To The Editor:
The Department of Economic and Community Development, the lead agency on housing matters in Connecticut, was responsible for developing the formula to distribute $25 million in federal foreclosure relief funds.
This plan was the subject of a story in the Hartford Business Journal titled “Subprime Aid Plan Questioned” (Jan. 5). While I feel the story sufficiently outlined the major issues, I believe several points bear clarification.
Since the publication of the story, Connecticut’s revised Neighborhood Stabilization Plan (NSP) was approved by the U.S. Department of Housing and Urban Development (HUD). In fact, Connecticut’s was one of the first nine state action plans to secure approval — and with good reason.
The department’s methodology was sound, and provided appropriate funding levels to communities most adversely impacted by the foreclosure crisis.
In addition, the department modified the original proposal to reflect input received during the public comment period.
Concerns raised about smaller cities not having access to funding, for example, were addressed by creating a new $2.6 million pool of financial assistance.
As the HBJ article correctly pointed out, some questions were raised as the plan evolved, but in my mind there is no doubting the final product.
My staff, which includes some of the brightest minds in the areas of housing and community development, worked extremely hard to carry out what was a very complex, important public policy project in an extremely short time frame.
Their perseverance and careful adherence to HUD’s requirements and guidelines paid off. Many other states, whose plans have been sent back for modifications, weren’t so fortunate.
HUD’s approval of Connecticut’s NSP plan, while just one piece of Gov. M. Jodi Rell’s comprehensive plan to address the foreclosure problem and stabilize neighborhoods, is a significant milestone — one that policymakers and homeowners should be very proud of.
Joan McDonald
Commissioner
Department of Economic and Community Development
Supportive Housing Cuts Costs, Saves Lives
To The Editor:
The Hartford Business Journal editorial, “Pound Foolish, ” (Jan. 5), correctly highlights that the state of Connecticut’s decision to pull back on the funding for 150 new units of supportive housing is a pull back of support of the movement to end homelessness in Connecticut.
The 14 projects in 12 communities across the state that applied for this round of funding are ready to go — i.e. they are “shovel ready” for construction jobs.
Delay will threaten site control and financing and the opportunity to create economic stimulus in local communities outside of the big cities that are slated to receive federal funding to aid struggling subprime borrowers, HBJ article “Subprime Aid Plan Questioned,” (Jan. 5).
The projects and their apartments would provide permanent homes for families, children, veterans and people with disabilities who are experiencing homelessness — living on the streets or in shelters — and not just former prisoners. People with mental illness make up a significant portion of the population who benefit from supportive housing.
Failure to provide the housing will increase state costs of homelessness by three times. The legislature has already approved the funding and now we urge Gov. M. Jodi Rell and Office of Policy and Management Secretary Bob Genuario to reverse their decision to hold up this critical funding.
Kate Kelly
Reaching Home Campaign
Partnership for Strong Communities
Hartford
