The primary objectives of the CDBG Property Rehabilitation Program are to provide decent housing for low to moderate income families; eliminate unsafe and unhealthy housing conditions; and prevent blighting and deterioration of houses and neighborhoods through the use of housing rehabilitation
The program goals and objectives are to make priority-housing units within Norwich “Lead-Safe”. It is the goal of this program to insure availability of safe, clean and affordable housing units. Funding to property owners will be in the form of deferred payment loans/grants. The intent of providing this type of financing is to encourage participation and preservation of affordable housing.
The City of Norwich is currently administrating the third round of NSP funding. The Housing and Urban Development’s (HUD’s) Neighborhood Stabilization Program 3 (NSP3) is authorized under the Wall Street Reform and Consumer Protection Act of 2010 (Dodd-Frank Financial Reform Act of 2010), Notice 75 FR 64322 of October 19, 2010, and represents a third round of funding to provide emergency assistance to stabilize targeted neighborhoods whose viability has been, and continues to be, damaged by the economic effects of properties that have been foreclosed or abandoned. $1 billion was announced to stabilize neighborhoods hard hit by foreclosure across the nation.
The City of Norwich will use these funds to stabilize neighborhoods by allowing selected non-profit developers to acquire and rehabilitate targets located within micro-target area(s). Each home must be an REO (foreclosed) property purchased at a 1% discount and repaired (as needed) using NSP3 Federal funds. Each partner has set aside funds specific to each property and it can be used to help fill the financing gap and/or interest write downs and/or closing costs.