HOUSING AUTHORITY PURCHASES PROPERTIES UNDER NEIGHBORHOOD STABILIZATION PROGRAM
The Housing Authority of the City of Danbury (HACD) recently completed its first purchases of vacant foreclosed housing units withFederal funds provided under the Neighborhood Stabilization Program (NSP). The Authority worked in partnership with the City ofDanbury to secure the funding which was made available under the American Recovery and Reinvestment Act to stabilize neighborhoods through the restoration of vacant and foreclosed properties for use as affordable housing for middle-income families.
Three foreclosed condominium units have been purchased to date and will shortly be renovated to provide affordable rental housing for Danbury families. The vacant properties had been bank-owned as the result of foreclosure actions against the former owners. Two properties also had significant arrearages in common charges owed to the respective condominium associations which were cleared up as a consequence of the purchases.
Chairman of the Board of Commissioners Domenico Chieffalo commented: “This is a great program and a home run for everyone. We have divested ourselves of housing stock that was uninhabitable because of unmanageable capital needs and have replaced the units with modern low maintenance condominiums. The restrictions we place on the units ensure that they remain affordable to meet the needs of moderate income families in the area. And finally the neighborhood/condominium association is better off because they no longer have a vacant unit that is subject to vandalism and is now contributing common charges to the association. Everyone is better off because of this program. “
A distinctive feature of the Neighborhood Stabilization Program is the flexibility provided in the income requirements which are intended to extend participation in the program to middle-income families. While thirty percent of the grant funds must benefit low income families, the remainder of the funds can used to provide housing opportunities for middle-income families in an effort to expand the reach of the program and increase the economic stability of neighborhoods affected by the negative consequences of foreclosures.
Chairman Chieffalo noted: “The beauty of this program is that it allows opportunities to people across a very broad spectrum of middle income working families, from policemen and women, firemen and women and teachers as well as many other occupations that qualify under the Work Force Program. It provides an excellent opportunity to expand the population we serve and to provide quality housing for Danbury’s work-force at affordable prices. “
HACD continues to actively search for vacant and foreclosed properties suitable for acquisition and rehabilitation under this program. The City was awarded a total of $867,000 in NSP funding through a competitive grant process administered on behalf of the U.S. Department of Housing and Urban Development (HUD) by the Connecticut Department of Economic Development. Supplemental funds totaling over $550,000 were provided from the City’s Community Development Block Grant Program and HUD Housing Replacement Factor funding administered by HACD.
For more information about the Authority please visit the HACD website at www.hacdct.org.