Kofi Jones
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DEVAL L. PATRICK
Governor
TIMOTHY P. MURRAY
Lieutenant Governor
DANIEL O'CONNELL
Secretary
Governor Patrick Announces $2 Million in Grants for Statewide Foreclosure Assistance and Prevention Efforts
Funds will support 11 regional foreclosure education centers, counseling and loan programs for first-time homebuyers
“The threat of foreclosure is a reality confronting many homeowners in Massachusetts and across our country. Families are struggling and entire neighborhoods are being tested,” Governor Patrick said. “These grants will serve two fundamental purposes: first to ensure assistance reaches the people who need our help now and, second, prevent the number of foreclosures from growing.”
The $1.5 million in funding for 11 foreclosure education centers will cover regional areas across the Commonwealth and target communities hardest hit by the foreclosure crisis. The centers will encourage collaboration among different agencies providing outreach and assistance to homeowners in or approaching foreclosure as well as to those borrowers who have already lost their homes.
“These centers provide a meaningful local resource for borrowers who are grappling with the life-altering possibility of losing their homes or who may be transitioning out of homeownership,” said Consumer Affairs and Business Regulation Undersecretary Dan Crane. The Division of Banks, an agency within the Office of Consumer Affairs, and the Department of Housing and Community Development oversaw the competitive grant process.
An additional $500,000 in grants will be used for foreclosure prevention and first-time homebuyer counseling and loan programs. Legislation signed into law last November by the Governor requires counseling for first-time homebuyers seeking to obtain a subprime adjustable rate mortgage (ARM) so that they understand the risks associated with ARMs.
"Using these resources to support regional foreclosure prevention centers will help us to further our ongoing efforts to stabilize neighborhoods all across the Commonwealth," said Housing and Community Development Undersecretary Tina Brooks. ""These actions will help to ensure that we keep families in their homes and we keep our communities strong and vibrant."
Chapter 206 calls for strict oversight of lending standards and practices and comprehensive protections for Massachusetts homeowners. The following provisions of the statute are set to take effect on May 1, 2008.
- 90-Day Right To Cure After Default on Mortgage Loans: Homeowners in arrears will now have a 90-day statutory Right To Cure a default on their mortgage loans.
- Foreclosure Database: The Division of Banks will maintain a foreclosure database to track foreclosure activity by mortgage lenders, mortgage holders and mortgage servicers as well as mortgage brokers and loan originators.
The Patrick Administration has developed a web site to connect distressed homeowners to local, state and national programs that can help. For more information about available resources, please visit www.Mass.Gov/Foreclosure.
The following organizations have received a total of $1.5 million in grants for 11 regional foreclosure education centers:
Organization Name | Award |
Western MA Foreclosure Prevention Education Center | $192,570 |
New Bedford Office of Housing & Community Development | $150,000 |
Housing Assistance Corporation (Cape Cod) | $60,000 |
Neighborhood Housing Services of the South Shore | $50,000 |
United Way of MA Bay and Merrimack Valley | $294,700 |
South Middlesex Opportunity Council | $34,265 |
Home Preservation Coalition of the Merrimack Valley | $200,000 |
Oak Hill CDC (Worcester) | $183,750 |
City of Boston DND | $150,000 |
Homeownership Options for MA Elders | $122,715 |
North Shore Regional Partnership | $62,000 |
The following organizations have received a total of $400,000 in grants for foreclosure prevention and first-time homebuyer counseling and loan programs:
Organization Name | Award |
Pro-Home, Inc. (Taunton Area) | $20,000 |
Acorn Housing (Springfield/Boston Area) | $33,000 |
City of Boston Department of Neighborhood Development | $74,000 |
Action for Boston Community Development (Boston/Metro-North Area) | $25,000 |
Quincy Community Action Programs, Inc. (South Shore) | $10,000 |
Chelsea Restoration Corporation (Chelsea/Revere) | $21,000 |
Valley CDC (Northampton) | $10,000 |
Lawrence Community Works | $15,000 |
Oak Hill CDC (Worcester) | $40,000 |
Community Teamwork, Inc. (Merrimack Valley) | $15,000 |
SMOC (Metro-West/Blackstone Valley) | $15,000 |
Housing Assistance Corporation (Cape & Islands) | $20,000 |
Catholic Social Service Diocese of Fall River (South Coast area) | $39,500 |
Neighborhood Housing Services of the South Shore (Brockton) | $10,000 |
Plymouth Redevelopment Authority (Plymouth/South Shore area) | $6,000 |
Arlington Community Trabajando (Lawrence) | $30,000 |
Franklin County Regional Housing and Redevelopment Authority | $11,500 |
Gloucester Housing Authority | $5,000 |
The following organizations have received a total of $100,000 in grants for subprime borrower counseling:
Organization Name | Award |
Pro-Home, Inc. (Taunton/Attleboro Area) | $8,000 |
Quincy Community Action Programs, Inc. (South Shore) | $7,000 |
Allston-Brighton CDC (Boston) | $8,000 |
Oak Hill CDC (Worcester) | $13,000 |
Springfield NHS | $10,000 |
Housing Assistance Corporation (Cape & Islands) | $7,800 |
Catholic Social Services Diocese of Fall River (South Coast) | $10,000 |
Merrimack Valley Housing Partnership (Lowell Area) | $6,600 |
Lawrence Community Works | $10,000 |
MA Affordable Housing Alliance | $10,000 |
Gloucester Housing Authority | $2,000 |
Veterans Benefits Clearing House (Boston) | $7,600 |