The City of Stamford, CT - Neighborhood Stabilization Program

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Neighborhood Stabilization Program

City of Stamford and the Foreclosure Crisis

Neighborhood Stabilization Program

Local Action Plan

The foreclosure crisis impacts neighborhood residents in two ways.

Those who cannot make their monthly housing/housing related payments, deal with uncertainty and the need to relocate under poor circumstances.
Abandoned, foreclosed home poses a liability. They decreases surrounding property values, and often become sites for vandalism and/or illegal activity. In Stamford during 2008, 116 homes went into foreclosure. As of January 2009, 85 properties are bank owned.

If you are in danger of losing your home to foreclosure, contact a U.S. Department of Housing and Urban Development (HUD) approved counseling agency to request loss mitigation services. These agencies have received federal funds to assist you to stay in your home. Contact these agencies as early as possible; despite additional funds for counselors, they are fielding a large number of requests. The CT Fair Housing Center has created, Representing Yourself in Foreclosure: A Guide for Connecticut Homeowners which provides basic information about the foreclosure process, Court papers and and notices and tips for participation in the Foreclosure Mediation Program.

To address the negative impact of already foreclosed properties on neighborhoods, Congress created the Neighborhood Stabilization Program (NSP) in Public Law 110-289, the Housing and Economic Recovery Act of 2008 (HERA). NSP funds, per federal legislation, may not be used to assist homeowners involved in the foreclosure process. Only homes which are currently bank owned or abandoned are eligible for NSP assistance.

The City of Stamford has received funding under HERA.

NSP funds can be used for the following activities:

the purchase, rehabilitation and/or redevelopment of bank owned foreclosed homes and residential properties in order to sell or rent them to low and moderate income people;
to provide financing mechanisms for purchase and redevelopment of foreclosed upon homes and residential properties;
to demolish blighted structures for redevelopment.

In Connecticut, all funds were placed into a state allocation of approximately $25 million. The City of Stamford is one of seven communities in Connecticut to receive NSP funds. The City of Stamford has been allocated $2,909,550.

The State required each of the seven communities to develop a Local Action Plan (LAP) outlining how NSP funds will be spent. The LAP shows how the community will target NSP funds to the areas of greatest need. These will be areas with the greatest percentage of home foreclosures, highest percentage of homes financed by a sub-prime mortgage related loan, and areas likely to face a significant rise in the rate of home foreclosures. The City’s LAP identifies the Cove, East Side and West Side neighborhoods for NSP activity.

The Neighborhood Stabilization Program will help keep neighborhoods safe and increase the supply of affordable homes in the City. To view information the City has gathered on local foreclosures, and the City’s LAP follow the links below.

For more information about the City’s LAP contact:

Stamford Community Development Office

Timothy R. Beeble, Director

(203) 977-4864

Last Modified: 1/20/2010 10:39:13 AM