Sec. 8-265hh. Repayment agreement. (a) Upon approval of emergency mortgage or lien assistance payments, the authority shall enter into an agreement with the homeowner for repayment of all such assistance with any interest as provided in this section. The agreement shall provide for repayment by the homeowner after emergency mortgage or lien assistance payments have ended and shall be subject to the following provisions:
(1) Repayment of the emergency mortgage or lien assistance payments shall be deferred until the homeowner (A) transfers title to the homeowner's residential real property, other than a transfer to another mortgagor under the same mortgage pursuant to a dissolution of marriage or by devise, descent or operation of law upon the death of a homeowner, (B) ceases to occupy the residential real property as a principal dwelling, or (C) obtains new mortgage loan financing, other than home improvement mortgage loan financing for repairs necessary to preserve the residential real property, which increases the amount of mortgage debt to an amount that is more than the amount of mortgage debt that encumbered the residential real property at the time when emergency mortgage or lien assistance payments were initially approved under section 8-265ff; and
(2) (A) The authority may, at the discretion of the authority, elect to enter into an agreement with the homeowner to provide that (i) interest on emergency mortgage and lien assistance payments made by the authority shall be payable from time to time or accrue, and (ii) if such interest accrues, such interest will compound periodically or accrue as simple interest.