Greater Boston Area Will Receive Real Estate Funds to Ease Foreclosures

According to the Patrick-Murray Administration’s commitment to improve communities hard hit by foreclosure, Governor Deval Patrick today announced that $5.1 million in federal funds will be allotted to boost neighborhood stabilization programs underway in Framingham, Leominster, Lynn, Marlboro and Worcester. Those funds can be used to acquire, and rehabilitate foreclosed properties and get them reoccupied with new renters or homeowners.

The following are some nationwide foreclosure statistics according to the united way:

Foreclosures:

2009: In 2008, foreclosure deeds in the region reached a high of more than 6,600, adding to the more than 4,000 families who had lost their homes the previous year.

2009 April: According to the state’s Department of Transitional Assistance (the Department currently providing much of the services available to homeless families) about 8% of families surveyed blamed their current homelessness on foreclosure. Just a year ago that figure was only 3%

2009 April: More than one in four (25.8 percent) of respondents to a UMASS poll are concerned they will fall behind on their mortgage payments in the next three months.

2009 April: Over 12 percent (12.6) of homeowners polled believe their home is worth less than what they owe on their mortgage.

2009 April: 48 percent of of respondents to a UMASS poll reported that foreclosures are having a negative impact on property values in their neighborhood.

2009 April: 35.7 percent of respondants to a UMASS poll believe that foreclosures are having a negative impact on the quality of life in their neighborhood.

2009 April: 87.5 percent of respondents would support policies that would protect renters in good standing from being evicted from foreclosed properties.

2009: Massachusetts home foreclosures soared 62 percent in 2008 compared with 2007 and were nearly four times higher than two years ago, according to The Warren Group, a Boston-based publisher of real estate data. Nearly 12,500 foreclosure deeds were recorded in 2008, compared with 7,653 in 2007 and 3,130 in 2006.[source]

2009: In the Northeast region’s two largest cities, Lawrence and Lowell, foreclosure filings will approach record numbers in 2008.

2009 February: According to Massforeclosures.com, 288 foreclosures were opened in Haverhill, Lowell and Lawrence between January and March 2009.

2009 January: More than 950 foreclosures were recorded in Massachusetts during the month of January, a 21.8 percent increase from the same month in 2008 and 4 percent more than a month earlier, according to The Warren Group, publisher of Banker & Tradesman.

2009 January: But lenders started fewer foreclosure proceedings in January 2009 compared to a year before. Lenders filed 1,960 petitions to foreclose in January, a 39 percent decline from the 3,212 petitions filed in January 2008.

“Foreclosed and vacant properties lessen the quality of life for entire neighborhoods,” said Governor Patrick. “This influx of additional funds to those communities will enhance the good work they are already doing to revitalize neighborhoods and create new affordable housing opportunities for hard-working individuals and families who earn modest wages.”

The funds for today’s announcement come from the U.S. Department of Housing and Urban Development’s (HUD) Neighborhood Stabilization Program (NSP1). That program was funded through the Housing Economic Recovery Act, and is part of $43.4 million that was initially awarded to Massachusetts in 2009. NSP1 is implemented in Massachusetts by the state Department of Housing and Community Development (DHCD) and funds can be used by municipalities, for-profit and non-profit developers to purchase abandoned, vacant, or foreclosed properties at a discount and to rehabilitate or redevelop them in order to respond to rising foreclosures and falling home values.

“This investment will help clean up neighborhoods and provide more affordable housing for those who are hanging on by their fingernails,” said Senator John Kerry.

“We congratulate the city of Lynn, and specifically the Lynn Housing Authority & Neighborhood Development, for their aggressive efforts to revitalize neighborhoods hit hardest by foreclosures. This particular award will not only improve the quality of life in the city’s neighborhoods, it will also help create much needed affordable rental housing units for Lynn families,” said Congressman John F. Tierney.
Award summaries:

Marlborough will receive an additional $500,000 to assist with the acquisition and/or rehabilitation of foreclosed properties with half of those funds serving household earning 50% or less of the area median income. Marlboro originally received a $400,000 grant in 2009 Framingham will receive an additional $500,000 to target to middle-income and very low-income rental homes and homeownership opportunities. Framingham originally received $700,000 in 2009.

Lynn will receive an additional $300,000 to rehabilitate very low-income properties. Lynn originally received $700,000 in 2009.

Worcester will receive $700,000 to demolish a former factory on 95 Grand Street to transform it into a mixed use development, as well as another $1,310,000 to redevelop 5 May Street for very low-income rentals. Worcester originally received $2,390,000 in 2009.

