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January 17, 2008

Update: Funds focus on foreclosures and heating aid

Providing good shelter -- in the form of keeping warm and decent housing -- are two matters drawing funding right now.

Providence Mayor David N. Cicilline this morning announced a new program to offer zero-interest loans to help people buy properties out of foreclosure.

The city is setting up a $1 million fund for loans designed to help pay for repairs and improvements to dilapidated properties. The $1 million is part of the city’s Housing Trust Funds, which are used, among other things, to build affordable housing and assist borrowers with closing costs, said Ken Schadegg, housing coordinator for the Providence Department of Planning and Development.

The fund, which has been in existence since the early 1990s, is self-generating; the money from repaid loans is used to make new loans, Schadegg said.

The loans for foreclosure properties would not have to be repaid until the owner sells the property.

The funding is also aimed at encouraging banks to provide mortgages for such properties by assuring funds are in place to fix them up.

Providence has been especially hard hit by foreclosures. Last month, 176 of 308 properties in Rhode Island advertised for foreclosure were located in Providence.

Yesterday, U.S. Rep James Langevin, D-Rhode Island, applauded the release of $450 million in federal energy assistance fundsto help people keep the heat on this winter.

Of that money, $4,477,366, which includes $12,686 for tribes, has been slated for Rhode Island to help eligible low-income homeowners and renters in Rhode Island meet home energy costs.

-- Journal staff writer Lynn Arditi and projo.com staff writer Michael P. McKinney

Posted by Mike McKinney  at 12:19 PM | Permalink

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JM | January 17, 2008 12:39 PM link

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