(a) As used in this section:

(1) “Certified community development corporation” means an organization exempt from taxation under Section 501(c)(3) of the Internal Revenue Code of 1986, or any subsequent corresponding internal revenue code of the United States, as amended from time to time, that (A) focuses a substantial majority of the community development corporation‘s efforts on serving one or more target areas, (B) has as its purpose to engage local residents and businesses to work together to undertake community development programs, projects and activities that develop and improve urban communities in sustainable ways that create and expand economic opportunities for low and moderate-income people, (C) demonstrates to the Office of Community Economic Development Assistance established under subsection (b) of this section that the community development corporation’s constituency is meaningfully represented on the board of directors of such community development corporation, through (i) the percentage of the board members who are residents of a target area or a community that such community development corporation serves or seeks to serve, (ii) the percentage of board members who are low or moderate-income, (iii) the racial and ethnic composition of the board in comparison to the racial and ethnic composition of the community such community development corporation serves or seeks to serve, or (iv) the use of mechanisms such as committees or membership meetings that the community development corporation uses to ensure that its constituency has a meaningful role in the governance and direction of the community development corporation, and (D) is certified by the Office of Community Economic Development Assistance pursuant to this section;

(2) “Department” means the Department of Economic and Community Development; and

(3) “Target area” means a contiguous geographic area in which the current unemployment rate exceeds the state unemployment rate by at least twenty-five per cent or in which the mean household income is at or below eighty per cent of the state mean household income, as determined by the most recent decennial census.

(b) (1) There is established an Office of Community Economic Development Assistance within the Department of Economic and Community Development. The office shall, within available appropriations, (A) provide assistance to organizations seeking to establish themselves or be certified as a community development corporation in the state, (B) provide grants to certified community development corporations for projects to be undertaken in a target area, (C) serve as the liaison between community development corporations and investors seeking to invest funds in such community development corporations and provide assistance in soliciting investment funds for such community development corporations, and (D) seek to ensure coordinated, efficient and timely responses to such organizations, community development corporations and investors.

(2) The office shall identify eligible target areas in the state and post such target areas on the department’s Internet web site.

(c) (1) Any organization exempt from taxation under Section 501(c)(3) of the Internal Revenue Code of 1986, or any subsequent corresponding internal revenue code of the United States, as amended from time to time, may apply to the Office of Community Economic Development Assistance to establish itself as or be certified as a community development corporation in the state. The office shall prescribe the form and manner of such application.

(2) (A) Any existing community development corporation that operates or seeks to operate in the state may apply to the office to be certified. The office shall certify any community development corporation that is exempt from taxation under Section 501(c)(3) of said Internal Revenue Code and meets the requirements set forth in subparagraphs (A) to (C), inclusive, of subdivision (1) of subsection (a) of this section. Each community development corporation that is established pursuant to this subsection shall be deemed to be certified.

(B) The office shall maintain a current list of certified community development corporations and shall post such list on the Internet web site of the department.

(3) The Office of Community Economic Development Assistance shall establish a grant program for projects to be undertaken by a certified community development corporation in a target area. Such projects shall include, but not be limited to, infrastructure improvements, housing rehabilitation, streetscape improvements and facade improvements for businesses. The office shall establish the application form and process for such grant program, the criteria for eligible projects and for awarding grants and any caps or limits on the amount or number of grants awarded. The office shall post information concerning the grant program on the department’s Internet web site.

(d) (1) For the purposes described in subdivision (2) of this subsection, the State Bond Commission shall have the power from time to time to authorize the issuance of bonds of the state in one or more series and in principal amounts not exceeding in the aggregate fifty million dollars.

(2) The proceeds of the sale of such bonds, to the extent of the amount stated in subdivision (1) of this subsection, shall be used by the Department of Economic and Community Development for the purposes of carrying out the duties of the Office of Community Economic Development Assistance under subsection (b) of this section and the grant program under subsection (c) of this section.

(3) All provisions of § 3-20, or the exercise of any right or power granted thereby, that are not inconsistent with the provisions of this section are hereby adopted and shall apply to all bonds authorized by the State Bond Commission pursuant to this section. Temporary notes in anticipation of the money to be derived from the sale of any such bonds so authorized may be issued in accordance with § 3-20 and from time to time renewed. Such bonds shall mature at such time or times not exceeding twenty years from their respective dates as may be provided in or pursuant to the resolution or resolutions of the State Bond Commission authorizing such bonds. None of such bonds shall be authorized except upon a finding by the State Bond Commission that there has been filed with it a request for such authorization that is signed by or on behalf of the Secretary of the Office of Policy and Management and states such terms and conditions as said commission, in its discretion, may require. Such bonds issued pursuant to this section shall be general obligations of the state and the full faith and credit of the state of Connecticut are pledged for the payment of the principal of and interest on such bonds as the same become due, and accordingly and as part of the contract of the state with the holders of such bonds, appropriation of all amounts necessary for punctual payment of such principal and interest is hereby made, and the State Treasurer shall pay such principal and interest as the same become due.

(e) Not later than July 1, 2023, and annually thereafter, the Office of Community Economic Development Assistance shall submit a report, in accordance with the provisions of § 11-4a, to the joint standing committees of the General Assembly having cognizance of matters relating to commerce, planning and development and finance, revenue and bonding. Such report shall include, but not be limited to, a description of the activities undertaken by the office in the preceding fiscal year, the number of community development corporations established and certified in the preceding fiscal year, the number and amounts of grants awarded to certified community development corporations in the preceding fiscal year and a description and the locations of the projects undertaken by certified community development corporations in the preceding fiscal year.