Connecticut To Use State, Federal Funds On Housing, Loans For Low- To Moderate-Income Borrowers
Courant Staff Report
April 12, 2009
The state plans to use federal and state funds to help communities rehabilitate vacant, foreclosed homes and help low- to moderate-income borrowers move into them, Gov. M. Jodi Rell's office said Saturday.
The rehabilitation program totals $28.6 million: $25 million from the U.S. Department of Housing's Neighborhood Stabilization Program for seven cities considered "targeted areas," and $3.6 million in federal stimulus funding, through the Small Cities Block Grant program, to 12 more towns.
In addition, the Connecticut Housing Finance Authority, working with local nonprofit agencies or CHFA-participating lenders, will provide money to qualifying borrowers, Rell said in a press release.
"This is a tremendous opportunity to bring blighted neighborhoods back to life and return hope to cities and towns hit hardest by the foreclosure crisis," Rell said.
The cities sharing the $25 million are: Bridgeport, $6 million; Waterbury, $3.6 million; New Haven, $3.3 million; Stamford, $2.9 million; Hartford, $2.8 million; Meriden, $1.8 million; and New Britain, $1.8 million.
The state will set aside another $2.1 million for technical assistance and program administration and to reward communities for prompt performance, Rell said.
Municipalities sharing the $3.6 million in federal stimulus block grants will be Naugatuck, New Milford, East Haven, Torrington, Enfield, Killingly, Bloomfield, Plainfield, Wallingford, Ansonia, Shelton and Windsor.
To be eligible for the CHFA homeowner program, borrowers must occupy the property as a private residence and meet an income restriction of 120 percent of the Area Median Income.
The program is not limited to first-time home buyers in "targeted areas," Rell said.
Reprinted with permission of the Hartford Courant.
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