Sec. 8-240l. Board of directors. Duties. Goals. Establishment of affiliates. Provision of financial assistance.
Sec. 8-240l. Board of directors. Duties. Goals. Establishment of affiliates. Provision of financial assistance. (a) The entity created pursuant to subsection (b) of section
8-240k shall be governed by a state-wide board of directors appointed as follows: Five
members shall be representatives of relevant state agencies and quasi-public agencies,
appointed by the Governor; one member shall be appointed by each investor who has
committed an amount of money to the program established by subsection (a) of section
8-240k; and six members shall be persons of low or moderate income residing in public
investment communities or targeted investment communities or representatives of nonprofit organizations the primary purpose of which is to serve low and moderate income,
unemployed or underemployed residents of targeted neighborhoods, except that such
members shall comprise not less than one third of the membership, one appointed by
the speaker of the House of Representatives, one by the president pro tempore of the
Senate, one by the majority leader of the House of Representatives, one by the majority
leader of the Senate, one by the minority leader of the House of Representatives and
one by the minority leader of the Senate. The board shall appoint the additional members.
(b) The entity may: (1) Employ a staff and fix their duties, qualifications and compensation; (2) solicit, receive and accept aid or contributions including money, property,
labor and other things of value from any source; (3) establish uniform underwriting
standards and approval mechanisms for financing projects; (4) retain outside consultants
and technical experts; and (5) do all acts and things necessary and convenient to carry
out the purposes of sections 8-240k to 8-240n, inclusive.
(c) The purposes of the entity are to: (1) Coordinate, fund and implement investment
and community development in targeted neighborhoods, including small for-profit enterprises, nonprofit organizations, and related residential properties; (2) provide funding
to low and moderate income individuals to establish, maintain and expand businesses
in the state; (3) provide access for borrowers to existing public and private lending and
development programs and other funding sources, including, but not limited to, equity
investment, loan guarantees and mortgage insurance; (4) provide technical assistance;
and (5) preserve public dollars by leveraging private capital for community investment.
(d) The goals of the entity shall be to promote the following in public investment
communities, in targeted investment communities, and state-wide in areas in which low
and moderate income individuals establish, maintain and expand businesses: (1) Job
creation and skill development for the unemployed and underemployed and persons
receiving public assistance; (2) leveraging of private and community investment; (3)
community participation in decision-making; (4) the establishment of self-sustaining
enterprises; (5) improvement of the physical environment of the community and the
state; (6) promotion of affirmative action and equal employment opportunities and minority-owned businesses; and (7) coordination with the state plan of conservation and
development adopted under chapter 297 and local, regional and state strategic economic
development plans.
(e) The entity may establish one or more local or state-wide affiliates to participate
in implementation of the program established under subsection (a) of section 8-240k.
Each affiliate shall be governed by a board of directors appointed by the entity. The
board of the affiliate shall reflect the categories of membership as the membership of
the board of directors of the entity.
(f) Financial assistance shall be provided, in coordination with other sources of
public or private funds, by the entity on a competitive basis, if feasible, to individuals,
organizations, businesses, community development corporations, regional economic
development corporations and any affiliate established under subsection (c) of this section. Not less than seventy per cent of the financial assistance available under sections
8-240k to 8-240n, inclusive, shall be used for activities in targeted investment communities. The purposes for which such assistance may be used include, but are not limited
to, direct small business and community revitalization loans, technical capacity training,
loans to peer lending or borrowing groups, creation of business incubators, and development of commercial real estate for businesses owned or operated by or employing residents of public investment communities or targeted investment communities, or owned
by low or moderate income individuals who are residents of the state. As used in this
section, "financial assistance" means any and all forms of loans, extensions of credit,
guarantees, equity investments or any other form of financing or refinancing to applicants for activities consistent with the purposes of sections 8-240k to 8-240n, inclusive.
(g) The entity shall provide not less than one million dollars for technical assistance
from the funds authorized for the program for the fiscal year ending June 30, 1994. The
entity shall establish a system for assuring that funds are available for technical assistance on a permanent basis.
(P.A. 93-404, S. 2, 6; P.A. 03-93, S. 2.)
History: P.A. 93-404 effective July 1, 1993; P.A. 03-93 amended Subsec. (c) to make a technical change in Subdiv.
(1), add new Subdiv. (2) re funding by entity to low and moderate income individuals and redesignate existing Subdivs.
(2) to (4) as Subdivs. (3) to (5), amended Subsec. (d) to expand goals of entity to state-wide in areas in which low and
moderate income individuals establish, maintain and expand businesses, and amended Subsec. (f) to include businesses
owned by low or moderate income individuals in businesses for which financial assistance from entity may be used for
specified purposes and to make technical changes.