Regulations of Connecticut State Agencies
(a) Income Limits. There shall be no income limit for eligible persons under this section. The Commissioner shall, however, give preference, through reduced interest rates or other means, to applications for loans for structures which are occupied by persons of low or moderate income. Standards for low or moderate income shall be established by the Commissioner. The Commissioner shall consider, but not be limited to, the following statistics in making this determination: poverty level statistics as determined by the U.S. Department of Health and Human Services and median income statistics as determined by the United States Department of Housing and Urban Development.
(b) Loan Limits. The loan shall not be more than one thousand dollars ($1,000) multiplied by the number of dwelling units in each structure provided no such loan shall exceed thirty thousand dollars ($30,000). If the cost of the energy improvements exceeds this amount for a structure containing more than thirty dwelling units, the eligible person shall include in his application a commitment to make comparable energy improvements to all dwelling units in the structure in addition to the thirty units which are eligible for the loan.
(c) Term. The term of the loan or loan guarantee shall not exceed ten years.
(d) Interest Rates. A range of interest rates payable on loans made under this section shall be established by the Commissioner in accordance with section 32-317(c) of the General Statutes.
(e) Underwriting.
(1) Savings/Payment Ratio. The energy conservation improvement financed by this loan shall result in net savings, as projected by a technical energy audit performed according to standards set in regulations adopted by the secretary of policy and management under section 16a-14 of the General Statutes, is at least ten percent (10%) greater than the energy loan monthly payment. In the case of multiple improvements, the net savings is the sum of the normalized savings from individual measures as projected by a technical energy audit performed according to standards set in regulations adopted by the secretary of policy and management under section 16a-14 of the General Statutes. In the case of inoperable heating systems, no technical energy audit shall be required and the energy conservation improvements shall be considered cost effective to determine the net savings.
(2) Credit.
(A) All applications for loans shall be accompanied by a written credit report obtained not more than six months prior to the date of application. Said credit report shall be for the corporation, partnership, association, or legal entity which owns and/or manages the property. If an individual owns the property, a credit report shall also be provided.
(B) All mortgages on the building to be improved shall be current and show a satisfactory payment history.
(C) Written explanation for previous poor credit, bankruptcies, delinquencies, profit and loss write-off, court judgements, collections, and/or creditor write-off shall be included with the loan application.
(D) If credit is not satisfactory and a critical or emergency condition exists, the Commissioner may approve the loan with special arrangements for payment satisfactory to the Commissioner.
(E) At the option of the Commissioner, an eligible person may be required to submit evidence that, for the property to be improved, property taxes are current.
(F) Grounds for rejection of any application shall include, but are not limited to situations where an eligible applicant: (i) has a history of any loan payment delinquency in the year prior to the date of application; (ii) had an account in collections in the year prior to application; (iii) has had an account written off to profit and loss, bankruptcy or creditor write-off within the past four (4) years; (iv) has not reestablished good credit and/or a good credit report within the past two (2) years; or (v) has property taxes or assessments which are not current with the city/town or state government.
(f) Loan Security. Pursuant to sections 32-315 to 32-318, inclusive, of the General Statutes, the State shall have a lien on each property for which a loan has been made to ensure compliance with the terms and conditions of such loan.
(g) The Commissioner may employ the criteria in this section of these regulations to provide loans to owners of residential structures which contain four or fewer dwelling units which share common property with other multi-unit structures so long as the aggregate number of units on the property is more than four.
(Effective June 11, 1996)