Funds to Help Buy Properties on Listings of Bank Owned Homes

by Peter Vernon on Foreclosure Help

A public hearing will be held at the Legislative Office Building in Stamford, Connecticut to discuss the plan to release and distribute about $3.6 million federal economic stimulus block grants to several cities and towns to help them purchase and rehabilitate properties on listings of bank owned homes.

The plan for Small Cities Community Development Block Grant, announced by Governor M. Jodi Rell, is designed to help cities and towns rehabilitate their neighborhoods severely affected by the foreclosure crisis.

Rell explained that the stimulus funds will allow several communities to purchase and renovate properties on listings of bank owned homes. The renovated properties will then be resold to low and moderate income buyers at affordable prices.

The funding can also be used by municipalities to upgrade infrastructure on neighborhoods blighted by foreclosed properties, such as streets, sidewalks, sewer and water lines.

According to Rell, the plan is a sound investment that will help house families in need of affordable housing and revive the economy of neighborhoods.

She added that the stimulus money, combined with the almost $25 million in Neighborhood Stabilization Program funding, will greatly help in supporting and making investments in communities at risk of deteriorating as the foreclosure crisis continues to pose a threat to the country’s economic stability.

Meanwhile, Rell pointed out that restoration of properties purchased on listings of bank owned homes should be done in such a way that it will promote energy efficiency. Additionally, infrastructure should also be upgraded to promote conservation, small growth and energy efficiency.

In line with the energy efficiency advocacy of the her government, Rell suggested building more bus stops in communities to promote mass transportation, energy-saving street lighting and bicycle lanes.

Under the block grant program, a recipient can only receive a maximum of $750,000 and the deadline for spending the total amount is on September 30, 2012.

The Small Cities Community Development Block Grant is set to give $3,616,527 to Connecticut under the American Recovery and Reinvestment Act of 2009 (ARRA).

The Department of Economic and Community Development’s (DECD) Small Cities CDBG-R Allocation Plan has proposed to award funds to buy and rehabilitate properties on listings of bank owned homes to cities and towns of Bloomfield, Ansonia, Enfield, East Haven, Naugatuck, Killingly, Shelton, Plainfield, Windsor, New Milford, Wallingford and Torrington.