The foreclosure crisis threatens to unravel significant progress and reinvestments communities made through neighborhood revitalization efforts. Here are examples of how some state and local governments and organizations are addressing the problem:
Managing Foreclosures and Vacant Properties
This Municipal Action Guide prepared by the National League of Cities offers solutions for the challenges that cities and city leaders face in dealing with foreclosures: preventing vacancies, preventing deterioration, rehabilitation and re-use and demolition.
Innovations in Neighborhood Stabilization
Housing Partnership Network members representing Innovations Initiative projects in Atlanta, Cleveland, Boston, Connecticut, Chicago, Minneapolis, New York City, Springfield, MA, and two national programs shared successes from their programs. Approaches funded by the Initiative included the hiring of unemployed people to work on the rehabilitation of foreclosed homes; training local residents to become landlords and manage small, multi-family properties; and purchasing houses out of foreclosure and selling them back to the families that lost them with new, more affordable, closer-to-market-rate mortgages.
Reclaiming Cleveland Target Area Plans
This contains Target Area Plans for 16 neighborhoods that include the findings of field surveying efforts, proposed approaches to the utilization of NSP2 funding, an implementation strategy that provides details of how the proposed plans can be realized on a parcel-by-parcel basis and what additional resources can be brought to bear on the improvement effort.
Miami/Dade County Foreclosure Registry
Miami-Dade County created the Foreclosure Registry that tracks foreclosed homes at risk of becoming, or that already have become, deteriorated. Under the registry’s rules, any bank or lending institution that files a foreclosure action against a homeowner must also register the dwelling with the county Building and Neighborhood Compliance Department within 30 days of a foreclosure notice. The Building and Neighborhood Compliance Department sends an inspector to the property. The inspector looks at specific code points. Any severely deteriorated home is immediately repaired and the responsible party is billed.
Bank of America Mortgage To Lease Pilot Program
Bank of America has announced a program that will let homeowners facing foreclosures stay in their homes as renters. The "Mortgage to Lease" program will start as a limited pilot program for up to 1,000 homeowners in Arizona, Nevada and New York selected by the bank.
Federal Reserve Videos and Resources For Stabilizing Communities
This Federal Reserve website provides series of video reports that highlight promising stabilization work from three cities--Cleveland, Phoenix, and Detroit, along with resource information and strategies for communities working to preserve and revitalize their neighborhoods.
Citibank Neighborhood Stabilization Videos
Citi Community Development presents three videos – separate yet interconnected. The videos illustrates the different phases of community development across the U.S. The Foundation of Love Ministry in Detroit is a faith-based organization using minimal resources to help its constituents find decent affordable housing. In St. Louis, Mo., ‘Beyond Housing,’ a NeighborWorks affiliate, is working with 24 municipalities to unify strategies and share resources; the third showcases Chicanos Por La Causa, Inc., a complex nonprofit corporation with its four areas of focus braided together to improve the quality of life for people in the communities they serve.
Detroit | St. Louis | Phoenix
Columbus, OH NSP Case Study Video
This example from Columbus, OH shows how targeting NSP funds on a small area transformed vacant boarded-up houses turned around a neighborhood. Homeport CDC used a “block-by-block” approach and a special mortgage product loan product developed by Huntington Bank exclusively for this program. Home buyers have to take up to twenty hours of credit counseling, home-buying education counseling, and one-on-one credit counseling with the Homeport counseling staff.
Enterprise Community Partners Videos
These two videos describe how NSP grantees in Cleveland, OH and East Bay, CA addressed the unique marketing challenges of previously foreclosed properties and how David Morton and the Reno Housing Authority run successful rental property management programs.
Marketing NSP Video | Property Management Video
Mortgage Resolution Fund
U.S. Department of the Treasury has approved an application by the Illinois Housing Development Authority (IHDA) to allocate $100 million of that state’s Hardest Hit Funds to a newly-created Mortgage Resolution Fund (MRF). MRF will use the Hardest Hit Funds to acquire defaulted mortgage loans, with a goal of modifying those loans so that existing homeowners can remain in their homes with a right-sized loan and affordable payments. MRF expects to work in five or more states which have received federal allocations of Hardest Hit Funds.
The SUN Initiative (stands for ”Stabilizing Urban Neighborhoods”) designed by Boston Community Capital works with banks and attorneys to stop the eviction process, purchase foreclosed properties at current market values, and resell those properties to their current occupants at a significant discount off the prior mortgage value. SUN provides foreclosed homeowners with a new 30-year, fixed rate mortgage.
REO and Vacant Properties: Strategies for Neighborhood Stabilization
This report contains seventeen articles that examine a variety of neighborhood stabilization issues. The collection highlights both areas of need--such as for data, technology, and collaboration--and promising solutions from communities across the country. Examples include the Cuyahoga County, Ohio, land bank that holds vacant properties until they can be returned to productive use, and Boston Community Capital’s efforts to purchase foreclosed properties and sell them back to former owners or tenants using a licensed mortgage affiliate.
Innovative NSP Strategies for Low-Income Housing
This report highlights how Knoxville, Phoenix, Cleveland, Greenville County, and Hamilton County leveraged Neighborhood Stabilization Program funds with other resources to preserve and increase the community’s supply of affordable housing for very low-income families.
Regional Resilience in the Face of Foreclosures
This report compares local responses to the foreclosure crisis by leaders and organizations in six housing markets. The most resilient metropolitan areas had strong housing nonprofits and a history of collaboration between the public, private, and nonprofit sectors.
Living Cities Pilot Program
Promising local approaches for returning foreclosed properties to productive use in strong, moderate and weak housing markets such as Chicago, Cleveland, Dallas, Detroit, Los Angeles, Massachusetts, New York City, Rhode Island, Twin Cities and Washington, DC.
National Lease Purchase Initiative
Self-Help has developed a national lease-purchase initiative to help local nonprofits buy single-family properties using a Fannie Mae mortgage product, and lease the homes to families who are not yet mortgage-ready but can get there within a five-year time frame.
Freddie Mac REO Rental Initiative
Freddie Mac program allows former owner-occupants and tenants the option to lease foreclosed properties in which they reside. This help stabilize communities and reduce losses due to vandalism by keeping more foreclosed homes occupied and in better condition. The leases are month-to-month and Freddie Mac will be actively marketing the properties for sale during the term of the lease.
Federal Reserve Forums
Presentations and best practices from a series of forums designed to help communities recover from the negative impacts of foreclosures on borrowers and neighborhoods.
NYU Foreclosed Properties Roundtable
Housing experts discuss how to best leverage public and private resources to reuse foreclosed properties in a manner that helps stabilize neighborhoods.
Enterprise Community Partners
Local Initiatives Support Corporation Case Studies
New York State