Funds to Buy Connecticut Foreclosed for Sale Properties
July 22nd, 2009 by 
Joseph Smith
About 450 foreclosed for sale properties in Connecticut would be acquired by a statewide consortium if its application for stimulus funding from the federal government gets approved.
The consortium, comprised by the Connecticut Department of Economic and Community Development, the Connecticut Housing Coalition, the cities of Hartford, Bridgeport, Stamford and New Haven and two other nonprofit housing groups, has asked for $45 million.
The second funding round of the HUD Neighborhood Stabilization Program has a total of $1.98 billion available for states and local governments to solve community problems related to foreclosed for sale properties.
Nonprofits were also invited to submit applications for the funds, with an additional advice that they can partner with other nonprofit or local government entities.
Under the Housing and Economic Recovery Act of 2008, fund recipients are required to spend the money to resolve problems related to foreclosure homes and to enhance neighborhood stabilization. Grantees are required to spend at least half of the money within two years and all of the money within three years.
Patricia Spring, coordinator of the Connecticut Housing Coalition that brought the agencies and cities together, said the money would be spent to purchase, fix and sell foreclosed for sale homes and to launch a program that will provide mortgage counseling, home ownership educational sessions and low-interest loans to lower-income families.
Spring said her agency helped organize the consortium so they can maximize their strength and accomplish more. The various groups in the consortium would collaborate on how to carry out the investment portion, the rehabilitation, the training of home buyers, the resale of the foreclosed for sale properties and the management of rental units.
Just like in most other communities across the U.S., foreclosed for sale properties push home values down and encourage crimes such as vandalism and break-ins.
Based on a nationwide survey of foreclosures in the first 6 months of 2009, Connecticut is not as battered by foreclosed properties as the other states such as California and Florida. But still, the effects of foreclosures are spreading out across the state.
Nearly 9,000 households received default and foreclosure notices in the first half of the year, with one household out of every 163 households getting a default or foreclosure filing.
These forthcoming foreclosed for sale properties would be among the properties that would be addressed by the stimulus funds the Connecticut consortium has applied for.
