Governor Deval L. Patrick
Neighborhood Stabilization Loan Fund
July 1, 2008
As Delivered

On Tuesday, July 1, 2008, Governor Deval Patrick announced the details of a unique state-sponsored, low-interest loan fund for developers to buy abandoned and at-risk properties, and get them quickly reoccupied with new homeowners or renters. The fund, consisting of $17 million from private lenders and another $3 million from private non-profit foundations, is part of the Patrick Administration's comprehensive response to the foreclosure crisis in Massachusetts.

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Governor Patrick:

We are…we are joined by my colleagues in government, by neighborhood activists, by leaders here in Chelsea and in… across the Commonwealth, who are trying to respond to a true crisis that we have here in the Commonwealth around foreclosures. And foreclosures are devastating, both for individual homeowners and their families, and also for communities.

The disruption to a family of losing their home is compounded by the disruption to a community's stability by having vacant properties. Now we know that we have to respond on many, many levels, and I want to particularly acknowledge Under Secretary Tina Brooks for her extraordinary leadership in developing a strategy that is multi-pronged, to respond at those different levels. And Tina just raise your hand because she is doing a wonderful job. Wonderful job.

We also know that for those situations where foreclosure cannot be avoided, that we, all of us -- not just in government, but in private developers, and others in community -- we have to develop strategies to try to stabilize those neighborhoods, and that's why we have gathered this morning. To announce a 20 million dollar fund, a loan fund, to be made available to local communities, to acquire, redevelop foreclosed-upon properties and put them back into the stable market for housing available to residents in Chelsea and all over the Commonwealth.

This fund is privately supported, and I want to acknowledge and thank the many investors who have stepped up to see their stake in the stability of neighborhoods in Chelsea and elsewhere. MHIC, the Massachusetts Housing Investment Corporation, the Boston Foundation, the Hyams Foundation, a host of other private investors who have come together to help create this opportunity for neighborhood developers and private interests, to take advantage of resources to invest in destabilized properties, and to re-stabilize those properties. It's a wonderful example of people coming together to try to solve a problem.

No one is more concerned than I am, or the people here on this riser, about what is happening in terms of foreclosures around the Commonwealth. We get a lot of credit in national publications, I've noticed, for the level and quality and seriousness of the response programs that, at the state level and working with local officials and private individuals, that we've been able to develop. But we know that for the individual family or for the neighborhood affected, these are very worrisome times. And we are here, all of us, to convey that we intend to work with you, and to do everything we can to try to assure that we come through this crisis stronger, and that we come through it together.