State Senator Michael McLachlan Announces Federal, State Funding to Help Danbury Homeowners, Protect Jobs

Hartford, CT – State Senator Michael McLachlan (R-Danbury) today announced the City of Danbury will receive $867,850 in federal dollars to purchase foreclosed homes which will then be resold to middle and low-income families. The money comes from the state’s overall $25 million allotment provided by the federal Neighborhood Stabilization Program (NSP).

“This money will not only be used to purchase properties that would have likely fallen into disrepair but most importantly, it will provide homes for families who need it most,” said Senator McLachlan. “I am grateful that especially during these tough economic times we are able to help our neediest citizens and preserve the quality and character of some of the neighborhoods in the great city of Danbury.”

The Neighborhood Stabilization Program was established by the U.S. Department of Housing and Urban Development as part of the Housing and Economic Recovery Act of 2008. The program provides emergency grants to states and some cities to help them respond to foreclosures in their communities.

In addition to Danbury, Norwich and New London will receive funding splitting the remaining $2.6 million from the overall $25 million granted to the state last December. The purpose of the funding is to maintain property values and stabilize neighborhoods. The city of Danbury is working with the city’s Housing Authority to identify some target properties in the City Center section.

In addition to the federal money for NSP, Senator McLachlan is happy to announce that the Barden Corporation in Danbury will receive approximately $3 million in financing and a $300,000 sales and use tax exemption from the state of Connecticut.

The loans were approved by the Connecticut Development Authority (CDA) this week. Barden Corp. manufactures precision bearings and will use the funding to retain 462 jobs and expects to hire an additional 19 employees. The funding released is part of $5.25 million in state assistance to help Connecticut businesses and is expected to help protect about 700 jobs.

“Just this week we learned that in our state alone there are more than 141,000 people without jobs so the news of some financial assistance for the Barden Corporation is particularly encouraging,” said Senator McLachlan. “The Connecticut Development Authority has done the right thing in making this funding available to some of our state’s businesses and I am extremely happy one of them is right here in the 24th District.”

Since January, CDA has approved over $15 million in financing to businesses across Connecticut and has helped retain and create more than 4,000 jobs. For more information on CDA loans visit: www.ctcda.com.