Real Estate Central

The Center for New York City Neighborhoods receives $500,000 grant
recognizing its program as one of the most promising models in the country
for returning foreclosed properties to productive use.

NEW YORK, June 24 /PRNewswire-USNewswire/ — Foreclosures, like the
subprime lending that precipitated them, have been heavily concentrated in
vulnerable neighborhoods. The resulting vacant and abandoned properties
threaten values of neighboring homeowners, invite crime, and discourage
further investment.

In response, Living Cities, the longest standing consortium of the
nation’s largest foundations and financial institutions, has announced the
awarding of its first round of grants, $3,750,000, to support innovative,
locally driven responses to combat the crisis.

As part of this multi-city pilot, the Center for New York City
Neighborhoods (CFNYCN) will receive a $500,000 grant to acquire,
rehabilitate, and resell foreclosed homes. CFNYCN is a new entity created
with broad public and private sector support to address this pressing
problem.

“The Center for New York City Neighborhoods is a ground-breaking
partnership between government, non-profits, banks and philanthropic
institutions that will help to protect homeowners and build stronger, more
stable neighborhoods,” said New York City Housing Commissioner Shaun
Donovan. “Recognition by Living Cities that we are implementing one of the
most promising neighborhood stabilization models in the country will enable
us to leverage other local and national support. Prevention counseling,
legal services and education can help keep families in their homes. A home
is far too valuable for people to lose.”

In addition to making foreclosed properties available to working
families, CFNYCN will also act as mission-driven broker for short sales,
enabling the affordable purchase of short-sold homes, thus preserving the
character of many New York City neighborhoods. This intervention is
significant given the fact that many homes may not reach the foreclosure
stage due to consistently high housing demand in New York City.

These grants are going to models being built in strong, moderate and
weak housing markets, using mechanisms as diverse as New Market Tax
Credits, land trusts, and non-profit real estate brokers. “We expect our
support to help build scalable models that will serve as blueprints for
communities around the country when and if federal aid for such activities
is made available,” says Ben Hecht, President and CEO of Living Cities.

In addition to grant funds, Living Cities will be considering requests
from these grantees for up to $5 million in patient capital in the form of
long-term, low-interest rate loans from its Catalyst Fund, a new pool of
funds provided through program related investments from Living Cities’
members. Decisions on these loans will be made later this summer.

About Living Cities

Living Cities is the most enduring philanthropic and private sector
collaborative in the world, with investments in America’s cities totaling a
half billion dollars over the past 15 years, leveraging over 15 billion
dollars to revitalize Urban America. Living Cities supports bold, promising
approaches that take advantage of cities’ unique roles in America’s
economic prosperity and that have the potential to transform the lives of
low-income people and the communities in which they live. For more
information, please visit: http://www.livingcities.org.

Living Cities members include: AXA Community Investment Program, Bank
of America, The Annie E. Casey Foundation, J.P. Morgan Chase & Company,
Deutsche Bank, Ford Foundation, Bill & Melinda Gates Foundation, Robert
Wood Johnson Foundation, The Kresge Foundation, John S. and James L. Knight
Foundation, John D. and Catherine T. MacArthur Foundation, The McKnight
Foundation, MetLife, Inc., Prudential Financial, The Rockefeller
Foundation, Surdna Foundation, US Department of Housing & Urban
Development. Affiliate Member: The Cleveland Foundation.

See Also:

• Closing the book on Countrywide - Jun. 24, 2008
• Closing the book on Countrywide - Jun. 24, 2008
• HomeNet Program Reports Zero Foreclosures
• The Macerich Company Announces Second Quarter 2008 Earnings Release and Conference Call
• Justice Department Files Fair Housing Lawsuit Against Landlords in Scranton, Pennsylvania

[Via Real Estate Newswire]