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State makes loans available to weather-proof coastal homes

Gov. Dannel P. Malloy (Madeline Stocker photo)
Gov. Dannel P. Malloy (Madeline Stocker photo)

HARTFORD, Conn. – Shoreline property owners can now apply to a state-funded loan program that provides financing for coastal home and business owners to protect their properties from future severe weather and flooding, Gov. Malloy announced Monday.

The program, called Shore Up CT, will mainly finance property elevations, but also offers additional retrofitting for flood protection and wind proofing.

“During this century we have experienced more frequent storm surges, and the number of severe storms is only expected to increase,” Governor Malloy said. “With this in mind, it is in our best interest to protect our coastal communities before disaster strikes.”

As it stands, accepted applicants can borrow up to $300,000, with a minimum loan amount of $10,000 and a 2.75 percent fixed interest rate. Malloy said that federally-controlled programs to protect coastal properties against severe weather “didn’t quite work.”
According to Malloy, Shore Up CT will provide funding for residents who wouldn’t have been able to receive assistance from similar federal programs.

See the complete story at CT News Junkie.

Comments

2 responses to “State makes loans available to weather-proof coastal homes”

  1. EveT

    The complete story indicates the program includes vacation homes: “…primary and secondary single-family homes and one to four-unit owner-occupied rentals. Single-family homeowners must live in the property at least 14 days per year….” Only 14 days per year? And your primary residence doesn’t even have to be in CT?
    Personally I would have been in favor of this only if it was limited to primary residences and if the maximum loan was $100K.
    I guess Malloy needs campaign contributions from those who can afford lovely waterfront vacation homes.

  2. One and Done

    So now the state is in the home equity loan business and has already announced they will run this at a loss. We will be able to calculate the loss when we see what the volumes are.
    .
    Currently the state is borrowing out 20 years (standard HELOC) at a 3.5% yield. So multiply the amount of loans * 0.75% plus the number of state workers that will need to be hired to administrate this and you’ll see how much we will lose exactly.

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