HARTFORD, Conn. -- Connecticut Sen. Christopher Dodd is pushing for a bill that would make lower cost loans available for those facing foreclosure.

Dodd said he has a solution for the 14,000 Connecticut homeowners who are currently facing or going through foreclosures. He said that if something isn't done soon, we will begin to see what he called a "contagious effect."

"This issue is now affecting municipal finance, student loans," Dodd said. "You can't allow this problem just to fester and spread as it is. The old notion of people being provided shelter is about as critical an issue as I can think of."

Dodd said the gap between the state's rich and poor is the widest it's been in 82 years, and that construction of new homes is at a 20-year low.

He said that in the plan, people can refinance if they are facing foreclosure.

The plan is called the Hope For Homeowners Act.

"We use the FHA, the Federal Housing Administration, as the platform and instead of buying these mortgages, we insure them through the FHA, guaranteeing the lender they'll get something back," he said.

He said the plan will cost $1.7 billion over 10 years.