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Local News

June 5, 2008

Governor requests federal dollars for Peabody fire victims

PEABODY — Gov. Deval Patrick has asked the federal government to help victims of last week's fire in Peabody.

Patrick formally requested that the U.S. Small Business Administration declare Essex County a disaster area, a designation that makes those affected by the fire eligible for long-term, low-interest government loans.

"This additional assistance can go a long way to help those impacted rebuild their lives and remain a vital part of the Peabody community," the governor said in a press release.

The four-alarm fire last Thursday displaced more than 750 residents of The Highlands at Dearborn apartment complex. It destroyed one of the 18 buildings on the site, leaving 43 tenants without a home. Other buildings suffered varying degrees of water and smoke damage.

"The citizens of Peabody appreciate the quick and decisive response to the awful event by Gov. Patrick and his team," Mayor Michael Bonfanti said in the release.

Patrick's call for federal assistance was yesterday echoed by the offices of Sen. John Kerry, Sen. Ted Kennedy and Congressman John Tierney.

"We encourage you to do everything in your power to provide low-interest loans through SBA's disaster assistance program, and to do so as quickly as possible," the lawmakers wrote in a letter to the SBA. "The victims of the Peabody fire deserve nothing less than a swift and effective response from the federal agency responsible for providing disaster assistance to homeowners and small business owners."

The Massachusetts Emergency Management Agency found 27 apartments with major damage and 24 apartments with minor damage. One business had minor damage. The threshold to receive disaster relief is damage to a minimum of 25 homes resulting in uninsured losses of 40 percent or more of the estimated fair market value.

Mayoral aide Sean Fitzgerald yesterday said that the city was busy finding space for affected residents to meet with SBA representatives, should there be a disaster declaration.

"We're hoping that several of the most severely impacted residents will be able to take advantage of (the loans)," he said.

As of yesterday, 13 of the 17 buildings at the complex were able to be occupied.

The last time the SBA visited the North Shore, it was to lend a hand to those affected by the Danversport explosion. Thirty-three federal loans, totaling $1.8 million, were issued to homeowners. Eight loans, totaling $2 million, were issued to businesses.

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