LIVABLE CITY INITIATIVE BRINGS FORECLOSED PROPERTY BACK TO PRODUCTIVE USE AS PART OF NEIGHBORHOOD STABILIZATION PROGRAM
(12/2/2010) NEW HAVEN- A ribbon cutting ceremony was held today in the Fair Haven section of the City unveiling the completion of a property rehabilitation that was paid for using Federal Neighborhood Stabilization Program (NSP) funds allocated by the Housing Economic Recovery Act 2008 (HERA). This property, located at 76 Perkins Street, is 1 of fifteen being redeveloped as part of the City’s Neighborhood Stabilization Program.
The City purchased 76 Perkins Street for $93,000.00 on October 9, 2009 after it sat vacant for several months. This property was the only foreclosed property on the street and the purchase of this property prevented the structure from deteriorating into a further blight on the neighborhood. New Haven Home Recovery was selected through a competitive RFP process to purchase and rehabilitate the four-family (approx. 4,500 square foot) structure for families in danger of becoming homeless due to foreclosure. The property was sold to New Haven Home Recovery for a purchase price of $109,611.00 (acquisition cost plus carrying costs) on April 16, 2010 and rehabilitated using Neighborhood Stabilization Program funds along with private construction financing from the Greater New Haven Community Loan Fund. This property will be a rental property and serve households with an income at 50% Average Median Income and under.
The City received a $3.2 million allocation from the State of Connecticut, Department of Economic and Community (DECD) who was tasked with the administration of the state’s NSP I funding award from the US Department of Housing and Urban Development (HUD) The City of New Haven grew its NSP I allocation from a $3.2 million program to a $5.8 million program with $1.4 million in private construction financing secured by the Greater New Haven Community Loan Fund, $865,000 from NSP I Program Income, $350,000 from the Livable City Initiative HOME funding. All funding is 100% percent obligated to acquire and rehabilitate the 15 vacant and foreclosed properties.
“Based on the success of New Haven’s efforts, HUD recently notified the City that it has been awarded an additional $1million in NSP III funding under the Dodd-Frank Act to be used in the same manner as NSP I,” ssid Congresswoman Rosa DeLauro. “This additional funding serves as a vote of confidence in the City of New Haven’s efforts to deploy these funds in a matter that will help stabilize neighborhoods but also speaks to the continued challenge facing homeowners in Connecticut.”
This program’s success follows the accomplishments of ROOF (Real Options Overcome Foreclosure), an initiative started by Mayor DeStefano in 2007 to respond to the foreclosure crisis. ROOF is a collaborative effort involving the Livable City Initiative and Economic Development offices of the City, Yale University Law Clinic, Greater New Haven Community Loan Fund, the Economic Development Corporation of New Haven and Neighborhood Housing Services.
The City urges homeowners to contact ROOF who will continue to provide counseling services as long as residents keep reaching out for assistance. To find out what options you have please do not hesitate to contact Neighborhood Housing Services of New Haven at (203) 777-6925 or www.theroofproject.org.
“The main priority of the City is to keep homeowners in their homes,” said Kelly Murphy, Economic Development Administrator. “The best prevention of foreclosure is to work to address the issue prior to this action taking place and that is why it is important for homeowners to reach out for assistance since there are ever changing programs available to assist them.”
The NSP program leverages investments made by the City through its various programs and investments in public improvements, investments by our community partners and through investments made by the private sector. All of these partners working together help us keep New Haven communities vibrant.
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