Norwalk condominium fire declared state disaster

Jan. 12--NORWALK -- For the first time in Norwalk, a fire has been declared a state disaster.

The StoneWood Condominiums fire that displaced residents from 54 units on Dec. 11 has been listed as a disaster for the state of Connecticut, making residents of 100 Richards Ave. eligible for low-interest disaster loans.

The loans will allow people who experienced damage to their homes and personal property to take out loans at an interest rate of 3.5 percent -- 1.75 percent if they can prove they are not able to obtain credit at a reasonable rate elsewhere.

People can borrow up to $40,000 to replace or repair personal property that was damaged or destroyed by the fire; homeowners can borrow an additional $200,000 to replace or repair their primary residences.

"It's meant for locally significant disasters," said Michele DeLuca, deputy director of emergency management for the city of Norwalk. "It also covers the condo association, so they would be eligible to apply as well, which is kind of unique."

DeLuca said in the past, the U.S. Small Business Administration (which, despite its name, also provides assistance to renters and homeowners) has aided Norwalk in the aftermath of Superstorm Sandy and Hurricane Irene. Emergency Management also considered applying for a disaster designation for the 2015 Ludlow fire, which burned down a shopping center in East Norwalk, but DeLuca said the business owners impacted showed little interest.

After the StoneWood Condominiums fire, an official from the Small Business Administration (SBA) came down to view the building on Dec. 19 and decided it was eligible for assistance.

"In this case, the damage was pretty apparent," DeLuca said.

On Dec. 22, Gov. Dannel P. Malloy wrote a letter to the SBA requesting a disaster declaration.

Carol Chastang, an SBA public affairs specialist, said that as of Jan. 11, only one disaster loan application had been received.

SBA opened a temporary physical office in Norwalk last week but left on Tuesday. However, people are still eligible to apply for assistance online at disasterloan.sba.gov until Mar. 5.

Those who can show they have suffered economic injury separate from physical damage may also apply for an economic injury disaster loan, worth up to $2 million, until Oct. 2.

[email protected]; @raschuetz

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