CONCORD — Derry residents have been selected as one of five communities to receive federal dollars to help with the rising number of foreclosures in town. Derry, the fourth largest town in the state, was chosen because they have the third highest number of foreclosures in the state, according to Kathy Bogle Shields, executive director of the state Community Development Finance Authority.
Derry had 229 home foreclosures between January and August 2008. Nashua and Manchester were the only communities with a higher number of foreclosures with 344 in Nashua and 494 in Manchester, according to Shields.
"We focus on communities that have foreclosure problems," Shields said.
The state agency is set to receive $19.6 million in early 2009 to help stabilize neighborhoods by acquiring and developing foreclosed properties. The money would go toward helping households with low to middle income homeowners, according to Shields.
A draft of the Neighborhood Stabilization Program Action Plan was released last week and is available for public comment until Nov. 14. It can be found at www.nhcdfa.org.
Each community in the state was analyzed by the number and concentration of home foreclosures, the concentration of homes financed by subprime mortgages and the likelihood that the community would see a rising rate of home foreclosures.
Municipalities, nonprofit affordable housing developers, and for-profit affordable housing providers will be eligible to apply for the funds in Derry and the other four communities with the greatest need.
