IN THE NEWS

Grant boosts initiative to prevent foreclosures in Bridgeport

February 25, 2009; As originally appeared in TheBridgeportNews.com

The Housing Development Fund (HDF) has received $88,000 from the Fairfield County Community Foundation, United Way of Coastal Fairfield County and People’s United Community Foundation.

The grant will be used to offer interior and exterior housing improvements, and down payment and closing cost assistance, to low- to moderate-income homebuyers.

The nonprofit HDF will work with the city of Bridgeport to provide case management for neighborhood stabilization and property owners facing foreclosure. Part of the grant will be used to open an office near City Hall.
There are more than 5,500 subprime loans in Bridgeport, the highest number in Connecticut. Nearly one-third of Bridgeport’s housing stock is more than 70 years old.

“In Bridgeport, our number one priority is stabilizing neighborhoods and then, when and where possible, preserving our valuable affordable-housing stock,” Mayor Bill Finch said. “Combined, we have a large population of people who have been targeted by predatory lenders and a large number of difficult-to-market properties.”

In late December, $25 million in federal funding was awarded to Connecticut for the federal Neighborhood Stabilization Program (NSP). The state will award Bridgeport the largest allocation to aid struggling subprime borrowers.

The NSP permits state and local governments to purchase foreclosed homes at a discount and to rehabilitate or redevelop them in order to respond to rising foreclosures and falling home values.