That is not correct. The CONNY proposal for 8th grade has a cutoff of 3/2001. If older than that, you can petition. If born in Mar/Apr 2001, players will be 16 during the Spring season. That is actually an appropriate age/birthdate for a 10th grader. Even allowing that is crazy, let alone being able to petition to play if the player is even older.
CT and holdbacks or overage kids are synonymous. I coach in N. Westchester and we have always had problems with overage kids when playing CT teams. So, giving them the leeway to have 16 year olds play 8th graders is not surprising.