Regulations of Connecticut State Agencies
(a) CHFA shall adopt income limits for borrowers in order to carry out the policies and purposes of the Act, subject, however, to the provisions of section 8-248 E-9 of these regulations. CHFA shall adopt income limits for each county in the state that vary with the size of the household to occupy the housing to be financed, except that income limits for households of three (3) persons shall also be applicable for smaller households and the income limits for households of seven (7) persons shall also be applicable for larger households. The income limits applicable to a particular borrower is the one for the appropriate household size in the county in which the housing to be financed is located. In no event shall such income limits exceed the products, rounded to the nearest one hundred (100) dollar multiple, arrived at by multiplying one hundred thirty (130) percent by the following:
(1) for Fairfield County, the average of the median family income established from time to time by the United States Department of Housing and Urban Development ("HUD") for the federal Bridgeport-Milford, Danbury, Norwalk, and Stamford primary metropolitan statistical areas;
(2) for New Haven County, the average of the median family income for the federal New Haven-Meriden and Waterbury metropolitan statistical areas;
(3) for New London County, the median family income for the federal New London-Norwich metropolitan statistical area;
(4) for Hartford and Tolland Counties, the median family income for the federal Hartford primary metropolitan statistical area;
(5) for each other county in Connecticut, the median family income for the federal non-metropolitan county parts for the particular county.
(b) CHFA shall adopt sales price limits for mortgaged premises to carry out the policies and purposes of the Act. CHFA shall adopt sales price limits for each county in the state. In no event shall any sales price limit exceed the amount which would cause CHFA's bonds to be taxable under the Mortgage Subsidy Bond Tax Act of 1980. In no event shall such sales price limits exceed the products, rounded to the nearest one hundred (100) dollar multiple, arrived at by multiplying four (4) by the following:
(1) for Fairfield County, the average of the median family income figures published from time to time by HUD ("MFI") for the federal Bridgeport-Milford, Danbury, Norwalk, and Stamford primary metropolitan statistical areas;
(2) for New Haven County, the average of the MFI's for the federal New Haven-Meriden and Waterbury metropolitan statistical areas;
(3) for New London County, the MFI for the federal New London-Norwich metropolitan statistical area;
(4) for Hartford and Tolland Counties, the MFI for the federal Hartford primary metropolitan statistical area;
(5) for each other county in Connecticut the MFI for the federal non-metropolitan county parts for the particular county.
(c) Anything above to the contrary notwithstanding, CHFA may adopt income limits and sales price limits on a basis different than is provided in subsections (a) and (b) above, in compliance with Section 143 of the Internal Revenue Code of 1986, as follows:
(1) CHFA shall adopt income limits for borrowers in order to carry out the policies and purposes of the act.
(A) The household income of the mortgagor shall not exceed 115 percent of the applicable median income, unless in a Targeted Area.
(B) In the case of any financing provided under any bond issue for targeted area residents:
(i) One-third of the amount of such financing may be provided without regard to subparagraph (A), and
(ii) Subparagraph (A) shall be treated as satisfied with respect to the remainder of the financing if the household income of the mortgagor is 140 percent or less of the applicable median family income.
(C) For purposes of this subsection the term "applicable median income" means, with respect to a dwelling, whichever of the following is greater:
(i) The area median gross income for the area in which such dwelling is located, or
(ii) The statewide median gross income.
(2) CHFA shall adopt sales price limits for mortgaged premises to carry out the policies and purposes of the act.
(A) The acquisition cost of a dwelling shall not exceed 90 percent of the average area purchase price applicable to such dwelling, unless in a Targeted Area.
(B) For purposes of subparagraph (A) the term "average area purchase price" means, with respect to any dwelling, the average area purchase price of single family dwellings (in the federal statistical area in which the dwelling is located) which were purchased during the most recent 12-month period for which sufficient statistical information is available.
(C) For purposes of this subsection, the determination of average area purchase price shall be made separately with respect to:
(i) Dwellings which have not been previously occupied, and
(ii) dwellings which have been previously occupied.
(D) In the case of a Targeted Area residence, subparagraph (A) shall be applied by substituting "110 percent" for "90 percent"
(d) Such income limits and sales price limits shall be adopted, and as necessary changed, by resolution adopted at a regular or special meeting.
(Effective June 24, 1988)