§ 16-dd. Community development revolving loan program. 1. Definitions.
As used in this section, the following terms shall have the following
meanings:

(a) "Community development financial institution" means an
organization whose principal office is located in this state, which has
been certified as a community development financial institution by the
federal community development financial institutions fund, as
established pursuant to 12 U.S.C. § 4701, et seq.

(b) "Investment area" means a geographic area which:

(i) Is economically distressed as defined in section sixteen-d of this
act; and

(ii) Has significant unmet needs for loans or is located in a
federally designated empowerment zone or enterprise community as
established pursuant to title XIII of the federal omnibus budget
reconciliation act of 1993 (Public Law 103-66).

(c) "Low income" means having an income, adjusted for family size, of
not more than:

(i) For metropolitan areas, eighty percent of the area median income;
or

(ii) For non-metropolitan areas, the greater of eighty percent of the
area median income or the statewide non-metropolitan area median income.

(d) "Targeted population" means low-income individuals, minority and
women-owned business enterprises, small businesses, microbusinesses,
small farm businesses, community-based not-for-profit corporations, and
such other individuals and entities that otherwise lack adequate access
to loans as the corporation shall establish through guidelines.

(e) "Target market" means a defined service area which serves one or
more investment areas or targeted population.

2. The community development revolving loan program is hereby created
to provide low interest loans or loan guarantees to a target market,
where it is underserved and otherwise difficult to obtain regular bank
financing. Such loans or loan guarantees shall be made by a community
development financial institution and shall be made in target markets to
members of a targeted population for purposes including, but not limited
to, working capital, the acquisition and/or improvement of real
property, the acquisition of machinery and equipment, property or
improvements thereto, residential mortgages, commercial mortgages,
housing rehabilitation, home improvement, and for such other purposes as
the corporation shall establish through guidelines.

3. A community development financial institution desiring to
participate in the program shall execute an agreement in such form as
the corporation may prescribe and shall contain such terms and
provisions as the corporation or its agent may deem as necessary and
appropriate.

4. (a) The corporation is hereby authorized to administer the program
created in subdivision two of this section or, alternatively, to do the
following:

(i) enter into a contract with a third party to act as the agent of
the corporation with respect to the administration of such program,
pursuant to a competitive process;

(ii) conduct an annual review and assessment of the performance of the
third party in its capacity as agent for the corporation to determine
whether the contract referenced in subparagraph (i) of this paragraph
should be renewed for an additional two year period. The review shall be
based on whether the third party agent has satisfactorily met the terms
and conditions of the contract; and

(iii) promulgate rules and regulations with respect to the
implementation of the community development revolving loan program
established by this section and any other rules and regulations
necessary to fulfill the purposes of this section, in accordance with
the state administrative procedure act.

(b) Any contract entered into pursuant to subparagraph (i) of
paragraph (a) of this subdivision shall:

(i) be for a period of two years and shall be renewed for an
additional two year period subject to requirements of subparagraph (ii)
of paragraph (a) of this subdivision; and

(ii) provide for compensation for expenses incurred by the third party
agent in connection with its services as agent and for such other
services as the corporation may deem appropriate including, but not
limited to the use of the premises, personnel and personal property of
the third party agent.

5. The corporation is authorized to establish a revolving loan fund
account into which funds may be received from any source, including but
not limited to, the corporation, financial institutions, insurance
companies, business corporations and from settlements of civil actions
by the department of financial services, and from which funds may be
expended for the aforementioned purposes.

6. With respect to loans pursuant to this program, a community
development financial institution may charge application, commitment and
loan guarantee fees subject to a schedule of fees approved by the
corporation.

7. A community development financial institution participating in the
program shall submit to the corporation, an annual report detailing the
following:

(a) the number of program loans made;

(b) the amount of program funding used for loans;

(c) the use of loan proceeds by the borrower;

(d) the number of jobs created or retained;

(e) a description of the economic development generated;

(f) the status of outstanding program loans; and

(g) such other information as the corporation or its agent shall
require.

8. The corporation may directly or through a third party conduct
audits of a community development financial institution's compliance
with the provisions of this section and any regulations promulgated. In
the event of substantive noncompliance, the corporation may terminate
the participation of such community development financial institution in
the program.