Leominster will receive $1,300,000 through the Twin Cities CDC to acquire and demolish a portion of the Whitney Building and transform it into 40 new housing units affordable to very low-income residents. Leominster did not receive NSP funding in the original awards of 2009.

“These funds along with the state’s own neighborhood stabilization program as well as another $48 million in additional NSP stimulus funds Massachusetts just received from HUD will compliment our ongoing comprehensive efforts to stem the tide of foreclosure and the negative impact that those activities have on neighborhoods all across the state,” said DHCD Undersecretary Tina Brooks.

That additional $48 million was part of HUD’s NSP2 program and those funds were awarded last January to the City of Boston, The Community Builders and a consortium with DHCD led by Massachusetts Housing Investment Corporation.

“Both the Legislature and the Administration are working hard on economic development proposals that will help get the Massachusetts economy back on firm footing, but people still need help right away,” said Senator Karen Spilka, Senate Chair, Joint Committee on Economic Development and Emerging Technologies. “I am happy to see this foreclosure prevention relief going to Framingham and the MetroWest, as these areas are crucially important to the Commonwealth’s economic health and recovery.”

“This funding will be used to rehabilitate certain foreclosed properties which will in turn help stabilize neighborhoods across Lynn,” said Senator Thomas McGee. “I am very pleased that the administration has recognized the serious foreclosure problem in the City. These improvements will help attract new renters and homeowners to previously blighted properties.”

“We must continue to do everything possible to reinvigorate and stimulate the economies of our home communities that have been devastated by the foreclosure crisis,” said Senator Harriette Chandler. “I thank and applaud the work of Governor Patrick in securing this stimulus money, and anticipate it having an outstanding effect on our ongoing recovery efforts.”

“The foreclosure crisis has hit Marlborough hard, leaving abandoned homes across the city,” said Senator Jamie Eldridge. “As these homes fall into disrepair from lack of use and no upkeep, neighborhoods begin to decline – stressing community services and frustrating abutting homeowners. This desperately needed funding will help stabilize neighborhoods while creating additional affordable housing for working families living in Marlborough.”

“This is wonderful news! I have the highest level of respect for the Twin Cities CDC; Marc Dohan and his team are improving neighborhoods in both Leominster and Fitchburg, making these great cities better places to live,” said Senator Jennifer L. Flanagan. “This is another example of stimulus funding coming into the District to provide much needed revitalization, while at the same time expanding opportunities for affordable housing for those folks affected by the foreclosure crisis.”

“This is a great day for Worcester,” said Senator Michael O. Moore. “Worcester has been hit especially hard by the housing crisis, and this funding represents a wise investment in improving communities and helping people to get back on their feet. The demolition of 95 Grand Street will eliminate what has become a blight on the neighborhood and hopefully spur revitalization and growth.”

“This is great news for the City of Leominster! This will revitalize a terrible blight in the midst of one of the core neighborhoods of the City of Leominster and create 40 units of environmentally friendly affordable housing,” said Representative Dennis A. Rosa of Leominster.

“As we begin to come out of this economic downturn, it is vital that we continue to do everything in our power to support our cities and towns,” said Representative John Binienda. “This additional funding will go a long way in both creating new affordable housing opportunities for the people of Worcester and generating new jobs associated with the construction of these properties. These projects and others like it are an effective way to stimulate our local economy by investing in our neighborhoods directly.”

“I am very pleased with the Administration’s commitment of funds to acquire and rehabilitate vacant abandoned and foreclosed properties in Lynn,” said Representative Mark Falzone. “By making these properties available to homeowners and renters, we can ensure that our neighborhoods in Lynn remain stable and vibrant.”

“Rehabilitating foreclosed and abandoned properties will not only rid our neighborhoods of certain eyesores, and raise property values but will also address major public safety issues that these properties pose, including fire hazards and gang activity,” said Representative Robert Fennell. “This funding is vital in the efforts to stabilize our community and eliminate these breeding grounds for crime.”

“These additional neighborhood stabilization funds will provide a much needed shot-in-the-arm to our downtown revitalization efforts,” said Representative Pam Richardson. “I appreciate the Administration’s willingness to partner with the Town of Framingham to address these issues.”

“I’m pleased to see this vital stimulus program come to Framingham” said Representative Tom Sannicandro. “These funds will not only assist working families in avoiding foreclosure but will promote positive economic development and improve the quality of life in Framingham.”

“To have this funding to rehabilitate foreclosed properties and get them back on the market will help us do exactly what the program is intended to do: stabilize our neighborhoods that were hit hard by the foreclosure crisis,” said Mayor Nancy Stevens of Marlborough.

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