Governor Rell:  $3.6 Million to Address

Foreclosure Needs in 12 Cities and Towns

            Governor M. Jodi Rell today announced that $3,616,527 in federal stimulus funding will be directed to 12 Connecticut cities and towns that are experiencing high rates of foreclosure.  The money, which comes from an additional Small Cities community development block grant allocation under the American Recovery and Reinvestment Act, will be used to help local community organizations identify and purchase bank-owned properties. The local groups will upgrade the homes and make them available for use as affordable housing for low- and middle income families.

            “Securing Connecticut’s economic future starts with stabilizing Connecticut’s neighborhoods,” Governor Rell said. “By putting people into these abandoned houses we help our economy in so many ways. When we reduce vacant units, we provide additional property tax revenue to municipalities. At the same time, we are helping the people who own homes in these neighborhoods, where property values have been driven down by foreclosures. In addition, we will also be creating jobs and improving the quality of life. Everyone wins in this scenario.”

            Municipalities receiving the funding are: Naugatuck, New Milford, East Haven, Torrington, Enfield, Killingly, Bloomfield, Plainfield, Wallingford, Ansonia, Shelton and Windsor.

            “Here in Connecticut, we have avoided the catastrophic housing decline experienced by many other states across the country. However, we are not immune to market conditions,” Governor Rell said. “Therefore, we are taking proactive measures that will ensure we are prepared for the worst. These federal funds, combined with my three-point legislative plan unveiled last November, will help homeowners, renters, and our communities deal with the biggest housing crisis in recent memory.”

            This new program will compliment $25 million in mortgage assistance funding the state received under the federal Neighborhood Stabilization Program (NSP).