Housing

HB 5314 updates Connecticut's "Homes for CT" loan program to set a clear interest rate cap: loans from participating financial institutions must charge a rate not exceeding The Wall Street Journal's published prime rate (replacing a previous Federal Home Loan Bank reference). It also expands the Connecticut Housing Finance Authority's role, allowing it to provide additional loans or forgivable grants-in-aid to eligible borrowers beyond those from banks, with these new loans being subordinate to bank loans. The changes directly affect Connecticut homebuyers (particularly first-time buyers) who qualify for the program through participating lenders. The bill takes effect July 1, 2026, and aims to streamline program administration while maintaining affordability.