HUD offers loans in state to prevent foreclosures

Connecticut residents at risk of losing their homes are eligible for a total of up to $33 million in new funding from the U.S. Department of Housing and Urban Development.

HUD's Emergency Homeowner Loan Program is designed to help unemployed or underemployed families pay their mortgages. Connecticut was one of five states that HUD said could qualify for the new federal program, which is similar to the state's Emergency Mortgage Assistance Program.

The forgiveable-loan program is being administered by the Connecticut Housing Finance Authority.

"I encourage homeowners to contact CHFA immediately as this funding is only available for a short time," said Gov. Dannel P. Malloy in a statement.

"Our goal is to help Connecticut homeowners threatened by foreclosure stay in their homes," said Dara Kovel, CHFA's chief housing officer. "This federal program provides CHFA with an additional tool to provide homeowners stability and to support Connecticut's economic recovery."

CHFA is scheduling a series of statewide "housing fairs" to give homeowners additional information. The details will be available on CHFA's website.

"The Emergency Homeowner Loan Program will provide limited and targeted assistance to help working families get back on their feet and keep their home while they look for work," said U.S. Department of Housing and Urban Development Secretary Shaun Donovan.

l.howard@theday.com