Governor Rell: $225 Million Available To Help Towns

Lower Financing Costs for Construction Projects

State Now Accepting Applications

for Stimulus ‘Recovery Zone’ Program

Governor M. Jodi Rell today announced the state is now accepting applications for $225 million in special bonding available through a new federal stimulus program for eligible shovel-ready construction projects throughout the state. 

“This new stimulus program is an opportunity to build upon the progress we have made on Connecticut’s responsible growth agenda by jump-starting many worthwhile projects,” said Governor Rell. “By lowering the costs of financing for these shovel-ready projects, we are providing a boost to the local and state economies and putting people to work when they need it most.”

The Governor said $90 million is for tax credit bonding for governmental-purpose projects by cities and towns, among others, and $135 million is for private sector projects.  Sixty-two communities in Connecticut are eligible for this self-sustaining financing.

In June, the U.S. Treasury Department unveiled the Recovery Zone Bond program, authorized through the American Recovery and Reinvestment Act of 2009 (ARRA). The federal program makes available $25 billion in bond authority to boost critical financing and to stimulate economic development projects in “recovery zones,” specially designated areas with significant poverty, unemployment, foreclosures or general distress.  The breakdown of allocations available to Connecticut is below.

The Recovery Zone Bond program is jointly administered by the Connecticut Development Authority (CDA) and the Department of Economic and Community Development (DECD).  The designated recovery zones are based on existing criteria for federal entitlement communities, public investment communities, targeted investment communities (those communities that have enterprise zones), distressed municipalities and enterprise corridor zones.  A complete list of the towns designated recovery zones is below.

The Recovery Act allocates Recovery Zone bonding both directly to the state’s largest municipalities and on a county basis. 

The awarding of bond allocations for projects will be made on a competitive, ongoing basis by CDA based on criteria established by DECD and CDA.  CDA will be the conduit of the self-sustaining tax exempt bonds, which must be issued before January 1, 2011 for the projects selected.

For more information on the program and the application process, visit www.ctcda.com.

Connecticut Allocation under the Recovery Zone Bond program

Note:  The above chart reflects both types of Recovery Zone bonds – Recovery Zone Facility Bonds and Recovery Zone Economic Development Bonds. 

Connecticut Municipalities that are Designated Recovery Zones

Note:  The 62 communities listed above have been designated by the state of Connecticut as Recovery Zones.  These communities include the municipalities that have received a direct bond allocation from the Treasury Department along with communities that meet existing criteria for federal entitlement communities, public investment communities, targeted investment communities (communities that have enterprise zones), distressed municipalities and enterprise corridor zones. 

As designated Recovery Zones, the Recovery Zone bonds can be used to finance projects within these communities if the projects meet eligibility and financial criteria.

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