More Than $1.16 Million Awarded to Legal Services NYC Partners for Foreclosure Prevention

Governor David A. Paterson has announced a total of $4,175,500 in
grants as part of New York’s continuing efforts to address the subprime
mortgage crisis. $446,000 will be awarded to  Greater Sheepshead Bay Development Corporation, which will
partner with Midwood Development Corporation and Legal Services NYC to
provide Southeastern Brooklyn homeowners with outreach, education,
counseling, mitigation, and mediation services. The organizations will
also hold foreclosure workshops and publish a newsletter for at-risk
homeowners. An additional $720,000 will be awarded to Brooklyn Housing and Family Services,
Inc., which will partner with Brooklyn Legal Services Corporation A (a program of Legal Services NYC) to
provide outreach, education, financial counseling, legal
representation, and court-based services to more than 1,000 households.

Find the full press release from Governor Paterson's office below: 

Governor David A. Paterson has announced a total of $4,175,500 in
grants as part of New York’s continuing efforts to address the subprime
mortgage crisis. Consistent with the initial grants announced in July
2008, the grants announced today will be provided to non-profit
agencies for homeownership assistance and foreclosure prevention
counseling, advocacy and legal services. Governor Paterson has made the
mortgage crisis a priority of his administration, demonstrated with the
passage and signing of a historic subprime agreement this summer.

“Recent
action by the U.S. Treasury Department to place both Freddie Mac and
Fannie Mae into conservatorship clearly highlights the need to reassess
our federal banking regulatory system. New York State has already
started to take these steps,” said Governor Paterson. “Both on the
federal and state level, we need to bring stability to the market and
ensure the continued availability of credit. In the meantime, we must
assist homeowners who are facing foreclosure today. These grants will
help our residents keep their homes and help protect the solvency of
our financial institutions.”

The New York State Division of
Housing and Community Renewal ( DHCR ) awarded $3,696,000 from the
State’s $25 million Subprime Foreclosure Prevention Program to seven
non-profit organizations around the State to help homeowners at risk of
foreclosure. Additionally, the Banking Department awarded $479,500 in
grants to five agencies to provide foreclosure prevention services from
a $2 million settlement fund from prior Banking Department enforcement
actions. Additional grant funding will be announced at a later date.

Division
of Housing and Community Renewal Commissioner Deborah VanAmerongen
said: “Governor Paterson and the Legislature deserve much credit for
including $25 million for the Subprime Foreclosure Prevention Program
in this year’s budget. This funding will allow us to mobilize the
State’s vast network of not-for-profit organizations to provide
counseling, legal, mediation, and other support services for homeowners
who entered into subprime or unconventional mortgages.”

Richard
H. Neiman, Superintendent of Banks for the State of New York, said:
“New York is demonstrating its commitment to New Yorkers at risk of
foreclosure through a variety of actions ranging from the recent
legislation signed by Governor Paterson to the grants announced today.
These grants, which are derived from enforcement fines and settlements,
will enhance the level of support for homeowners facing foreclosure
throughout the state.”

The seven organizations awarded grants from DHCR are:

–
$446,000 to Greater Sheepshead Bay Development Corporation, which will
partner with Midwood Development Corporation and Legal Services NYC to
provide Southeastern Brooklyn homeowners with outreach, education,
counseling, mitigation, and mediation services. The organizations will
also hold foreclosure workshops and publish a newsletter for at-risk
homeowners.
– $720,000 to Brooklyn Housing and Family Services,
Inc., which will partner with Brooklyn Legal Services Corporation to
provide outreach, education, financial counseling, legal
representation, and court-based services to more than 1,000 households.

– $540,000 to Ridgewood Bushwick Senior Citizens Council, Inc.,
which will collaborate with Queens Multi Service Center, Northern
Bushwick Residents Association, and Southside Williamsburg Task Force
to expand existing foreclosure services to north Brooklyn and parts of
Queens.
– $575,000 to the Long Island Housing Partnership, Inc.,
which will collaborate with Nassau Suffolk Law Services Committee, Inc.
to expand their existing program and outreach efforts, including
developing a web site to target at-risk homeowners.
– $545,000 to
Westchester Residential Opportunities, Inc., which will partner with
the Legal Services of the Hudson Valley to provide Westchester County
homeowners with a full spectrum of housing counseling and legal
services to avoid foreclosure and homelessness.
– $700,000 to
Empire Justice Center in Rochester, which will partner with The Housing
Council and the Legal Aid Society to implement a foreclosure prevention
program in Monroe, Livingston, Ontario, Orleans and Wayne Counties.
–
$170,000 to Utica NHS NeighborWorks HomeOwnership Center, which will
partner with the Legal Aid Society of Mid-New York to implement a
foreclosure prevention program in Oneida, Herkimer and Madison
Counties. Services will include a 24-hour helpline.

DHCR's
Housing Trust Fund Corporation has worked with the Banking Department,
Office of Court Administration, and HFA/SONYMA to develop a continuous
open window RFP for not-for-profits seeking funds under the Program.
Proposals for funding will be accepted continuously until all program
funds have been disbursed.

For more information on the program
and to access a list of organizations around the State that have
received public funding to provide foreclosure prevention services, go
to www.nysdhcr.gov.

The five organizations awarded grants from the New York State Banking Department are:

–
$100,000 to Community Development Corporation of Long Island, which
will provide expanded housing counseling services to residents of
Nassau and Suffolk counties over a two-year period.
– $100,000 to
Rural Ulster Preservation Company, which will partner with the Legal
Services of the Hudson Valley to provide individual housing counseling,
loss mitigation and legal representation. The grantee will also conduct
outreach and information sessions. Geographic areas to be covered are
Ulster, Orange and Sullivan counties.
– $100,000 to Rockland
Housing Action Coalition which will provide expanded housing counseling
services to residents of Rockland and Orange counties over a two-year
period and will also be willing to serve Westchester and Ulster
counties.
– $100,000 to Housing Action Council, which will partner
with Community Capital Resources and Legal Services of the Hudson
Valley to provide individual housing counseling, loss mitigation and
legal representation to residents of Westchester, Putnam and Rockland
counties over one year. The organizations will also engage in community
outreach and marketing, develop information and educational services,
train and advise community advocates and attorneys, and produce written
and web-based community education and self help materials.
–
$79,500 to Nassau/Suffolk Law Services Committee Inc., which will
provide legal advice and representation to homeowners in Nassau and
Suffolk counties who are facing foreclosure.

In addition to
the recipients noted above, in July 2008, the Banking Department
awarded more than $790,000 in grants to eight agencies throughout New
York City and intends to award an additional approximately $700,000 to
a number of agencies serving other areas of the State from the $2
million settlement fund from prior Banking Department enforcement
actions.

The New York State Banking Department is the
regulator for all state-chartered banking institutions, virtually all
of the United States offices of international banking institutions, all
of the State’s mortgage brokers, mortgage bankers, check cashers, money
transmitters and budget planners. The aggregate assets of the
depository institutions supervised by the Banking Department are more
than $1.8 trillion.

In addition to regulating banking
institutions, the Banking Department is active in informing and
educating all New Yorkers on banking matters. To contact the Banking
Department, please call 1-877-BANK-NYS or visit the Web site at www.banking.state.ny.us.