Section 8-219c-7 - Contract for financial assistance(a) Following approval of the State Bond Commission pursuant to the provisions of Section 3-21 of the Connecticut General Statutes, the state, acting by and through the Commissioner, may enter into a contract(s) with an eligible senior citizen for financial assistance for emergency repairs and rehabilitation in the form of a grant or loan in a principal amount not less than $1,000 and not greater than $10,000.(b) Loans made under this program shall be secured by a mortgage deed and note, signed when the loan note is executed and recorded in the land records of the municipality in which the subject property is located.(c) Unpaid principal, together with any interest, shall be due and payable, at the discretion of the Commissioner, when the subject property ceases to be used as a dwelling for the person to whom such loan was made, if such person assigns, transfers or otherwise conveys his/her interest in the subject property, or if all or part of the loan is used for purposes other than eligible emergency repairs and rehabilitation costs as described in Section 2 (b) above.(d) If a recipient is unable to repay a loan, the Commissioner may, at his discretion, adjust the interest rate, terms and conditions of the loan to facilitate repayment, but in no case shall the term of the loan exceed 30 years.(e) The interest rate for loans shall be established by the State Bond Commission, based upon the recommendation of the Commissioner.(f) The contract for a grant-in-aid shall provide that if the subject property, within ten years of the date of such grant, ceases to be used as a dwelling for the person to whom such grant was made, if such person assigns, transfers or otherwise conveys the interest in such dwelling, or if all or part of the grant is used for purposes other than eligible emergency repairs and rehabilitation costs as described in Section 2 (b) above, then an amount equal to the amount of such grant, minus ten percent (10%) for each full year which has elapsed since the date of such grant, shall be repaid to the state.(g) The contract shall also provide that a lien in favor of the State shall be placed upon each subject property for which a grant has been provided to ensure that the amount owing will be repaid in the event of a change in occupancy.Conn. Agencies Regs. § 8-219c-7