Living Cities Funds Innovative Approach to Twin Cities Foreclosure Crisis
$500,000 grant awarded to Minnesota Foreclosure Partners Council/Twin
Cities Local Initiatives Support Corporation in recognition of one of the
most promising models in the country for returning foreclosed properties to
productive use.
MINNEAPOLIS and ST. PAUL, Minn., 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 the Twin Cities, this type of
neighborhood volatility is a major concern as foreclosures are expected to
remain high throughout 2008.
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 Minnesota Foreclosure Partners
Council/Twin Cities Local Initiatives Support Corporation will receive
$500,000 to acquire, rehabilitate and resell foreclosed homes. The group
will also use the funds to develop new financing products to help a wider
range of borrowers.
Kate Wolford, president of Minneapolis-based McKnight Foundation and a
board member of Living Cities says, “Living Cities is making a timely and
important investment in Twin Cities partners at the forefront in dealing
with the impact of the housing crisis on our neighborhoods. This grant
recognizes and supports one of the most promising neighborhood
stabilization models in the country.”
The 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 In addition to grant funds,
Living Cities will be considering requests from these grantees for up to $5
million in patient capital, long-term, low-interest rate loans from Living
Cities 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.
Minnesota Housing Finance Agency Commissioner Tim Marx notes, “With the
current turmoil in this housing market, no one has any magic solutions. To
be recognized as a leading model by a national philanthropic leader like
Living Cities is an important vote of confidence and will go a long way in
helping us bring more good ideas, players, and resources to the table.”
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.
CONTACT: Eric Henderson of Living Cities, +1-646-442-2200,
ehenderson@livingcities.org
See Also:
- Living Cities Funds Innovative Approach to Help Working Class New Yorkers Face Foreclosure Crisis
- Living Cities Helps DC Nonprofit Turn Foreclosure Crisis Into Affordable Housing Opportunity
- ‘Beyond the Mortgage Meltdown’ - New Report Analyzes Dodd/Frank Plan and Calls for Additional Steps to Address the Housing Market Crisis
- Justice Department Files Fair Housing Lawsuit Against Landlords in Scranton, Pennsylvania
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[Via Real Estate Newswire]