Looney: General Assembly Takes Action to Help Neighborhoods and Homeowners Affected By Foreclosures

General Assembly also expands tax credits for businesses that hire blind workers

Senate Majority Leader Martin Looney (D-New Haven) says action taken today in special session by the General Assembly will help neighborhoods and homeowners in Connecticut cope with the effects of the mortgage foreclosure crisis. Legislation was also passed that offers tax credits to businesses which hire blind workers.

Foreclosures: The legislation exempts properties facing foreclosure or ‘short sales’ from the real estate conveyance tax, and expands a state program that helps borrowers purchase foreclosed or abandoned properties. Both bills passed the Senate with strong bipartisan support.

“Families in New Haven and Hamden are feeling the impact of the mortgage foreclosure crisis,” said Senator Looney. “Growing jobs is the best way to put a stop to the foreclosures and our bipartisan jobs bill is sure to help. At the same time, these additional measures will offer some relief to homeowners and neighbors.”

Senate Bill 501 includes language that exempts foreclosed properties and ‘short sales’ from the real estate conveyance tax. The changes mean that homeowners facing foreclosure won’t face the additional challenge of paying the conveyance tax.

Tax credits: Senate Bill 501 also includes a section that expands tax credits for businesses that hire people with disabilities—something that was adopted in the Majority Leaders’ Jobs bill (Public Act 10-75). The Office of Legislative Research states, “PA 10-75 authorizes insurance premium, corporation business, and personal income tax credits for businesses hiring Connecticut residents with disabilities. This bill expands the range of new employees that qualify businesses for the credits to include people with blindness.” The bill is effective upon passage.

Senator Looney also supported passage of Senate Bill 502, which includes enhancements to the CT Families and the Homeowner’s Equity Recovery (HERO) loan program operated by the CT Housing Finance Authority (CHFA). The new law allows the CHFA to make mortgage loans to borrowers who purchase (1) foreclosed properties, (2) abandoned properties, or (3) properties conveyed by deed in lieu of foreclosure or short sale.

According to OLR, “The CT FAMLIES program offers 30-year fixed-rate refinance loans to Connecticut homeowners who are delinquent on their fixed-rate or adjustable-rate mortgages. The program also provides second mortgage loans in conjunction with the refinance loan. The law allows CHFA to make up to $40 million in mortgages for these purposes . . . The bill also allows CHFA to make such mortgages through the HERO program, through which CHFA purchases mortgages directly from lenders and places eligible borrowers on an affordable repayment plan.”