Connecticut law allows nonprofits to borrow for disability community homes

The Department of Developmental Services may provide housing subsidies to eligible people. The subsidies are for people with intellectual disabilities placed in supervised apartments, condominiums, or homes. The department may provide subsidies only within available appropriations. The home must not receive housing payments under section 17b-244. This provision is effective from passage.

The department may lend money to eligible nonprofits for community home projects and major repairs. The loans are for private nonprofit corporations that qualify to do business in Connecticut and apply through the loan program. Covered homes house up to six people with intellectual disabilities or autism and provide support for community living. Construction loans may cover up to the full project cost. For a purchase and renovation loan, renovation costs above the purchase cost may not exceed $100,000. Loans for major repairs and improvements must be between $3,000 and $100,000. A provider receiving a loan must own and operate the home and keep it licensed or certified for the loan period. The State Bond Commission may authorize up to $6 million in bonds for the loan program. This provision is effective from passage.

Borrowers must follow their loan agreements, repay their loans, and reserve beds for state referrals in some new homes. These terms apply to organizations borrowing for community residential facilities under the loan program. Borrowers must keep a home licensed or certified for the loan repayment period, which must be at least five and no more than thirty years. For a new home funded entirely by the loan, all beds must be reserved for department referrals. If the loan covers less than the full project cost, at least two-thirds of the beds must be reserved. These reservations last until the department decides they are no longer needed. If a borrower defaults, the department must require repayment of the outstanding loan and may foreclose on its mortgage. If the department ends the provider's license for cause and it is not restored within one year, that counts as a default. This provision is effective from passage.