Monday, July 28, 2014
Gov. Dannel P. Malloy today announced that shoreline homeowners and businesses subject to coastal flooding can now apply for assistance under a new state low-interest loan program designed to help those residents elevate their homes and businesses from future severe weather and flooding.
The program, Shore Up CT, provides financing for property owners in coastal municipalities located in Flood Zones VE and AE, as defined by the Federal Emergency Management Agency (FEMA) and the National Flood Insurance Program (NFIP).
Formerly known as the Shoreline Resiliency Fund, the program was created by Malloy with particular focus on assisting residents who do not qualify for receiving federal disaster aid and would have to pay significant out-of-pocket expenses for the preventative upgrades, an announcement said.
“With continued severe weather impacting Connecticut,‘Shore Up CT is a forward-thinking approach to assist our state’s residents by taking action and fortifying our infrastructure before the next storm causes even greater damage to homes and businesses,” Malloy said.
“Preparing for and adapting to a changing environment is something we must address over the long term, and that’s exactly what we’re setting out to accomplish with this loan program.”
Terms of the Shore Up CT loan are: 2.75 percent (3.027 percent APR) fixed interest rate; 1 percent origination fee; borrow $10,000 to $300,000 with 15-year term; no monthly principal or interest payments for the first 12 months borrower must maintain property, hazard, and flood insurance for the life of the loan.
Eligible properties include: primary and secondary single family homes, or 1-4 unit owner-occupied rentals. Single-family homeowners must live in the property at least 14 days per year; businesses with fewer than 100 employees and in good standing with all state agencies; subject to coastal flooding and located in either Zone VE or Zone AE in coastline communities as defined by FEMA and NFIP.
In addition to Westport, eligible coastline municipalities include Greenwich, Stamford, Darien, Norwalk, Fairfield, Bridgeport, Stratford, Milford, West Haven, New Haven, East Haven, Branford, Guilford, Madison, Clinton, Westbrook, Old Saybrook, Old Lyme, East Lyme, Waterford, New London, Groton, and Stonington.
All properties must be up-to-date with all local, state, and federal taxes.
For new elevation projects, properties must be elevated at least one foot above the 500-year flood height elevation. This must be calculated in accordance with the Connecticut Department of Energy and Environmental Protection’s Guidance on Calculating the 500-year Flood Elevation in a FEMA Designated Coastal Flood Hazard Area issued in November.
Residents interested in applying for the loan program can now visit http://www.shoreupct.org and begin the process of submitting an application. Additional information about the program can also be found on that website.
Shore Up CT is managed by the Housing Development Fund and funded by the Connecticut Department of Housing.
To date, it has received $2 million in state bonding for start-up costs and an initial $3 million in bonding for the program.
Earlier this year, the state legislature approved legislation authorizing up to $25 million in bonding for the program.
Posted 07/28/14 at 11:46 AM Permalink