subject to the availability of funds, the Commissioner of Housing may approve an applicant's request for a security deposit loan if a review of the application shows that the applicant meets the eligibility criteria as outlined in Section 8-337-3 and has the ability to repay the loan at a rate of at least $5.00 per month.
(e) Following the approval by the Commissioner of Housing of an applicant's request for a security deposit loan, the Department shall issue a check for the amount of the loan made payable to the applicant and the landlord of the available rental dwelling unit so that the signatures of both are required for the check to be deposited.
(f) The check for the loan shall be issued to the applicant after the applicant signs a receipt for the check.
(g) The Commissioner of Housing shall establish and collect interest on each loan at a rate of no more than five per cent per annum.
(h) The Commissioner of Housing shall establish procedures for the billing and collection of all loans issued pursuant to Sections 8-337 and 8-338 of the Connecticut General Statutes. All payments of principal and interest on these loans shall be deposited in the Connecticut Security Deposit Revolving Loan Fund or any Special Operating Account authorized by the State Treasurer and State Comptroller.
(Effective October 1, 1985)