Regulations of Connecticut State Agencies
The following definitions apply to Section 8-289-8 through Section 8-289-12 of the Regulations of Connecticut State Agencies:
(1) "Assets" means cash, cash equivalents and real property.
(2) "Commissioner" means the Commissioner of Housing.
(3) "Condominium" means a common interest community in which portions of the real property are designated for separate ownership and the remainder is designated for common ownership solely by the owners of those portions, and whose condominium instruments are recorded and lawfully submitted pursuant to the provisions of Chapter 825 or 828 of the Connecticut General Statutes.
(4) "CHFA" means the Connecticut Housing Finance Authority.
(5) "Department" means the Connecticut Department of Housing.
(6) "Dwelling" means the homebuyer's permanent, principal residence.
(7) "Cash equivalents" means instruments or investments of such high liquidity and safety that they are virtually as good as cash, including, but not limited to:
(A) Checking and savings accounts;
(B) Trustee and/or custodial accounts;
(C) Money market funds;
(D) Treasury bills;
(E) Interest from savings and corporate stocks and bonds reported on the home-buyer's latest internal revenue service form 1040; and
(F) Funds in any retirement plan where the funds may be borrowed from provided the debt service payment can be absorbed in the underwriting ratios employed by the first mortgage lender.
(8) "Homebuyer" means a family or person whose income is at or below one hundred percent (100%) of the area median income as determined from time to time by the United States Department of Housing and Urban Development or is within the income limits established by the Connecticut Housing Finance Authority, whichever is greater, and who lacks sufficient financial resources to make a down payment or regular mortgage payment on private housing.
(9) "Equity" means cash or any other liquid assets which the Commissioner determines to be readily convertible to cash, which may include but is not limited to vacation homes, mobile homes, real property, employer/employee savings, 401(K) Plans, or IRA accounts where the applicant can no longer participate.
(10) "HUD" means the [Federal] United States Department of Housing and Urban Development.
(11) "Individual Retirement Account" (IRA) means a retirement savings account in which any individual employee may contribute up to two thousand dollars ($2,000) annually.
(12) "Liquid Assets" means cash, or assets readily convertible to cash, such as:
(A) Any cash in checking and savings accounts under the social security number of the homebuyer(s);
(B) Cash in trustee and/or custodial accounts listed under the social security number of the homebuyer(s);
(C) Interest from savings and corporate stocks and bonds reported on the home-buyer's latest internal revenue service form 1040; and
(D) Funds in any retirement plan were withdrawal is permitted for home purchase. If permitted by the plan, the funds may be borrowed from the plan in lieu of actual withdrawal if the debt service payment can be absorbed in the underwriting ratios employed by the first mortgage lender.
(13) "Salary reduction plan" or "401 (K) plan" means an employer sponsored retirement savings program named for the section of the internal revenue code that permits it. These plans allow employees to invest pre-tax dollars that are often matched in some portion by employers.
(14) "Second Mortgage" means the second lien placed upon real estate which is already pledged as security for a first mortgage loan.
(Effective February 28, 1994)