DHCR Approves First Two Grants for Foreclosure Prevention Services

ALBANY, NY (08/06/2008)(readMedia)-- The State Division of Housing and Community Renewal (DHCR) has awarded $1.1 million in grants to provide counseling and legal representation to nearly 6,000 families in Erie County and Queens who are in danger of losing their homes through foreclosure.

These are the first two grants awarded through DHCR's Subprime Foreclosure Prevention Services Program, which was created in April to address the state's growing foreclosure crisis.

DHCR Commissioner Deborah VanAmerongen said the first grants are targeted to two regions of the state hardest hit by foreclosures. "In the last 18 months, there were more than 16,500 foreclosure filing in Queens and more than 3,700 in Erie County, which has had a devastating effect on entire communities. Fortunately we have two organizations in these areas with an excellent track record of helping vulnerable low and moderate income families. "

The grants were awarded to:

• The Western New York Law Center, Inc., (WNYLC) in Buffalo received $700,000 which is anticipated to help 4,716 Erie County residents. WNYLC will partner with Legal Aid Bureau of Buffalo, Inc., Homefront, Inc. and Legal Services for the Elderly, Disabled and Disadvantaged, all of which are located in Buffalo.
• The New York Legal Assistance Group (NYLAG) will received $475,000 to help 985 clients primarily over two years. They will seek eligible homeowners in all five boroughs, but will focus on the hardest hit areas of Queens (Jamaica, Hollis and St. Albans), the Bronx (Belmont/Tremont, University Heights, and Concourse), and Brooklyn (Flatbush, East Flatbush and Flatlands). NYLAG will collaborate with Neighborhood Housing Services of Jamaica, West Bronx Housing and Neighborhood Services, and Council of Jewish Community Organizations of Flatbush.

The WNYLC team currently provides foreclosure services in Erie County. The grant will allow them to quickly expand the number of residents they serve. WNYLC will use their grant to provide outreach and education to 4,000 persons, housing counseling to 416 persons, legal consultation to 200 residents and bankruptcy representation to 100 persons.

NYLAG provides high-quality, free legal advice to vulnerable low-income individuals and families. The grant from DHCR will allow the organization to begin providing legal foreclosure services as well. NYLAG anticipates using the grant to provide legal consultation to 550 clients and legal representation to 110 clients. The group will also provide community outreach and educational sessions to 300 homeowners.

The grants were approved on the same day Governor David Paterson signed a new law that will help New Yorkers facing foreclosure and which will also reform New York's banking regulations to prevent such a crisis from happening again.

The grants from DHCR were approved by the state's Housing Trust Fund Corporation, which is chaired by Housing Commissioner VanAmerongen and administered by DHCR staff.

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