Governor Rell: Plan to Restore Neighborhoods Will Help Boost Homeownership
Rehabilitated Foreclosed Properties Available for
Eligible Low- and Moderate-Income Borrowers
April 14, 2009 – (RealEstateRama) — Governor M. Jodi Rell today announced that a comprehensive housing plan combining state and federal funds will allow communities across Connecticut to rehabilitate vacant foreclosed properties while helping eligible low- and middle-income borrowers buy those homes.
“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,” Governor Rell said. “It also makes the American dream of home ownership a reality again for families across our state.”
The state has allocated $25 million from the U.S. Department of Housing through the Neighborhood Stabilization Program (NSP) to seven of Connecticut’s largest cities considered federally “targeted areas,” the Governor said. The state is also channeling $3.6 million in federal stimulus funding to 12 more towns.
The NSP funding and the stimulus money, coming from the Small Cities block grant program, will allow communities to purchase and rehabilitate foreclosed properties. The Connecticut Housing Finance Authority (CHFA), working with local non-profit agencies or CHFA-participating lenders, will provide funding to low- and moderate-income borrowers to buy and move into the renovated 1- to 4-unit properties.
To be eligible for the CHFA homeowner program, borrowers must:
Must occupy property as private residence
Must meet an income restriction of 120 percent of the Area Median Income (AMI)
The program is not limited to first-time homebuyers in “targeted areas.”
“This program will help the state and municipalities on so many levels,” Governor Rell said. “Rehabilitating hundreds of these abandoned properties will create jobs, offer new hope to families and re-create vibrant communities. Healthy hometowns will not only play a big part in our economic recovery but provide a lasting legacy to generations of residents.”
Municipalities sharing in $25 million in NSP funds:
Bridgeport: $6 million
Waterbury: $3.6 million
New Haven: $3.3 million
Stamford: $2.9 million
Hartford: $2.8 million
Meriden: $1.8 million
New Britain: $1.8 million
A further $2.1 million is reserved for technical assistance and program administration and to reward communities for prompt performance.
Municipalities sharing in $3.6 million in federal stimulus block grants are Naugatuck, New Milford, East Haven, Torrington, Enfield, Killingly, Bloomfield, Plainfield, Wallingford, Ansonia, Shelton and Windsor.
For more information, see www.chfa.org and www.ct.gov/ecd.
Contact: 860-524-7313
