Posted on April 11, 2008
BOSTON April 11, 2008 --- Part of Governor Deval Patrick’s comprehensive economic plan is the establishment of a $20 million privately-funded acquisition pool to purchase foreclosed and vacant properties across the Commonwealth.
The fund will be overseen by the state Department of Housing and Community Development (DHCD), and will be funded and administered jointly by the Massachusetts Housing Partnership and the Massachusetts Housing Investment Corporation (MHIC).
Non-profit organizations interested in applying for this new fund can email here. For news coverage of Patrick’s announcement, click here and here.
Focus on high-foreclosure areas
The acquisition funds will be loaned to local non-profit housing developers to secure properties for rapid rehabilitation and re-occupancy. The money will be focused in areas with a high concentration of recently vacant properties, including Boston, Brockton, Lawrence, New Bedford, Springfield and Worcester.
In his April 9 announcement at MIT, Patrick said the administration’s goals are to keep properties away from speculators, protect property values in already distressed areas, prevent an increase in crime and retain neighborhood stability.
Ongoing foreclosure prevention efforts
The acquisition fund is the latest effort by MHP to support the Patrick Administration’s efforts to support affordable homeownership and foreclosure prevention.
Starting last year, MHP began mapping foreclosure data to identify both at-risk homeowners who were about to experience increases in their mortgage rates, and neighborhoods hard-hit by foreclosures and in need of neighborhood revitalization support.
MHP followed up on this research with $160,000 funds to support foreclosure response and prevention strategies. Communities that have received individual support include Chelsea, Worcester and Springfield.
Good loans in the first place
MHP is a quasi-public state agency that supports affordable housing through community assistance, rental housing development financing and affordable homeownership. MHP administers the state’s SoftSecond Loan Program for low and moderate-income first-time homebuyers.
In 2007, SoftSecond passed the 10,000-loan mark and set a program record for loans in a single year while maintaining its tradition of low delinquency and foreclosure rates. MHP also supported a new web site that helps homebuyers find homes in their price range.
This year, MHP is unveiling a a new mortgage program called MassWorks, which blends an employer contribution into a SoftSecond loan, giving the homebuyer more purchasing power and helping employers retain employees.