New York, NY – July 24, 2008 – (RealEstateRama) — Governor David A. Paterson today announced a total of $1,765,000 in grants as part of New York’s continued efforts to address the subprime mortgage crisis. The grants will be provided to non-profit agencies for homeownership assistance and foreclosure prevention counseling, advocacy and legal services. Governor Paterson has made addressing the mortgage crisis a priority of his administration, demonstrated with the passage of a historic subprime agreement during this year’s legislative session.
Governor Paterson also applauded the House of Representatives – and specifically New York’s Congressional delegation – for passing a significant housing bill on Wednesday, and urged the Senate to take similar action and for President Bush to sign the bill.
“On Main Street, people are losing their homes and on Wall Street, the foreclosure crisis is placing the economies of New York, the United States and increasingly the world into a tailspin,” said Governor Paterson. “One of the most critical things we can do is educate homeowners and help them access the tools they need to keep their homes and their financial security. New York has taken the lead in reaching out to homeowners in need, and it is encouraging to see the House pass a bill that includes significant funds for refinancing, consumer counseling and legal assistance. The Senate and President must do the right thing and make this bill law.”
The grants were awarded by the New York State Division of Housing and Community Renewal (DHCR) and the New York State Banking Department. DHCR awarded $975,000 to 12 organizations through its Urban Homeownership Assistance Program (UHAP) for homeownership assistance programs to low-income families. The Banking Department awarded more than $790,000 in grants to eight agencies as part of a $2 million settlement fund from prior Banking Department enforcement actions. The Banking Department grants will provide foreclosure prevention services.
In addition to today’s awards, the State has also set aside as much as $20 million for financial counseling and legal services for homeowners who hold a subprime or unconventional mortgage under the Subprime Mortgage Foreclosure Prevention Services Program.
Deborah VanAmerongen, Commissioner of DHCR, said: “DHCR is proud to work with Governor Paterson on programs that help people keep their homes and their lives intact during this difficult time. These grants will support the local organizations that are on the ground working every day in communities to make homeownership a positive experience that provides security and peace of mind to families.”
Richard H. Neiman, Superintendent of Banks for the State of New York, said: “With tens of thousands of New Yorkers at risk of foreclosure, borrowers are in even greater need of housing counseling and support. These grants will ensure that strained foreclosure prevention services will receive the support they need to provide the staffing, tools and training to face this crisis.”
The Division of Housing and Community Renewal, which is administering the program with the Housing Trust Fund Corporation (HTFC) is currently holding a series of workshops to discuss program applicant requirements and the funding process. Dates and locations can be found on the DHCR Web site at www.dhcr.state.ny.us.
The Organizations receiving grants from DHCR are:
- West Side NHS, Inc. in Buffalo
- NeighborWorks Rochester
- Better Neighborhoods, Inc. in Schenectady
- NHS of Jamaica, Inc.
- NHS of North Bronx, Inc.
- Ridgewood-Bushwick Sr Citizens Council, Inc.
- West Harlem Group Assistance, Inc.
- Northeast Hawley Development Assoc., Inc. in Syracuse
- United Tenants of Albany, Inc.
- Margert Community Corp. in Far Rockaway, Queens
- Cypress Hills Local Dev. Corp. in Brooklyn
- Utica NHS
The organizations receiving grants from the New York State Banking Department are:
- South Brooklyn Legal Services;
- Legal Aid Society;
- Neighborhood Housing Services of New York City;
- Legal Services for New York-Staten Island;
- Cypress Hills Local Development Corporation;
- City Bar Justice Center;
- Brooklyn Cooperative FCU;
- Legal Services of New York-Bronx.
